Magnite (NASDAQ:MGNI) Shares Gap Up – Should You Buy?

Magnite, Inc. (NASDAQ:MGNI)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $15.32, but opened at $16.99. Magnite shares last traded at $16.23, with a volume of 545,259 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Royal Bank of Canada dropped their target price on Magnite from $22.00 to $19.00 and set an “outperform” rating on the stock in a research report on Friday, May 2nd. Benchmark dropped their price objective on shares of Magnite from $25.00 to $24.00 and set a “buy” rating on the stock in a report on Thursday, May 8th. Susquehanna boosted their target price on shares of Magnite from $16.00 to $22.00 and gave the company a “positive” rating in a research note on Thursday, February 27th. Lake Street Capital dropped their price target on shares of Magnite from $21.00 to $19.00 and set a “buy” rating on the stock in a research note on Thursday, May 8th. Finally, Needham & Company LLC boosted their price objective on Magnite from $14.00 to $18.00 and gave the stock a “buy” rating in a research report on Monday, May 12th. One analyst has rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. Based on data from MarketBeat, Magnite presently has a consensus rating of “Moderate Buy” and a consensus target price of $18.92.

Magnite Stock Up 4.2%

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.11 and a current ratio of 1.11. The company has a market cap of $2.25 billion, a P/E ratio of 266.92, a P/E/G ratio of 1.00 and a beta of 2.73. The stock has a 50 day moving average price of $12.19 and a 200 day moving average price of $15.01.

Magnite (NASDAQ:MGNI) last released its earnings results on Wednesday, May 7th. The company reported $0.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.06. Magnite had a return on equity of 4.64% and a net margin of 2.62%. The firm had revenue of $145.85 million for the quarter, compared to analyst estimates of $142.18 million. During the same period in the previous year, the company earned $0.05 earnings per share. Magnite’s revenue was up 4.3% compared to the same quarter last year. Research analysts expect that Magnite, Inc. will post 0.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Adam Lee Soroca sold 15,499 shares of Magnite stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $15.75, for a total value of $244,109.25. Following the transaction, the insider now directly owns 458,386 shares of the company’s stock, valued at $7,219,579.50. This trade represents a 3.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Sean Patrick Buckley sold 10,527 shares of the business’s stock in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $19.13, for a total transaction of $201,381.51. Following the sale, the insider now owns 370,558 shares in the company, valued at $7,088,774.54. This represents a 2.76% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 59,668 shares of company stock worth $979,091. Corporate insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Magnite

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Merit Financial Group LLC purchased a new stake in shares of Magnite in the fourth quarter worth approximately $586,000. Rice Hall James & Associates LLC bought a new stake in Magnite during the fourth quarter worth approximately $3,000,000. Jennison Associates LLC acquired a new position in Magnite in the 4th quarter valued at $818,000. JPMorgan Chase & Co. raised its holdings in Magnite by 5.9% in the 4th quarter. JPMorgan Chase & Co. now owns 1,511,439 shares of the company’s stock worth $24,062,000 after acquiring an additional 84,497 shares during the period. Finally, Penbrook Management LLC increased its stake in shares of Magnite by 60.8% in the fourth quarter. Penbrook Management LLC now owns 38,480 shares of the company’s stock worth $613,000 after purchasing an additional 14,550 shares during the period. Institutional investors and hedge funds own 73.40% of the company’s stock.

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.