Magnite (NASDAQ:MGNI) Reaches New 1-Year High – What’s Next?

Magnite, Inc. (NASDAQ:MGNI) shares reached a new 52-week high on Wednesday. The stock traded as high as $29.35 and last traded at $29.3240, with a volume of 98,289 shares changing hands. The stock had previously closed at $28.52.

Key Headlines Impacting Magnite

Here are a few of the latest headlines about MGNI:

• Positive Sentiment: Magnite’s recent results provide a growth backdrop: it beat quarterly EPS and revenue estimates, with revenue up 22.4% year over year. A report also points to a raised outlook, while another highlights the expanded Gracenote connected-TV deal as a potential source of value. Magnite stock and raised outlook Magnite and Gracenote deal expansion
• Neutral Sentiment: One valuation analysis says MGNI may be near fair value despite the raised outlook, tempering the more optimistic view that the expanded Gracenote deal leaves the shares undervalued. Magnite valuation analysis
• Negative Sentiment: SEC disclosures show multiple Magnite directors and executives sold shares in transactions dated November 9 and 11. Together, the reported sales totaled about 91,963 shares, worth approximately $2.67 million. The largest disclosed sale was by director James Rossman; CTO David Buonasera’s smaller sale was made under a pre-arranged trading plan. Insider selling can raise concerns about near-term sentiment, although sellers retained substantial holdings. Magnite insider sale report James Rossman SEC filing

Analyst Upgrades and Downgrades

MGNI has been the topic of several research reports. Craig Hallum reiterated a “buy” rating and set a $32.00 price objective on shares of Magnite in a report on Thursday, September 17th. Susquehanna raised their target price on Magnite from $30.00 to $35.00 and gave the company a “positive” rating in a research note on Thursday, November 5th. Wells Fargo & Company boosted their target price on Magnite from $22.00 to $23.00 and gave the company an “equal weight” rating in a research report on Thursday, November 5th. Benchmark upped their price target on Magnite from $30.00 to $33.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Finally, Needham & Company LLC increased their price target on Magnite from $25.00 to $30.00 and gave the stock a “buy” rating in a report on Thursday, September 3rd. Ten equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Magnite currently has a consensus rating of “Moderate Buy” and a consensus target price of $31.00.

Magnite Price Performance

The stock has a market capitalization of $4.21 billion, a P/E ratio of 24.66, a price-to-earnings-growth ratio of 0.97 and a beta of 2.44. The business’s 50 day simple moving average is $24.48 and its two-hundred day simple moving average is $18.13. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.36.

Magnite (NASDAQ:MGNI) last posted its earnings results on Wednesday, November 4th. The company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.29 by $0.04. Magnite had a net margin of 23.58% and a return on equity of 10.94%. The company had revenue of $204.20 million during the quarter, compared to the consensus estimate of $190.19 million. During the same period in the previous year, the firm posted $0.20 earnings per share. The firm’s revenue for the quarter was up 22.4% on a year-over-year basis. As a group, sell-side analysts forecast that Magnite, Inc. will post 0.62 earnings per share for the current fiscal year.

Insider Buying and Selling at Magnite

In other news, insider Aaron Saltz sold 40,000 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $23.41, for a total value of $936,400.00. Following the completion of the sale, the insider directly owned 224,389 shares of the company’s stock, valued at $5,252,946.49. This represents a 15.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Katie Evans sold 32,285 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $23.63, for a total value of $762,894.55. Following the completion of the sale, the insider directly owned 466,897 shares of the company’s stock, valued at approximately $11,032,776.11. This trade represents a 6.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 335,307 shares of company stock worth $8,608,807. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Meros Investment Management LP purchased a new stake in Magnite in the 2nd quarter valued at $18,815,538. Jupiter Topco LLC purchased a new position in Magnite during the 2nd quarter worth $1,109,000. WINTON GROUP Ltd purchased a new position in Magnite during the 2nd quarter worth $2,314,000. Legal & General Group Plc bought a new stake in shares of Magnite in the 2nd quarter worth $2,221,000. Finally, Manatuck Hill Partners LLC bought a new stake in shares of Magnite in the 2nd quarter worth $8,541,000. Hedge funds and other institutional investors own 73.40% of the company’s stock.

About Magnite

Magnite, Inc. operates a sell-side advertising platform that helps publishers, streaming services and app developers sell digital advertising inventory through programmatic auctions. Its technology connects those sellers with advertisers and their agencies seeking to buy ad placements. The company supports advertising across connected TV, online video, mobile applications and desktop formats. Its offerings include tools for managing and monetizing ad inventory, including streaming-focused ad-serving technology.