Magnite (NASDAQ:MGNI) Trading Down 5.1% - Time to Sell?

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.

Magnite, Inc. (NASDAQ:MGNI - Get Free Report)'s share price traded down 5.1% on Tuesday . The stock 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.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on MGNI shares. Wall Street Zen upgraded shares of Magnite from a "hold" rating to a "buy" rating in a report on Sunday, July 13th. Benchmark boosted their price objective on shares of Magnite from $30.00 to $31.00 and gave the company a "buy" rating in a research 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 stock an "equal weight" rating in a research report on Tuesday, July 8th. Scotiabank reiterated an "outperform" rating and set a $30.00 price objective (up from $22.00) on shares of Magnite in a research note on Thursday, August 7th. Finally, Needham & Company LLC boosted their price objective 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. Ten research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, Magnite has an average rating of "Moderate Buy" and an average target price of $25.82.

Magnite Price Performance

The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.45. The firm has a market capitalization of $3.31 billion, a P/E ratio of 80.06, a PEG ratio of 1.64 and a beta of 3.05. The stock has a fifty day moving average of $23.68 and a 200-day moving average of $17.89.

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

Insiders Place Their Bets

In related news, insider Adam Lee Soroca sold 44,519 shares of the stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $20.00, for a total transaction of $890,380.00. Following the sale, the insider owned 400,927 shares of the company's stock, valued at approximately $8,018,540. This represents a 9.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO David Day sold 38,146 shares of the stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $18.95, for a total value of $722,866.70. Following the transaction, the chief financial officer owned 443,528 shares in the company, valued at $8,404,855.60. This trade represents a 7.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,045,229 shares of company stock worth $22,477,319 in the last ninety days. Company insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MCF Advisors LLC increased its holdings in shares of Magnite by 2,100.0% in the 1st quarter. MCF Advisors LLC now owns 2,200 shares of the company's stock worth $25,000 after purchasing an additional 2,100 shares in the last quarter. Smartleaf Asset Management LLC grew its stake in Magnite by 74.9% in the first quarter. Smartleaf Asset Management LLC now owns 2,810 shares of the company's stock worth $33,000 after purchasing an additional 1,203 shares in the last quarter. GAMMA Investing LLC boosted its position in Magnite by 355.6% during the 2nd quarter. GAMMA Investing LLC now owns 1,517 shares of the company's stock valued at $37,000 after acquiring an additional 1,184 shares in the last quarter. AllSquare Wealth Management LLC boosted its position in shares of Magnite by 76.8% in the 1st quarter. AllSquare Wealth Management LLC now owns 3,580 shares of the company's stock worth $41,000 after purchasing an additional 1,555 shares in the last quarter. Finally, CWM LLC boosted its position in shares of Magnite by 133.6% in the 2nd quarter. CWM LLC now owns 1,775 shares of the company's stock worth $43,000 after purchasing an additional 1,015 shares in the last quarter. 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.

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