Magnite (NASDAQ:MGNI) Shares Gap Down – Here’s Why

Magnite, Inc. (NASDAQ:MGNI) gapped down before the market opened on Tuesday . The stock had previously closed at $18.58, but opened at $17.96. Magnite shares last traded at $18.25, with a volume of 151,777 shares trading hands.

Wall Street Analysts Forecast Growth

MGNI has been the subject of several analyst reports. Royal Bank Of Canada reduced their target price on Magnite from $22.00 to $19.00 and set an “outperform” rating for the company in a report on Friday, May 2nd. Susquehanna lifted their target price on Magnite from $16.00 to $22.00 and gave the stock a “positive” rating in a research report on Thursday, February 27th. Rosenblatt Securities reissued a “buy” rating and issued a $18.00 price target on shares of Magnite in a report on Thursday, May 8th. Craig Hallum set a $24.00 target price on Magnite and gave the stock a “buy” rating in a report on Tuesday, May 20th. Finally, Needham & Company LLC increased their target price on shares of Magnite from $14.00 to $18.00 and gave the stock a “buy” rating in a research report on Monday, May 12th. One investment analyst has rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $19.58.

Magnite Price Performance

The business’s 50 day simple moving average is $14.49 and its 200-day simple moving average is $15.21. The stock has a market capitalization of $2.66 billion, a price-to-earnings ratio of 94.10, a P/E/G ratio of 1.49 and a beta of 2.87. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.47.

Magnite (NASDAQ:MGNI) last posted its earnings results on Wednesday, May 7th. The company reported $0.12 EPS for the quarter, beating the consensus estimate of $0.06 by $0.06. The firm had revenue of $145.85 million during the quarter, compared to the consensus estimate of $142.18 million. Magnite had a return on equity of 6.71% and a net margin of 4.58%. The business’s quarterly revenue was up 4.3% on a year-over-year basis. During the same period last year, the company earned $0.05 earnings per share. On average, research analysts forecast that Magnite, Inc. will post 0.33 earnings per share for the current year.

Insider Transactions at Magnite

In related news, CAO Brian Gephart sold 6,334 shares of the firm’s stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $16.16, for a total transaction of $102,357.44. Following the completion of the sale, the chief accounting officer now owns 126,575 shares in the company, valued at approximately $2,045,452. This trade represents a 4.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CTO David Buonasera sold 3,653 shares of the stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $15.03, for a total transaction of $54,904.59. Following the transaction, the chief technology officer now owns 267,444 shares of the company’s stock, valued at $4,019,683.32. This represents a 1.35% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 245,071 shares of company stock valued at $4,280,240 in the last quarter. 3.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Magnite

A number of large investors have recently modified their holdings of MGNI. Principal Financial Group Inc. lifted its holdings in shares of Magnite by 14.5% during the 4th quarter. Principal Financial Group Inc. now owns 123,073 shares of the company’s stock worth $1,959,000 after acquiring an additional 15,558 shares during the last quarter. Sanctuary Advisors LLC bought a new stake in Magnite in the fourth quarter valued at $335,000. Truist Financial Corp boosted its stake in shares of Magnite by 2.0% during the 4th quarter. Truist Financial Corp now owns 34,242 shares of the company’s stock valued at $545,000 after purchasing an additional 674 shares in the last quarter. Rice Hall James & Associates LLC bought a new position in Magnite in the fourth quarter worth $3,000,000. Finally, Handelsbanken Fonder AB grew its stake in shares of Magnite by 28.1% in the 4th quarter. Handelsbanken Fonder AB now owns 30,100 shares of the company’s stock worth $479,000 after buying an additional 6,600 shares during the last quarter. 73.40% of the stock is currently owned by institutional investors.

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.