STUB (NYSE:STUB) Issues Earnings Results

STUB (NYSE:STUB) posted its earnings results on Tuesday. The company reported $0.05 earnings per share for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.06), FiscalAI reports. The firm had revenue of $501.95 million during the quarter. STUB had a negative net margin of 25.29% and a positive return on equity of 1.91%. The business’s revenue for the quarter was up 7.2% compared to the same quarter last year. During the same quarter last year, the company posted ($4.27) earnings per share.

Here are the key takeaways from STUB’s conference call:

• StubHub reported third-quarter GMS growth of 7% to $2.6 billion and adjusted EBITDA growth of 84% to $124 million. Adjusted EBITDA margin reached a public-company high of 25%.
• The company raised its full-year GMS growth outlook to 11%–13%, but kept its adjusted EBITDA outlook at $400 million–$420 million. Fourth-quarter results may vary with the timing of concert ticket on-sales and comparisons against last year’s World Cup and MLB playoffs.
• Operating efficiencies helped lower sales and marketing expense to 45% of revenue, down 9 percentage points year over year. StubHub also reported net leverage of 2.5x after debt repayments and an extension of loan maturities to October 2033.
• Management highlighted open distribution and sponsored advertising as longer-term growth opportunities, while emphasizing that it is still refining the products before scaling them. Advertising revenue is expected to be immaterial this year, in the tens of millions of dollars.

STUB Price Performance

Shares of STUB stock opened at $5.30 on Thursday. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.86. The firm has a market cap of $2.03 billion, a PE ratio of -3.68, a P/E/G ratio of 0.59 and a beta of 3.44. The business has a 50-day moving average price of $5.86 and a 200 day moving average price of $8.20. STUB has a twelve month low of $5.07 and a twelve month high of $19.39.

STUB News Summary

Investors following STUB have been watching these news items:

• Positive Sentiment: StubHub raised its full-year gross merchandise sales growth outlook to 11%–13%, while third-quarter sales and marketing expenses fell as a share of revenue. Article: StubHub: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: The company named Michael Noonan as CFO, with the transition expected to take effect in January 2027. Article: StubHub Holdings Names Michael Noonan As Chief Financial Officer
• Negative Sentiment: Third-quarter adjusted earnings of $0.05 per share missed the $0.10–$0.11 consensus range, and revenue of about $502 million also came in below estimates. The earnings shortfall is a key reason for the stock’s weakness despite year-over-year revenue growth. Article: StubHub Q3 Earnings and Revenues Miss Estimates

Analysts Set New Price Targets

Several research firms have recently issued reports on STUB. Evercore set a $14.00 price objective on shares of STUB in a research report on Thursday, August 13th. Mizuho set a $11.00 target price on STUB in a research report on Friday, August 14th. Citigroup raised shares of STUB from a “neutral” rating to a “buy” rating and decreased their price objective for the stock from $9.00 to $7.00 in a research note on Friday, September 18th. UBS Group set a $7.50 price target on shares of STUB in a research note on Thursday, August 13th. Finally, Weiss Ratings cut STUB from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 2nd. Six research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $9.92.

Insider Activity

In related news, insider Nayaab Islam sold 14,306 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $6.20, for a total transaction of $88,697.20. Following the completion of the sale, the insider directly owned 7,996,986 shares in the company, valued at approximately $49,581,313.20. This trade represents a 0.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark Streams sold 135,589 shares of the company’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $6.39, for a total value of $866,413.71. Following the completion of the transaction, the insider directly owned 1,225,976 shares in the company, valued at approximately $7,833,986.64. This trade represents a 9.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 991,338 shares of company stock worth $6,692,030. 30.97% of the stock is currently owned by insiders.

Hedge Funds Weigh In On STUB

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Nisa Investment Advisors LLC increased its holdings in shares of STUB by 135.7% in the 3rd quarter. Nisa Investment Advisors LLC now owns 4,755 shares of the company’s stock valued at $27,000 after acquiring an additional 2,738 shares during the period. Meeder Asset Management Inc. acquired a new position in STUB in the 3rd quarter valued at about $33,000. Royal Bank of Canada lifted its stake in shares of STUB by 194.4% during the first quarter. Royal Bank of Canada now owns 6,382 shares of the company’s stock valued at $39,000 after buying an additional 4,214 shares during the period. Sterling Capital Management LLC boosted its holdings in shares of STUB by 848.2% during the third quarter. Sterling Capital Management LLC now owns 7,434 shares of the company’s stock worth $41,000 after purchasing an additional 6,650 shares during the last quarter. Finally, State of Wyoming grew its holdings in STUB by 328.8% in the 3rd quarter. State of Wyoming now owns 8,371 shares of the company’s stock valued at $47,000 after buying an additional 6,419 shares during the period.

STUB Company Profile

StubHub Holdings, Inc. operates online marketplaces that connect buyers and sellers of tickets to live events, including sports, concerts, theater productions and other entertainment. Its platforms allow customers to browse listings, compare ticket options and complete purchases, while sellers can list tickets for sale. The company operates StubHub and viagogo, serving customers in the United States and international markets. Its business grew from StubHub, founded in 2000, and viagogo, which acquired StubHub from eBay in 2020.