A look into Magnite Inc. (MGNI)’s deeper side

Magnite Inc. (NASDAQ: MGNI) stock jumped 1.55% on Wednesday to $11.81 against a previous-day closing price of $11.63. With 1.34 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.45 million shares. During the session, the Advertising Agencies company that operates in wider Communication Services sector, reached to the highest price of $11.88 whereas the lowest price it dropped to was $11.27. The 52-week range on MGNI shows that it touched its highest point at $14.20 and its lowest point at $5.59 during that stretch. It currently has a 1-year price target of $15.14. Beta for the stock currently stands at 2.11.

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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 8.45%, but this was up by 36.53% over a month. Three-month performance surged to 3.96% while six-month performance rose 16.24%. The stock gained 10.89% in the past year, while it has gained 11.52% so far this year. A look at the trailing 12-month EPS for MGNI yields -1.38 with Next year EPS estimates of 0.85. For the next quarter, that number is 0.03. This implies an EPS growth rate of -12.50% for this year and 52.60% for next year.

Float and Shares Shorts:

At present, 134.67 million MGNI shares are outstanding with a float of 117.93 million shares on hand for trading. On Apr 27, 2023, short shares totaled 8.11 million, which was 6.00% higher than short shares on Mar 30, 2023. 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 70.51% of MGNI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 4.54% of MGNI, in contrast to 39.57% held by mutual funds. Shares owned by individuals account for 34.15%. As the largest shareholder in MGNI with 9.05% of the stake, The Vanguard Group, Inc. holds 12,222,571 shares worth 12,222,571. A second-largest stockholder of MGNI, Granahan Investment Management, L, holds 9,133,115 shares, controlling over 6.76% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MGNI, holding 7,875,115 shares or 5.83% stake. With a 4.03% stake in MGNI, the Fidelity Advisor Series I -Growth is the largest stakeholder. A total of 5,444,931 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.94% of MGNI stock, is the second-largest Mutual Fund holder. It holds 3,969,800 shares valued at 37.32 million. Vanguard Small Cap Index Fund holds 2.48% of the stake in MGNI, owning 3,350,832 shares worth 31.5 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, MGNI reported revenue of $137.78M and operating income of -$22.55M. The EBITDA in the recently reported quarter was $20.33M and diluted EPS was -$0.19.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MGNI since 0 analysts follow the stock currently. 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 $18.00 and a low target of $11.00, the average target price over the next 12 months is $15.14. Based on these targets, MGNI could surge 52.41% to reach the target high and fall by -6.86% to reach the target low. Reaching the average price target will result in a growth of 28.2% 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.

Summary of Insider Activity:

Insiders traded MGNI stock several times over the past three months with 2 Buys and 3 Sells. In these transactions, 184,887 shares were bought while 222,898 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 32 over the past year. The total number of shares bought during that period was 1,110,662 while 530,530 shares were sold.

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