Magnite (NASDAQ:MGNI) Stock Price Expected to Rise, Scotiabank Analyst Says

Magnite (NASDAQ:MGNI) had its target price lifted by equities research analysts at Scotiabank from $16.00 to $17.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a “sector outperform” rating on the stock. Scotiabank’s target price would suggest a potential upside of 24.22% from the stock’s current price.

Several other research analysts have also recently commented on the company. Benchmark lowered their target price on Magnite from $31.00 to $30.00 and set a “buy” rating for the company in a research note on Thursday, February 26th. Royal Bank Of Canada cut their target price on shares of Magnite from $23.00 to $20.00 and set an “outperform” rating on the stock in a research note on Thursday. Evercore reiterated an “outperform” rating and issued a $21.00 price target on shares of Magnite in a research note on Thursday. Rosenblatt Securities restated a “buy” rating and issued a $39.00 price objective on shares of Magnite in a report on Thursday, February 26th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Magnite in a research note on Thursday, January 22nd. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Magnite presently has an average rating of “Moderate Buy” and a consensus target price of $23.60.

Magnite Stock Up 2.2%

Shares of MGNI traded up $0.30 during mid-day trading on Thursday, hitting $13.69. 3,755,948 shares of the company’s stock were exchanged, compared to its average volume of 2,284,632. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.02 and a current ratio of 1.02. The company has a market cap of $1.96 billion, a price-to-earnings ratio of 14.59, a P/E/G ratio of 0.84 and a beta of 2.33. The stock’s 50-day moving average is $12.70 and its 200-day moving average is $14.31. Magnite has a fifty-two week low of $10.82 and a fifty-two week high of $26.65.

Magnite (NASDAQ:MGNI) last released its earnings results on Wednesday, February 25th. The company reported $0.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.01). The business had revenue of $205.36 million for the quarter, compared to analyst estimates of $193.87 million. Magnite had a return on equity of 8.44% and a net margin of 20.25%.Magnite’s quarterly revenue was up 5.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.34 earnings per share. On average, sell-side analysts anticipate that Magnite will post 0.59 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Adam Lee Soroca sold 21,529 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $12.00, for a total transaction of $258,348.00. Following the completion of the sale, the insider owned 388,425 shares in the company, valued at approximately $4,661,100. The trade was a 5.25% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Magnite

Several large investors have recently bought and sold shares of the stock. Capital Research Global Investors grew its holdings in shares of Magnite by 85.0% during the fourth quarter. Capital Research Global Investors now owns 12,920,289 shares of the company’s stock worth $209,696,000 after purchasing an additional 5,937,428 shares during the last quarter. Wellington Management Group LLP increased its position in Magnite by 67.7% during the fourth quarter. Wellington Management Group LLP now owns 8,629,238 shares of the company’s stock worth $140,053,000 after buying an additional 3,484,689 shares during the period. Ophir Asset Management Pty Ltd purchased a new stake in Magnite in the fourth quarter valued at approximately $38,695,000. 325 Capital LLC boosted its holdings in shares of Magnite by 208.5% in the fourth quarter. 325 Capital LLC now owns 2,005,387 shares of the company’s stock valued at $32,547,000 after acquiring an additional 1,355,326 shares during the period. Finally, Blue Grotto Capital LLC grew its position in shares of Magnite by 443.8% during the third quarter. Blue Grotto Capital LLC now owns 1,548,796 shares of the company’s stock worth $33,733,000 after acquiring an additional 1,263,992 shares during the last quarter. Institutional investors and hedge funds own 73.40% of the company’s stock.

Magnite News Roundup

Here are the key news stories impacting Magnite this week:

• Positive Sentiment: Q1 EPS beat and solid profitability — Magnite reported non?GAAP EPS of $0.13, above the consensus range cited by many outlets (~$0.11). Adjusted EBITDA rose 16% year?over?year to $42.9M with a 27% margin, and operating cash flow was $23.3M. Q1 Results Press Release
• Positive Sentiment: Strong CTV momentum — Contribution ex?TAC from CTV grew 30% y/y to $82.3M and now represents over half of Contribution ex?TAC, signaling durable demand in the higher?growth CTV segment. Q1 Results Press Release
• Neutral Sentiment: Revenue and contribution metrics — Company revenue was $164.4M (up ~6% y/y) and Contribution ex?TAC was at the high end of guidance ($160.9M). Some outlets present slightly different consensus comparisons, creating mixed headlines. Press Release / Slide Deck
• Neutral Sentiment: Q2 and FY posture — Management guided Q2 Contribution ex?TAC to $177–181M (CTV $90–92M; DV+ $87–89M) and reaffirmed FY growth targets with a raised Adjusted EBITDA margin target (?35.5%) and stronger free cash flow growth. Guidance is largely in line with consensus, so it’s more confirmatory than a catalyst. Guidance Details
• Negative Sentiment: Mixed press and segment slippage — Some coverage framed Q1 sales as missing certain expectations (different analyst models), and Contribution ex?TAC from DV+ declined ~5% y/y despite beating its guidance range — a sign DV+ softness that could worry some investors. Yahoo: Sales Miss Headline

About Magnite

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).