Magnite (NASDAQ:MGNI) Shares Down 5.1% - Here's What Happened

Key Points

• Magnite's stock price fell by 5.1%, trading down to $22.53 with a significantly reduced trading volume of 270,577 shares, compared to the average of 2.7 million shares.
• Several analysts have upgraded Magnite's rating, with ten analysts issuing a Buy rating and an average price target of $25.82.
• Magnite reported earnings of $0.20 per share for Q2, exceeding estimates, with a year-over-year revenue increase of 6.4% despite a recent insider sell-off of over 1 million shares.

Shares of Magnite, Inc. (NASDAQ:MGNI - Get Free Report) fell 5.1% on Tuesday . The company traded as low as $22.73 and last traded at $22.53. 270,577 shares were traded during mid-day trading, a decline of 90% from the average session volume of 2,726,727 shares. The stock had previously closed at $23.73.

Wall Street Analyst Weigh In

MGNI has been the subject of a number of research reports. Rosenblatt Securities reaffirmed a "buy" rating and set a $39.00 target price on shares of Magnite in a report on Wednesday. Wall Street Zen lowered shares of Magnite from a "buy" rating to a "hold" rating in a research note on Saturday. Susquehanna boosted their target price on shares of Magnite from $22.00 to $28.00 and gave the company a "positive" rating in a research report on Thursday, August 7th. Scotiabank reaffirmed an "outperform" rating and set a $30.00 price target (up from $22.00) on shares of Magnite in a research report on Thursday, August 7th. Finally, Wells Fargo & Company boosted their price objective on Magnite from $13.00 to $24.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Ten investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $25.82.

Magnite Price Performance

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 stock has a market capitalization of $3.69 billion, a PE ratio of 89.38, a price-to-earnings-growth ratio of 1.64 and a beta of 3.05. The stock's 50 day moving average is $23.75 and its two-hundred day moving average is $18.11.

Magnite (NASDAQ:MGNI - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.17 by $0.03. The business had revenue of $162.00 million during the quarter, compared to analysts' expectations of $157.05 million. Magnite had a return on equity of 8.07% and a net margin of 6.30%.The business's revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.14 earnings per share. On average, equities analysts anticipate that Magnite, Inc. will post 0.33 EPS for the current fiscal year.

Insider Buying and Selling at Magnite

In other Magnite news, insider Adam Lee Soroca sold 44,519 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $20.00, for a total transaction of $890,380.00. Following the completion of the transaction, the insider owned 400,927 shares of the company's stock, valued at $8,018,540. This trade represents a 9.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Katie Seitz Evans sold 21,509 shares of the stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $25.52, for a total value of $548,909.68. Following the transaction, the insider directly owned 394,089 shares in the company, valued at approximately $10,057,151.28. The trade was a 5.18% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 862,278 shares of company stock worth $19,155,699. Insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Marex Group plc purchased a new position in Magnite in the 2nd quarter valued at approximately $227,000. Castleark Management LLC purchased a new position in Magnite in the second quarter valued at $3,453,000. CANADA LIFE ASSURANCE Co grew its stake in Magnite by 12.7% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 43,505 shares of the company's stock worth $1,051,000 after purchasing an additional 4,901 shares in the last quarter. Tower Research Capital LLC TRC increased its holdings in Magnite by 382.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 15,065 shares of the company's stock worth $363,000 after purchasing an additional 11,943 shares during the period. Finally, Cannell Capital LLC purchased a new stake in Magnite during the 2nd quarter worth about $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.