David Buonasera, the Chief Technology Officer of Magnite, Inc. (NASDAQ:MGNI), recently sold a portion of his holdings in the company. According to a recent SEC filing, Buonasera sold 277 shares of common stock on November 18, 2024, at a price of $15.77 per share, amounting to a total transaction value of $4,368.
Additionally, the filing notes a non-discretionary forfeiture of 5,056 shares on November 15, 2024, to cover tax withholding obligations related to the vesting of restricted stock units. Following these transactions, Buonasera holds 235,414 shares of Magnite. The sale was executed under a pre-established Rule 10b5-1 trading plan.
In other recent news, Magnite reported a strong performance in the third quarter of 2024, with total revenue reaching $162 million, marking an 8% increase from the previous year. The company's adjusted EBITDA also saw a 26% growth, reaching $51 million. A significant recovery was noted in net income, which reached $5.2 million, a considerable turnaround from the net loss of $17.5 million in Q3 2023.
Magnite's growth was primarily attributed to its Connected TV (CTV) segment, which experienced a 23% year-over-year increase in contribution ex-TAC, driven by significant ad spend growth and programmatic adoption. Additionally, Magnite extended its partnership with Disney (NYSE:DIS) for two more years, expanding to include live sports and additional regions.
The company also expressed positive expectations for the fourth quarter, predicting a contribution ex-TAC forecasted between $182 million and $186 million. Furthermore, full-year growth expectations for contribution ex-TAC were raised to 11-12%. Despite a 20% decline in managed services, Magnite remains well-positioned in the commerce media sector, focusing on travel and retail.
InvestingPro Insights
To provide context to David Buonasera's recent stock transactions, let's examine some key financial metrics and insights for Magnite (NASDAQ:MGNI) from InvestingPro.
Magnite's market capitalization currently stands at $2.28 billion, reflecting its position in the ad-tech industry. The company'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 trend aligns with an InvestingPro Tip indicating that net income is expected to grow this year, suggesting potential for improved financial performance.
The stock's recent performance has been notably strong, with a 96.73% price total return over the past year and a 67.45% return year-to-date. This impressive momentum is further highlighted by the stock trading at 95.65% of its 52-week high, indicating investor confidence in Magnite's prospects.
However, investors should note that Magnite is trading at a high P/E ratio of 129.03, which suggests a premium valuation compared to earnings. This is corroborated by an InvestingPro Tip stating that the company is trading at a high earnings multiple. While this could reflect market optimism about future growth, it also implies higher expectations for the company's performance.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips for Magnite, providing a comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.