Magnite (NASDAQ:MGNI) Trading 6.5% Higher – Still a Buy?

Magnite, Inc. (NASDAQ:MGNI)’s share price shot up 6.5% during mid-day trading on Tuesday . The company traded as high as $17.98 and last traded at $17.8450. 2,052,703 shares changed hands during trading, a decline of 15% from the average session volume of 2,422,854 shares. The stock had previously closed at $16.75.

Key Magnite News

Here are the key news stories impacting Magnite this week:

• Positive Sentiment: Magnite announced a partnership with Viasat Aviation to bring programmatic advertising to in-flight screens, which could expand its connected-TV and digital advertising reach and create a new revenue stream. Magnite and Viasat Aviation Partner to Bring Programmatic Advertising to In-Flight Screens
• Positive Sentiment: Unusual call-option buying suggests traders are betting on further upside in Magnite shares, reinforcing bullish sentiment around the stock. Investors Purchase High Volume of Magnite Call Options (NASDAQ:MGNI)
• Positive Sentiment: Recent market coverage says MGNI has been on a multi-week winning streak, indicating momentum investors remain engaged even as some analysts flag mixed earnings-revision trends. MGNI stock eyes fifth week of gains: Magnite executives file plans to sell shares, but retail is unfazed
• Neutral Sentiment: Magnite’s recent strong session came on heavier volume, but analysts warned that recent earnings estimate revisions may limit near-term upside. Magnite (MGNI) Moves 10.8% Higher: Will This Strength Last?
• Negative Sentiment: Several insiders, including CEO Michael Barrett, CTO David Buonasera, and Director Douglas S. Knopper, disclosed sizable stock sales this week. While these may be routine or preplanned, insider selling can pressure sentiment and raise caution among investors.

Analyst Ratings Changes

MGNI has been the subject of a number of research reports. Benchmark reduced their price target on shares of Magnite from $31.00 to $30.00 and set a “buy” rating for the company in a report on Thursday, February 26th. Weiss Ratings upgraded shares of Magnite from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, May 11th. Evercore reissued an “outperform” rating and set a $21.00 price objective on shares of Magnite in a research report on Thursday, May 7th. Scotiabank raised their target price on Magnite from $16.00 to $17.00 and gave the company a “sector outperform” rating in a research note on Thursday, May 7th. Finally, BTIG Research assumed coverage on Magnite in a research report on Tuesday, June 9th. They issued a “buy” rating and a $20.00 target price for the company. Eight equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $23.89.

Magnite Trading Down 2.3%

The business has a fifty day moving average of $13.85 and a 200-day moving average of $13.94. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.02 and a current ratio of 1.02. The company has a market capitalization of $2.55 billion, a P/E ratio of 17.14, a PEG ratio of 0.88 and a beta of 2.32.

Magnite (NASDAQ:MGNI) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $0.13 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.02. Magnite had a net margin of 21.96% and a return on equity of 8.40%. The business had revenue of $164.37 million during the quarter, compared to analyst estimates of $159.24 million. During the same quarter in the previous year, the business posted $0.12 EPS. Magnite’s quarterly revenue was up 5.5% on a year-over-year basis. Analysts anticipate that Magnite, Inc. will post 0.6 earnings per share for the current fiscal year.

Insider Activity

In related news, Director David T. Pearson sold 10,766 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $15.65, for a total value of $168,487.90. Following the sale, the director owned 79,001 shares in the company, valued at $1,236,365.65. This represents a 11.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO David Buonasera sold 11,233 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $18.00, for a total transaction of $202,194.00. Following the completion of the transaction, the chief technology officer directly owned 280,494 shares in the company, valued at approximately $5,048,892. The trade was a 3.85% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 362,573 shares of company stock valued at $6,127,913. 3.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Magnite

Hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Magnite by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,847 shares of the company’s stock worth $854,000 after purchasing an additional 3,267 shares during the last quarter. Millennium Management LLC lifted its holdings in shares of Magnite by 113.7% in the first quarter. Millennium Management LLC now owns 434,479 shares of the company’s stock valued at $4,957,000 after purchasing an additional 231,213 shares in the last quarter. Jones Financial Companies Lllp boosted its position in shares of Magnite by 24.3% during the first quarter. Jones Financial Companies Lllp now owns 7,276 shares of the company’s stock valued at $83,000 after buying an additional 1,423 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Magnite by 9.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 404,717 shares of the company’s stock valued at $4,618,000 after buying an additional 36,097 shares during the last quarter. Finally, Intech Investment Management LLC grew its holdings in Magnite by 103.6% during the first quarter. Intech Investment Management LLC now owns 109,992 shares of the company’s stock worth $1,255,000 after buying an additional 55,971 shares in the last quarter. 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).