Magnite (NASDAQ:MGNI) Shares Gap Down - Here's Why

Magnite, Inc. (NASDAQ:MGNI - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $18.58, but opened at $17.96. Magnite shares last traded at $18.25, with a volume of 151,777 shares traded.

Analysts Set New Price Targets

Several research firms recently issued reports on MGNI. Royal Bank Of Canada cut their price target on shares of Magnite from $22.00 to $19.00 and set an "outperform" rating for the company in a report on Friday, May 2nd. Craig Hallum set a $24.00 price objective on shares of Magnite and gave the stock a "buy" rating in a research report on Tuesday, May 20th. Rosenblatt Securities reaffirmed a "buy" rating and set a $18.00 price objective on shares of Magnite in a research note on Thursday, May 8th. Benchmark lowered their target price on shares of Magnite from $25.00 to $24.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Finally, Lake Street Capital dropped their price objective on shares of Magnite from $21.00 to $19.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. One equities research analyst has rated the stock with a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $19.58.

Magnite Price Performance

The company has a market cap of $2.64 billion, a PE ratio of 57.03, a P/E/G ratio of 1.54 and a beta of 2.87. The company has a 50-day moving average price of $14.67 and a two-hundred day moving average price of $15.22. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.98 and a quick ratio of 0.98.

Magnite (NASDAQ:MGNI - Get Free Report) last announced its earnings results on Wednesday, May 7th. The company reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.06. Magnite had a return on equity of 6.71% and a net margin of 4.58%. The company had revenue of $145.85 million during the quarter, compared to the consensus estimate of $142.18 million. During the same period last year, the firm earned $0.05 earnings per share. The company's revenue was up 4.3% on a year-over-year basis. Sell-side analysts expect that Magnite, Inc. will post 0.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Michael G. Barrett sold 45,000 shares of the company's stock in a transaction on Monday, June 16th. The stock was sold at an average price of $17.76, for a total transaction of $799,200.00. Following the completion of the transaction, the chief executive officer now directly owns 686,708 shares in the company, valued at $12,195,934.08. This represents a 6.15% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Brian Gephart sold 6,334 shares of the stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $16.16, for a total transaction of $102,357.44. Following the completion of the sale, the chief accounting officer now directly owns 126,575 shares in the company, valued at approximately $2,045,452. This trade represents a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 420,224 shares of company stock valued at $7,576,098 in the last ninety days. Corporate insiders own 3.80% of the company's stock.

Institutional Investors Weigh In On Magnite

A number of hedge funds have recently made changes to their positions in the business. Capital Research Global Investors acquired a new stake in shares of Magnite in the 4th quarter worth approximately $122,986,000. Nuveen LLC purchased a new position in shares of Magnite during the first quarter valued at $41,036,000. American Century Companies Inc. increased its stake in Magnite by 855.2% in the 1st quarter. American Century Companies Inc. now owns 2,961,009 shares of the company's stock valued at $33,785,000 after buying an additional 2,651,033 shares during the period. Boston Partners increased its position in Magnite by 39.1% in the 4th quarter. Boston Partners now owns 4,756,323 shares of the company's stock worth $76,061,000 after purchasing an additional 1,336,458 shares during the last quarter. Finally, Pacer Advisors Inc. acquired a new position in shares of Magnite during the 1st quarter worth $12,576,000. Institutional investors own 73.40% of the company's stock.

About Magnite

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.