Needham has recently reiterated Magnite Inc (MGNI) stock to Buy rating, as announced on December 5, 2024, according to Finviz. Earlier, on December 5, 2024, Scotiabank had initiated the stock to Sector Outperform, setting a price target of $22. Wells Fargo also initiated Equal Weight rating with a price target of $13. Additionally, Lake Street initiated Buy rating on July 25, 2024, with a target price of $21. Wolfe Research analysts, in their report published on July 16, 2024, also initiated Outperform rating and set a price target of $16 for Magnite Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Magnite Inc (MGNI) Stock Trading Recap
On Thursday, Magnite Inc (MGNI) stock saw a decline, ending the day at $19.49 which represents a decrease of $-1.02 or -4.97% from the prior close of $20.51. The stock opened at $18.74 and touched a low of $17.31 during the day, reaching a high of $19.92. The volume of shares traded was 7.14 million exceeding the average volume of 1.95 million.
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MGNI Stock Performance and Moving Averages
In recent trading, Magnite Inc (MGNI) stock price has shown some volatility, fluctuating 1.83% over the last five trades and 24.62% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 55.67%, and it has gained 23.20% in the previous three months. Currently, MGNI is trading at 8.92%, 14.17%, and 38.33% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, MGNI, a Communication Services sector stock, is trading -8.45% below its 52-week high but remains 132.72% above its 52-week low. The Average True Range (ATR) (14 days) of 1.11 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Magnite Inc’s Profitability and Valuation Ratios
Magnite Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 6.96% and a profit margin of 2.62%, with a gross margin of 55.67%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Magnite Inc’s market capitalization stands at $2.74 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 169.63, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 21.02. Additionally, the Price-to-Sales Ratio is 4.15, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.79, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 3.39% of Magnite Inc (MGNI)’s shares, while financial institutions hold 89.37%.
Notable insider trades include Caine Paul, Director at Magnite Inc (MGNI), who sold 5000 shares on Feb 10 ’25, at $20.35 each, totaling $0.10 million. On Feb 07 ’25, Rossman James, Director, sold 149936 shares for $19.46 each, amounting to $2.92 million. Additionally, on Feb 07 ’25, Buckley Sean Patrick sold 18693 shares at $20 each, generating $0.37 million.
