Sean Patrick Buckley, Chief Revenue Officer of Magnite, Inc. (NASDAQ:MGNI), recently sold shares of the company's common stock. According to a recent filing, Buckley sold 10,001 shares on November 18, 2024, at a weighted average price of $15.60, totaling approximately $156,015. This transaction was conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stocks, helping to avoid any allegations of insider trading.
Following the sale, Buckley holds 303,743 shares of Magnite. Prior to this, on November 15, 2024, 10,133 shares were forfeited to cover tax obligations related to the vesting of restricted stock units.
In other recent news, Magnite has reported a strong performance in Q3 2024, with significant growth in revenue and net income. The firm's total revenue for the quarter was $162 million, an 8% increase from the previous year, and adjusted EBITDA grew by 26% to $51 million. Net income reached $5.2 million, marking a substantial recovery from a net loss of $17.5 million in the same quarter of 2023.
This growth was primarily driven by Magnite's Connected TV (CTV) segment, which 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 to include live sports and additional regions.
In terms of future developments, Magnite anticipates continued growth in the fourth quarter, with a contribution ex-TAC forecasted between $182 million and $186 million. The company also raised its full-year growth expectations for contribution ex-TAC to 11-12%. These are among the 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 market capitalization stands at $2.28 billion, reflecting its significant presence in the digital advertising technology sector.
One of the key InvestingPro Tips highlights that Magnite's net income is expected to grow this year, which aligns with the company's recent stock performance. The stock has shown a remarkable 96.73% total return over the past year, indicating strong investor confidence. This positive momentum is further underscored by Magnite's robust revenue of $661.13 million in the last twelve months, with a notable revenue growth of 8.71% during the same period.
However, it's worth noting that Magnite is trading at a high P/E ratio of 129.03, suggesting that investors are pricing in substantial future growth. This valuation metric, combined with the InvestingPro Tip that the stock is trading at a high earnings multiple, indicates that investors should carefully consider the company's growth prospects in relation to its current market price.
For readers seeking a more comprehensive analysis, InvestingPro offers 17 additional tips on Magnite, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable when assessing the implications of insider transactions, such as the recent stock sale by the Chief Revenue Officer.
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