Magnite (NASDAQ:MGNI) Stock Price Up 4.4% - Time to Buy?

Key Points

• Magnite shares rose 4.4% to $25.26, while trading volume was 88% below the average daily level.
• Analysts remain broadly positive, with nine Buy ratings and two Holds producing a consensus “Moderate Buy” rating and an average price target of $28.30.
• Magnite exceeded quarterly expectations, reporting $0.26 in EPS and $192.82 million in revenue; revenue increased 11.3% year over year. However, insiders sold 935,251 shares worth about $19.0 million over the last quarter.

Shares of Magnite, Inc. (NASDAQ:MGNI - Get Free Report) rose 4.4% on Tuesday . The stock traded as high as $24.90 and last traded at $25.2620. 314,817 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 2,590,596 shares. The stock had previously closed at $24.19.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on MGNI shares. Rosenblatt Securities raised their target price on shares of Magnite from $39.00 to $40.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Benchmark increased their price target on shares of Magnite from $30.00 to $33.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. B. Riley Financial raised their price objective on shares of Magnite from $20.00 to $27.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Weiss Ratings restated a "hold (c)" rating on shares of Magnite in a research note on Friday, August 7th. Finally, Evercore reaffirmed an "outperform" rating and issued a $25.00 target price on shares of Magnite in a report on Thursday, August 6th. Nine investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $28.30.

Magnite Stock Up 3.8%

The business has a 50-day simple moving average of $19.84 and a two-hundred day simple moving average of $15.34. The company has a market capitalization of $3.60 billion, a price-to-earnings ratio of 23.01, a PEG ratio of 1.08 and a beta of 2.26. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.03 and a current ratio of 1.02.

Magnite (NASDAQ:MGNI - Get Free Report) last released 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. Magnite had a return on equity of 9.33% and a net margin of 22.49%.The business had revenue of $192.82 million for the quarter, compared to analyst estimates of $179.15 million. During the same quarter in the previous year, the company posted $0.20 earnings per share. The company's revenue for the quarter was up 11.3% compared to the same quarter last year. As a group, equities analysts predict that Magnite, Inc. will post 0.61 EPS for the current year.

Insider Activity

In other news, insider Sean Patrick Buckley sold 67,179 shares of Magnite stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $24.49, for a total value of $1,645,213.71. Following the sale, the insider owned 315,805 shares of the company's stock, valued at $7,734,064.45. The trade was a 17.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katie Seitz Evans sold 20,000 shares of the business's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $24.00, for a total transaction of $480,000.00. Following the transaction, the insider owned 496,840 shares in the company, valued at approximately $11,924,160. This trade represents a 3.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 935,251 shares of company stock valued at $19,046,675. 3.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Magnite

A number of hedge funds have recently added to or reduced their stakes in MGNI. EFG International AG acquired a new position in Magnite during the 2nd quarter worth approximately $28,000. Allworth Financial LP purchased a new position in Magnite in the second quarter worth $30,000. US Bancorp DE lifted its holdings in Magnite by 75.8% in the third quarter. US Bancorp DE now owns 1,596 shares of the company's stock valued at $35,000 after acquiring an additional 688 shares during the period. PNC Financial Services Group Inc. boosted its position in shares of Magnite by 106.3% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,783 shares of the company's stock worth $45,000 after purchasing an additional 1,949 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its stake in shares of Magnite by 98.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 3,678 shares of the company's stock worth $61,000 after purchasing an additional 1,824 shares during the period. Institutional investors and hedge funds own 73.40% of the company's stock.

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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