Healthy Upside Potential: Magnite Inc. (MGNI)

Magnite Inc. (NASDAQ: MGNI) stock jumped 8.92% on Monday to $10.81 against a previous-day closing price of $9.93. With 1.76 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.94 million shares. During the session, the Advertising Agencies company that operates in wider Communication Services sector, reached to the highest price of $10.82 whereas the lowest price it dropped to was $9.90. The 52-week range on MGNI shows that it touched its highest point at $14.96 and its lowest point at $5.59 during that stretch. It currently has a 1-year price target of $14.15. Beta for the stock currently stands at 2.16.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MGNI was up-trending over the past week, with a rise of 8.97%, but this was down by -0.73% over a month. Three-month performance surged to 56.44% while six-month performance rose 31.99%. The stock lost -19.99% in the past year, while it has gained 2.08% so far this year. A look at the trailing 12-month EPS for MGNI yields -0.70 with Next year EPS estimates of 0.75. For the next quarter, that number is 0.32. This implies an EPS growth rate of 100.10% for this year and 3.45% for next year.

Float and Shares Shorts:

At present, 133.14 million MGNI shares are outstanding with a float of 117.93 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.74 million, which was 7.33% higher than short shares on Sep 14, 2022. In addition to Mr. Michael G. Barrett as the firm’s Pres, CEO & Director, Mr. David L. Day serves as its Chief Financial Officer.


Institutional Ownership:

Through their ownership of 66.76% of MGNI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 41.99% of MGNI, in contrast to 4.64% held by mutual funds. Shares owned by individuals account for 37.12%. As the largest shareholder in MGNI with 11.16% of the stake, Nuveen Asset Management LLC holds 14,888,182 shares worth 14,888,182. A second-largest stockholder of MGNI, The Vanguard Group, Inc., holds 11,774,290 shares, controlling over 8.83% of the firm’s shares. Granahan Investment Management, L is the third largest shareholder in MGNI, holding 10,417,962 shares or 7.81% stake. With a 3.69% stake in MGNI, the Fidelity Advisor Series I -Growth is the largest stakeholder. A total of 4,921,531 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.87% of MGNI stock, is the second-largest Mutual Fund holder. It holds 3,831,249 shares valued at 40.57 million. Vanguard Small Cap Index Fund holds 2.45% of the stake in MGNI, owning 3,265,091 shares worth 34.58 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MGNI since 11 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MGNI analysts setting a high price target of $17.00 and a low target of $11.00, the average target price over the next 12 months is $14.15. Based on these targets, MGNI could surge 57.26% to reach the target high and rise by 1.76% to reach the target low. Reaching the average price target will result in a growth of 30.9% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MGNI will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of $0.75 being high and $0.69 being low. For MGNI, this leads to a yearly average estimate of $0.72. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Magnite Inc. surprised analysts by $0.03 when it reported $0.18 EPS against a consensus estimate of $0.15. The surprise factor in the prior quarter was -$0.03. Based on analyst estimates, the high estimate for the next quarter is $0.35 and the low estimate is $0.28. The average estimate for the next quarter is thus $0.32.

Summary of Insider Activity:

Insiders traded MGNI stock several times over the past three months with 7 Buys and 9 Sells. In these transactions, 760,885 shares were bought while 141,857 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 1,788,843 while 387,697 shares were sold.

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