Magnite (NASDAQ:MGNI) Shares Down 14.5% – Should You Sell?

Magnite, Inc. (NASDAQ:MGNI) dropped 14.5% on Tuesday . The company traded as low as $11.93 and last traded at $12.0260. Approximately 2,193,425 shares changed hands during trading, an increase of 3% from the average daily volume of 2,126,479 shares. The stock had previously closed at $14.06.

Analysts Set New Price Targets

MGNI has been the subject of several analyst reports. Wall Street Zen downgraded Magnite from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Benchmark reiterated a “buy” rating on shares of Magnite in a research note on Monday, January 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Magnite in a report on Thursday, January 22nd. Rosenblatt Securities restated a “buy” rating and issued a $39.00 target price on shares of Magnite in a research note on Thursday, November 6th. Finally, Wells Fargo & Company lowered their target price on shares of Magnite from $22.00 to $20.00 and set an “equal weight” rating on the stock in a report on Friday, November 7th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $27.00.

Magnite Trading Down 18.2%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.01 and a current ratio of 1.01. The stock has a market cap of $1.65 billion, a P/E ratio of 30.26, a P/E/G ratio of 0.79 and a beta of 2.39. The company has a 50-day simple moving average of $15.57 and a 200-day simple moving average of $19.01.

Magnite (NASDAQ:MGNI) last announced its earnings results on Wednesday, November 5th. The company reported $0.20 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.20. The company had revenue of $179.49 million during the quarter, compared to analyst estimates of $163.29 million. Magnite had a return on equity of 8.74% and a net margin of 8.25%.The firm’s quarterly revenue was up 11.6% compared to the same quarter last year. During the same period last year, the company posted $0.17 earnings per share. On average, sell-side analysts forecast that Magnite, Inc. will post 0.33 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Robert F. Spillane sold 12,500 shares of the business’s stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $14.22, for a total value of $177,750.00. Following the completion of the transaction, the director owned 53,917 shares in the company, valued at $766,699.74. The trade was a 18.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Adam Lee Soroca sold 16,656 shares of the company’s stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $17.00, for a total value of $283,152.00. Following the transaction, the insider directly owned 326,114 shares in the company, valued at approximately $5,543,938. This represents a 4.86% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 44,439 shares of company stock valued at $663,671. Insiders own 4.30% of the company’s stock.

Institutional Investors Weigh In On Magnite

Institutional investors and hedge funds have recently made changes to their positions in the company. Stephens Inc. AR increased its position in Magnite by 0.6% in the third quarter. Stephens Inc. AR now owns 83,468 shares of the company’s stock worth $1,818,000 after purchasing an additional 517 shares during the period. Smartleaf Asset Management LLC lifted its position in Magnite by 20.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 3,387 shares of the company’s stock valued at $82,000 after purchasing an additional 577 shares during the period. Winthrop Advisory Group LLC boosted its stake in shares of Magnite by 4.5% in the 2nd quarter. Winthrop Advisory Group LLC now owns 14,000 shares of the company’s stock valued at $338,000 after purchasing an additional 600 shares during the last quarter. US Bancorp DE boosted its stake in shares of Magnite by 75.8% in the 3rd quarter. US Bancorp DE now owns 1,596 shares of the company’s stock valued at $35,000 after purchasing an additional 688 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its position in shares of Magnite by 45.1% during the 3rd quarter. PNC Financial Services Group Inc. now owns 2,428 shares of the company’s stock worth $53,000 after buying an additional 755 shares during the period. Institutional investors own 73.40% of the company’s stock.

Magnite Company Profile

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).