Magnite, Inc. (NASDAQ:MGNI) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Magnite has an average analyst rating of "Moderate Buy", with 8 of 10 research firms rating it a buy and a consensus 1-year price target of about $23.89.
• Recent earnings were solid: the company reported $0.13 EPS versus the $0.11 estimate, and revenue of $164.37 million beat expectations and rose 5.5% year over year.
• Insider selling has been notable, with directors and executives selling shares in recent transactions; meanwhile, institutional investors own 73.4% of the stock, showing strong hedge fund and asset manager involvement.

Magnite, Inc. (NASDAQ:MGNI - Get Free Report) has earned an average rating of "Moderate Buy" from the ten research firms that are currently covering the stock, Marketbeat Ratings reports. Two analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $23.8889.

Several equities analysts have recently commented on the stock. BTIG Research assumed coverage on shares of Magnite in a report on Tuesday, June 9th. They issued a "buy" rating and a $20.00 price objective on the stock. Evercore restated an "outperform" rating and issued a $21.00 price objective on shares of Magnite in a report on Thursday, May 7th. Wells Fargo & Company upped their target price on shares of Magnite from $13.00 to $15.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Rosenblatt Securities reaffirmed a "buy" rating and set a $39.00 target price on shares of Magnite in a research note on Thursday, February 26th. Finally, Weiss Ratings raised shares of Magnite from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, May 11th.

Insider Activity

In related news, Director David T. Pearson sold 10,766 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $15.65, for a total transaction of $168,487.90. Following the sale, the director directly owned 79,001 shares of the company's stock, valued at $1,236,365.65. This represents a 11.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Sean Patrick Buckley sold 19,233 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $19.00, for a total transaction of $365,427.00. Following the sale, the insider directly owned 373,514 shares in the company, valued at approximately $7,096,766. The trade was a 4.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 381,806 shares of company stock worth $6,493,340 over the last 90 days. Company insiders own 3.80% of the company's stock.

Institutional Investors Weigh In On Magnite

Several large investors have recently added to or reduced their stakes in MGNI. Capital Research Global Investors increased its position in shares of Magnite by 85.0% in the 4th 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 during the last quarter. Wellington Management Group LLP increased its position in shares of Magnite by 67.7% in the 4th quarter. Wellington Management Group LLP now owns 8,629,238 shares of the company's stock valued at $140,053,000 after purchasing an additional 3,484,689 shares during the last quarter. Ophir Asset Management Pty Ltd purchased a new stake in shares of Magnite in the 4th quarter valued at approximately $38,695,000. 325 Capital LLC increased its position in shares of Magnite by 208.5% in the 4th quarter. 325 Capital LLC now owns 2,005,387 shares of the company's stock valued at $32,547,000 after purchasing an additional 1,355,326 shares during the last quarter. Finally, Blue Grotto Capital LLC increased its position in shares of Magnite by 443.8% in the 3rd quarter. Blue Grotto Capital LLC now owns 1,548,796 shares of the company's stock valued at $33,733,000 after purchasing an additional 1,263,992 shares during the last quarter. 73.40% of the stock is owned by hedge funds and other institutional investors.

Magnite Stock Performance

Shares of MGNI stock opened at $18.27 on Thursday. The firm's 50 day moving average price is $14.44 and its 200-day moving average price is $14.06. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.02 and a current ratio of 1.02. Magnite has a one year low of $10.82 and a one year high of $26.65. The firm has a market cap of $2.62 billion, a P/E ratio of 17.57, a P/E/G ratio of 0.92 and a beta of 2.32.

Magnite (NASDAQ:MGNI - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.11 by $0.02. Magnite had a net margin of 21.96% and a return on equity of 8.40%. The firm had revenue of $164.37 million for the quarter, compared to analyst estimates of $159.24 million. During the same period in the prior year, the business posted $0.12 EPS. The business's revenue for the quarter was up 5.5% compared to the same quarter last year. As a group, equities research analysts predict that Magnite will post 0.55 EPS for the current year.

About Magnite

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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