NEW YORK—Magnite, Inc. (NASDAQ:MGNI) recently disclosed that its Chief Product Officer, Adam Lee Soroca, sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Soroca sold 7,849 shares of common stock on November 18, 2024, at a weighted average price of $15.60 per share. This transaction was executed under a pre-established Rule 10b5-1 trading plan, resulting in a total sale value of approximately $122,444.
The filing also noted a prior transaction on November 15, 2024, where 6,805 shares were forfeited to cover tax withholding obligations related to the vesting of restricted stock units. Following these transactions, Soroca now directly owns 421,347 shares of Magnite.
These moves come as part of routine financial management and adherence to trading plans, and they provide insight into the executive's current stock holdings in the digital advertising technology company.
In other recent news, Magnite has reported significant growth in the third quarter of 2024, driven primarily by its Connected TV (CTV) segment. The company's total revenue for the quarter was $162 million, marking an 8% increase from the previous year, while adjusted EBITDA grew by 26% to $51 million. Net income also improved, reaching $5.2 million, a notable recovery from a net loss of $17.5 million in Q3 2023.
Furthermore, Magnite's CTV segment saw a 23% year-over-year increase in contribution ex-TAC. The company also announced a two-year extension of its partnership with Disney (NYSE:DIS), expanding their collaboration to include live sports and additional regions.
Despite a 20% decline in managed services, Magnite remains optimistic, expecting continued growth in the fourth quarter. The company's contribution ex-TAC is forecasted to range between $182 million and $186 million. These recent developments reflect Magnite's resilience and adaptability in the face of changing market conditions.
InvestingPro Insights
Magnite's recent stock performance and financial metrics offer additional context to the insider transaction reported. According to InvestingPro data, Magnite's stock has shown remarkable strength, with a 96.73% price total return over the past year and a 67.45% return year-to-date. This robust performance aligns with an InvestingPro Tip indicating that the stock has seen a "high return over the last year."
The company's financial health appears solid, with an InvestingPro Tip noting that "liquid assets exceed short term obligations," suggesting a strong balance sheet position. This financial stability may provide reassurance to investors in light of the executive's stock sale.
However, investors should also consider that Magnite is "trading at a high earnings multiple," as highlighted by another InvestingPro Tip. The company's P/E ratio stands at 129.03, which is considerably high and may indicate that the stock is priced for significant growth expectations.
For those seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Magnite, providing a deeper dive into the company's financial position and market outlook. These insights can be particularly valuable when evaluating insider transactions in the context of the company's overall performance and valuation.
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