Magnite (NASDAQ:MGNI) Downgraded by Wall Street Zen to Hold

Key Points

• Magnite has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, signaling a shift in investor sentiment.
• Multiple analysts have raised their price targets for Magnite, with targets now ranging from $24.00 to $30.00, reflecting a generally positive outlook despite the downgrade.
• Insider trading activities indicate significant selling, with insider Sean Patrick Buckley selling 20,000 shares, prompting scrutiny regarding management confidence in the company's future performance.

Magnite (NASDAQ:MGNI - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Several other equities research analysts have also commented on the stock. Susquehanna upped their price target on shares of Magnite from $22.00 to $28.00 and gave the company a "positive" rating in a report on Thursday, August 7th. Scotiabank reaffirmed an "outperform" rating and issued a $30.00 price target (up from $22.00) on shares of Magnite in a report on Thursday, August 7th. Wells Fargo & Company upped their price target on shares of Magnite from $13.00 to $24.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Needham & Company LLC increased their target price on shares of Magnite from $18.00 to $25.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Finally, Royal Bank Of Canada increased their target price on shares of Magnite from $19.00 to $27.00 and gave the stock an "outperform" rating in a research note on Thursday, July 31st. Ten analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $25.82.

Magnite Price Performance

NASDAQ:MGNI opened at $25.92 on Friday. Magnite has a one year low of $8.22 and a one year high of $26.65. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market cap of $3.69 billion, a price-to-earnings ratio of 89.38, a PEG ratio of 1.64 and a beta of 3.05. The firm's fifty day moving average is $23.75 and its two-hundred day moving average is $18.11.

Magnite (NASDAQ:MGNI - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.17 by $0.03. Magnite had a net margin of 6.30% and a return on equity of 8.07%. The company had revenue of $162.00 million for the quarter, compared to analyst estimates of $157.05 million. During the same period in the prior year, the company earned $0.14 earnings per share. The firm's revenue was up 6.4% on a year-over-year basis. Research analysts expect that Magnite will post 0.33 EPS for the current year.

Insider Buying and Selling at Magnite

In other news, insider Sean Patrick Buckley sold 20,000 shares of the firm's stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $25.56, for a total transaction of $511,200.00. Following the completion of the sale, the insider owned 307,193 shares in the company, valued at $7,851,853.08. This trade represents a 6.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO David Buonasera sold 2,950 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $25.37, for a total transaction of $74,841.50. Following the sale, the chief technology officer owned 238,629 shares of the company's stock, valued at $6,054,017.73. This represents a 1.22% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 862,278 shares of company stock worth $19,155,699. Insiders own 3.80% of the company's stock.

Institutional Trading of Magnite

Several institutional investors have recently added to or reduced their stakes in the stock. Marex Group plc acquired a new stake in Magnite in the 2nd quarter valued at approximately $227,000. Castleark Management LLC acquired a new stake in Magnite in the 2nd quarter valued at approximately $3,453,000. CANADA LIFE ASSURANCE Co increased its holdings in Magnite by 12.7% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 43,505 shares of the company's stock valued at $1,051,000 after purchasing an additional 4,901 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in Magnite by 382.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 15,065 shares of the company's stock valued at $363,000 after purchasing an additional 11,943 shares during the last quarter. Finally, Cannell Capital LLC acquired a new stake in Magnite in the 2nd quarter valued at approximately $3,053,000. Institutional investors and hedge funds own 73.40% of the company's stock.

Magnite Company Profile

Magnite, Inc, together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company's platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers.

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