Taboola.com (NASDAQ:TBLA) Shares Gap Down on Disappointing Earnings

Shares of Taboola.com Ltd. (NASDAQ:TBLA) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $5.29, but opened at $3.73. Taboola.com shares last traded at $4.09, with a volume of 2,113,294 shares trading hands.

The company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.04). The company had revenue of $476.83 million for the quarter, compared to the consensus estimate of $499.43 million. Taboola.com had a net margin of 5.64% and a return on equity of 10.72%. The firm’s revenue for the quarter was up 2.4% on a year-over-year basis. During the same period last year, the company earned ($0.01) EPS.

Wall Street Analysts Forecast Growth

TBLA has been the topic of a number of research reports. Wall Street Zen raised Taboola.com from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 9th. Zacks Research lowered shares of Taboola.com from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Needham & Company LLC boosted their target price on shares of Taboola.com from $4.50 to $5.50 and gave the stock a “buy” rating in a report on Thursday, May 7th. Benchmark increased their price target on shares of Taboola.com from $4.50 to $6.50 and gave the company a “buy” rating in a report on Thursday, May 7th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Taboola.com in a research report on Friday, July 17th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $5.90.

Insider Activity at Taboola.com

In related news, major shareholder Apollo Management Holdings Gp, sold 12,000,000 shares of Taboola.com stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $4.40, for a total transaction of $52,800,000.00. Following the completion of the transaction, the insider directly owned 18,039,644 shares of the company’s stock, valued at approximately $79,374,433.60. The trade was a 39.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 20.60% of the company’s stock.

Institutional Trading of Taboola.com

Institutional investors have recently added to or reduced their stakes in the company. Abacus Wealth Partners LLC purchased a new stake in shares of Taboola.com in the fourth quarter worth approximately $48,000. Headlands Technologies LLC bought a new stake in shares of Taboola.com during the 2nd quarter worth approximately $43,000. DGS Capital Management LLC purchased a new position in Taboola.com during the 4th quarter valued at $55,000. Quarry LP purchased a new position in Taboola.com during the 3rd quarter valued at $42,000. Finally, Captrust Financial Advisors bought a new position in Taboola.com in the 2nd quarter valued at $46,000. Institutional investors own 42.89% of the company’s stock.

Taboola.com Stock Down 23.6%

The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 0.07. The company has a 50-day simple moving average of $5.00 and a 200 day simple moving average of $4.18. The company has a market cap of $982.89 million, a P/E ratio of 10.63 and a beta of 1.50.

About Taboola.com

Taboola.com (NASDAQ: TBLA) operates a leading content discovery platform that connects advertisers with premium publishers through native advertising and personalized recommendations. The company’s technology analyzes user behavior and contextual information to deliver promoted content, video, and product recommendations to audiences across a network of thousands of websites and mobile apps. By leveraging machine learning and big data, Taboola helps publishers generate incremental revenue while enabling advertisers to reach engaged users at scale.

Taboola’s suite of products includes feed placements, video recommendations, and sponsored content units designed to blend seamlessly with editorial pages.