Michael Barrett, CEO of Magnite, Inc. (NASDAQ:MGNI), recently sold 27,004 shares of common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $17.63, amounting to a total transaction value of approximately $476,080. This sale was conducted under a Rule 10b5-1 trading plan, which Barrett adopted earlier this year on March 2. Following the transaction, Barrett holds 782,910 shares directly. The sales were executed in multiple transactions, with prices ranging between $17.51 and $17.97.
In other recent news, Magnite reported solid growth in its Q3 2024 earnings call, demonstrating a significant increase in revenue and net income. Revenue for the quarter was $162 million, reflecting an 8% increase from the previous year. The company's adjusted EBITDA also grew by 26% to $51 million, while net income reached $5.2 million, a considerable improvement from a net loss of $17.5 million in Q3 2023.
Magnite's growth was primarily fueled by its Connected TV (CTV) segment, which experienced 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.
Looking ahead, Magnite projects continued growth in Q4, with a forecasted contribution ex-TAC ranging between $182 million and $186 million. The company has also raised its full-year growth expectations for contribution ex-TAC to 11-12%. Despite a decline in managed services, the company's strong performance in the CTV segment and strategic partnerships indicate positive recent developments for Magnite.
InvestingPro Insights
As we delve deeper into Magnite's financial landscape, recent data from InvestingPro sheds light on the company's performance and market position. Magnite's stock has shown remarkable strength, with a 100.6% price total return over the past year. This impressive performance is further underscored by the company's strong returns over shorter time frames, including a 33.84% return in the last month alone.
Despite the recent stock sale by CEO Michael Barrett, Magnite's financial health appears robust. The company boasts liquid assets that exceed short-term obligations, and it operates with a moderate level of debt. These factors contribute to financial stability, which is crucial in the dynamic digital advertising industry.
However, investors should note that Magnite is trading at a high P/E ratio of 133.71, significantly above industry averages. This valuation suggests that the market has high growth expectations for the company. An InvestingPro Tip indicates that Magnite is trading at a high earnings multiple, which aligns with the observed P/E ratio.
Another InvestingPro Tip highlights that net income is expected to grow this year, potentially justifying the premium valuation. This growth expectation is supported by the company's revenue growth of 8.71% over the last twelve months, with total revenue reaching $661.13 million.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips on Magnite, providing a deeper understanding of the company's financial position and market outlook.
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