Magnite, Inc. (NASDAQ:MGNI) CEO Michael Barrett recently sold 100,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold on November 15 at a weighted average price of $16.14, amounting to a total transaction value of approximately $1.61 million. This sale was conducted under a pre-established Rule 10b5-1 trading plan, which Barrett adopted on March 2, 2023.
In addition to the sale, Barrett also had 9,638 shares forfeited to cover tax withholding obligations related to the vesting of restricted stock units. Following these transactions, Barrett holds 809,914 shares of Magnite.
These transactions provide a snapshot of the insider trading activity at Magnite, a company involved in the computer programming and data processing services sector. Investors often keep a close eye on such activities for potential insights into the company's future prospects.
In other recent news, advertising technology firm Magnite posted robust growth in its Q3 2024 earnings report, with a significant rise in revenue and net income. The company's growth was primarily propelled by its Connected TV (CTV) segment, which experienced considerable ad spend growth and programmatic adoption. Magnite's total revenue for the quarter reached $162 million, marking an 8% increase from the previous year, and adjusted EBITDA rose by 26% to $51 million. The firm also reported net income of $5.2 million, a marked improvement from a net loss of $17.5 million in Q3 2023.
In addition, Magnite announced an extension of its partnership with Disney (NYSE:DIS) for two years, expanding their collaboration to include live sports and additional regions. The company's CTV segment reported a 23% year-over-year increase in contribution ex-TAC. Despite a 20% decline in managed services due to agencies developing in-house programmatic capabilities, Magnite anticipates Q4 contribution ex-TAC to range from $182 million to $186 million.
These recent developments indicate a positive outlook for Magnite, with full-year growth expectations for contribution ex-TAC raised to 11-12%. The company also expects to be GAAP net income positive for the full year. However, it is important to note that the decline in managed services is expected to continue into Q4 due to the transition from managed services to programmatic platforms.
InvestingPro Insights
Magnite's recent stock performance and financial metrics provide additional context to CEO Michael Barrett's recent stock sale. According to InvestingPro data, Magnite's stock has shown impressive returns, with a 96.73% price total return over the past year and a 67.45% return year-to-date. This strong performance aligns with an InvestingPro Tip indicating that Magnite has delivered a high return over the last year.
The company's market capitalization stands at $2.28 billion, reflecting its position in the digital advertising technology space. Magnite's revenue for the last twelve months as of Q3 2024 was $661.13 million, with a revenue growth of 8.71% over the same period. This growth, coupled with a gross profit margin of 60.51%, suggests that Magnite is maintaining a solid financial position in its industry.
However, investors should note that Magnite is trading at a high P/E ratio of 129.03, which an InvestingPro Tip highlights as potentially overvalued relative to near-term earnings growth. This valuation metric could be a factor for investors to consider when assessing the stock's current price levels.
For those seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Magnite, providing a deeper dive into the company's financial health and market position. These insights can be particularly valuable for investors looking to understand the full picture behind insider transactions like Barrett's recent sale.
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