Shares of Magnite, Inc. (NASDAQ: MGNI) fell by 5.2% during trading on Monday, September 19, 2023, largely due to recent insider selling activity. The stock price dipped to a low of $24.52 and was last recorded at $24.57. A total of approximately 1,525,360 shares changed hands, marking a significant decline of 45% from the average daily volume of 2,767,855 shares. Prior to this downturn, the stock had closed at $25.92.
Insider transactions contributed to the decline. Notably, Paul Caine, a director at Magnite, sold 7,500 shares on September 19 at an average price of $25.00, netting a total of $187,500. Following this transaction, Caine’s remaining shares amounted to 158,603, valued at approximately $3,965,075, reflecting a 4.52% decrease in his position.
Similarly, insider Aaron Saltz sold 8,522 shares on the same day, achieving a total of $208,789 at an average price of $24.50. After this sale, Saltz retained 215,079 shares worth around $5,269,435.50, indicating a 3.81% reduction in his ownership.
Additional insider activity was noted when Saltz sold 6,180 shares on September 15 at an average price of $23.94, totaling $147,949.20. This transaction left him with 223,601 shares valued at approximately $5,353,007.94, a 2.69% decrease in his holding.
Analyst Ratings and Price Targets
In light of these insider sales, analysts have provided updated evaluations on Magnite’s stock. Rosenblatt Securities reaffirmed a “buy” rating with a price target of $39.00. Scotiabank also maintained an “outperform” rating, raising its target from $22.00 to $30.00. Additionally, Wells Fargo & Company adjusted its target price from $13.00 to $24.00, assigning an “equal weight” rating.
Other analysts, including Needham & Company LLC, increased their price objectives, with Needham setting a target of $25.00. In contrast, Wall Street Zen downgraded its rating from “buy” to “hold.” Overall, ten analysts currently rate the stock as a buy, while one has designated it as a hold, leading to a consensus rating of “Moderate Buy” and a price target of $25.82 according to data from MarketBeat.com.
Financial Performance and Institutional Holdings
Magnite reported its latest quarterly earnings on August 6, 2023, revealing earnings per share of $0.20, exceeding the consensus estimate of $0.17 by $0.03. The company’s revenue for the quarter reached $162.00 million, surpassing expectations of $157.05 million. The net margin stood at 6.30%, with a return on equity of 8.07%, representing a year-over-year revenue increase of 6.4%.
Significant changes in institutional holdings have also been observed. MCF Advisors LLC increased its position in Magnite by an impressive 2,100% during the first quarter, now holding 2,200 shares valued at $25,000. Other firms, including Smartleaf Asset Management LLC and GAMMA Investing LLC, also raised their stakes in the company.
Currently, institutional investors and hedge funds hold approximately 73.40% of Magnite’s stock. The company has a market capitalization of $3.49 billion, a P/E ratio of 85.10, and a debt-to-equity ratio of 0.45, indicating a strong financial position relative to its equity.
Magnite continues to operate as an independent omni-channel sell-side advertising platform, providing essential services for both digital advertising buyers and sellers across various media properties.
