Brian Gephart, the Chief Accounting Officer of Magnite, Inc. (NASDAQ:MGNI), recently sold 2,156 shares of the company's common stock. The transaction, which took place on November 18, 2024, was part of a pre-established Rule 10b5-1 trading plan. The shares were sold at a weighted average price of $15.60, totaling approximately $33,633.
The sale follows a previous transaction on November 15, 2024, where 2,031 shares were forfeited to cover tax obligations linked to restricted stock units, at a price of $15.85 per share. After these transactions, Gephart holds 112,795 shares of Magnite.
In other recent news, Magnite has showcased strong growth and a positive outlook in Q3 2024. The company's earnings call revealed robust performance with total revenue reaching $162 million, an 8% increase from the previous year. The adjusted EBITDA also grew by 26% to $51 million, and net income was reported at $5.2 million, a significant recovery from a net loss of $17.5 million in Q3 2023.
Magnite's Connected TV (CTV) segment played a key role in this growth, witnessing a 23% year-over-year increase in contribution ex-TAC. The company also announced the extension of its partnership with Disney (NYSE:DIS) for two years, expanding to include live sports and additional regions.
Despite a decline in managed services, Magnite expects continued growth in Q4, forecasting a contribution ex-TAC between $182 million and $186 million. The full-year growth expectations for contribution ex-TAC have been raised to 11-12%. These recent developments reflect Magnite's strategic positioning and adaptability in the digital advertising landscape.
InvestingPro Insights
As Brian Gephart reduces his stake in Magnite, Inc. (NASDAQ:MGNI), investors may find additional context in the company's recent financial performance and market position. According to InvestingPro data, Magnite's market capitalization stands at $2.28 billion, reflecting its significant presence in the digital advertising technology sector.
The company's revenue growth of 8.71% over the last twelve months as of Q3 2024 indicates steady expansion, aligning with the broader trend in the digital advertising market. This growth is complemented by a robust gross profit margin of 60.51%, suggesting Magnite's ability to maintain pricing power in a competitive landscape.
InvestingPro Tips highlight that Magnite's stock has shown a strong return over the last year, with a remarkable 96.73% price total return. This performance may have influenced insider selling decisions, as the stock is currently trading near its 52-week high, with the price at 95.65% of its peak.
However, potential investors should note that Magnite is trading at a high P/E ratio of 129.03, which could indicate that the stock is priced for high growth expectations. This valuation metric, combined with the InvestingPro Tip that four analysts have revised their earnings downwards for the upcoming period, suggests a need for cautious analysis.
For those seeking a more comprehensive understanding of Magnite's financial health and market prospects, InvestingPro offers 13 additional tips, providing a deeper dive into the company's investment profile.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.