BTIG Research Reaffirms "Buy" Rating for Magnite (NASDAQ:MGNI)

Key Points

• BTIG Research reaffirmed its “Buy” rating on Magnite and set a $27 price target, implying 14.57% upside from the prior close.
• Magnite reported quarterly EPS of $0.26, beating estimates by $0.02, while revenue of $192.82 million exceeded forecasts and rose 11.3% year over year.
• Analyst sentiment remains positive, with nine Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $28.80; however, insiders sold nearly 968,000 shares over the past 90 days.

Magnite (NASDAQ:MGNI - Get Free Report)'s stock had its "buy" rating restated by research analysts at BTIG Research in a report issued on Wednesday, Benzinga reports. They currently have a $27.00 price objective on the stock. BTIG Research's price target points to a potential upside of 14.57% from the company's previous close.

A number of other research firms have also weighed in on MGNI. Royal Bank Of Canada raised their price target on shares of Magnite from $20.00 to $27.00 and gave the company an "outperform" rating in a report on Thursday, August 6th. Wells Fargo & Company boosted their price objective on shares of Magnite from $21.00 to $22.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. Evercore reissued an "outperform" rating and issued a $25.00 price objective on shares of Magnite in a research report on Thursday, August 6th. Needham & Company LLC raised their target price on Magnite from $25.00 to $30.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Magnite in a research report on Friday, August 7th. Nine analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $28.80.

Magnite Price Performance

Shares of NASDAQ MGNI opened at $23.57 on Wednesday. Magnite has a 1-year low of $10.82 and a 1-year high of $26.19. The business has a 50-day moving average of $21.84 and a 200-day moving average of $16.63. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.02 and a quick ratio of 1.03. The company has a market capitalization of $3.38 billion, a price-to-earnings ratio of 21.54, a PEG ratio of 1.05 and a beta of 2.30.

Magnite (NASDAQ:MGNI - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.02. The business had revenue of $192.82 million during the quarter, compared to analyst estimates of $179.15 million. Magnite had a return on equity of 9.33% and a net margin of 22.49%.The company's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.20 earnings per share. On average, equities analysts anticipate that Magnite will post 0.61 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Sean Buckley sold 67,179 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $24.49, for a total transaction of $1,645,213.71. Following the completion of the transaction, the insider directly owned 315,805 shares of the company's stock, valued at approximately $7,734,064.45. This represents a 17.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Douglas Knopper sold 37,337 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $18.10, for a total value of $675,799.70. Following the sale, the director owned 125,810 shares in the company, valued at $2,277,161. The trade was a 22.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 967,710 shares of company stock valued at $19,994,151 over the last 90 days. 3.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Magnite

Several large investors have recently added to or reduced their stakes in the stock. Meros Investment Management LP acquired a new position in shares of Magnite in the 2nd quarter valued at about $18,815,538. Stephens Investment Management Group LLC boosted its holdings in shares of Magnite by 17.0% during the fourth quarter. Stephens Investment Management Group LLC now owns 1,128,578 shares of the company's stock worth $18,317,000 after purchasing an additional 164,035 shares during the period. Royce & Associates LP grew its position in Magnite by 19.5% during the fourth quarter. Royce & Associates LP now owns 1,166,469 shares of the company's stock valued at $18,932,000 after purchasing an additional 190,318 shares in the last quarter. Capital Research Global Investors grew its position in Magnite by 85.0% during the fourth quarter. Capital Research Global Investors now owns 12,920,289 shares of the company's stock valued at $209,696,000 after purchasing an additional 5,937,428 shares in the last quarter. Finally, Manatuck Hill Partners LLC acquired a new position in Magnite in the 2nd quarter valued at approximately $8,541,000. 73.40% of the stock is owned by institutional investors and hedge funds.

Magnite Company Profile

Magnite, Inc NASDAQ: MGNI operates as an independent sell-side advertising platform that enables publishers and digital media owners to monetize their inventory through programmatic advertising. Formed in 2020 through the merger of Rubicon Project and Telaria, Magnite combines technologies for desktop, mobile, connected television (CTV) and digital out-of-home (DOOH) ad exchanges. The company provides an end-to-end solution designed to help media owners optimize yield across open marketplaces, private marketplaces and programmatic guaranteed deals.

At the core of Magnite's offering is its supply-side platform (SSP), which connects publishers' ad impressions to demand-side platforms (DSPs) through real-time bidding (RTB).

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