David Buonasera, the Chief Technology Officer of Magnite, Inc. (NASDAQ:MGNI), recently sold 9,219 shares of the company's common stock. The shares were sold at a price of $17 each, amounting to a total transaction value of $156,723. Following this transaction, Buonasera retains ownership of 226,195 shares in the company. The sale was conducted under a Rule 10b5-1 trading plan, which Buonasera adopted on August 15, 2024.
In other recent news, advertising technology firm Magnite reported a strong performance in its third quarter of 2024. The company's revenue increased by 8% to $162 million, while adjusted EBITDA grew by 26% to $51 million. Net income saw a significant turnaround, from a net loss of $17.5 million in Q3 2023 to a net income of $5.2 million. This growth was largely driven by Magnite's Connected TV (CTV) segment, which experienced a 23% year-over-year increase in contribution ex-TAC.
Additionally, Magnite extended its partnership with Disney (NYSE:DIS) for two more years, now encompassing live sports and additional regions. Despite a 20% decline in managed services, the company's outlook remains positive, forecasting a Q4 contribution ex-TAC between $182 million and $186 million. The full-year growth expectations for contribution ex-TAC are also raised to 11-12%.
Other noteworthy developments include the company's improved net leverage ratio to 0.9x and the repurchase of 2.9 million shares for $32 million. According to analyst notes, Magnite is well-positioned for further gains in share and spend on the DV+ platform as the macroeconomic environment improves.
InvestingPro Insights
As David Buonasera's recent stock sale catches attention, it's worth examining Magnite's current financial position and market performance. According to InvestingPro data, Magnite's market capitalization stands at $2.34 billion, reflecting its significant presence in the ad tech industry. The company's revenue for the last twelve months as of Q3 2024 reached $661.13 million, with a notable revenue growth of 8.71% over the same period.
Magnite's stock has shown remarkable strength, with a one-year price total return of 102.93% as of the latest data. This impressive performance aligns with an InvestingPro Tip indicating that Magnite has delivered a high return over the last year. Additionally, the stock's recent momentum is evident in its strong 33.12% return over the last month.
Despite the positive stock performance, investors should note that Magnite is trading at a high P/E ratio of 134.52, which an InvestingPro Tip flags as a high earnings multiple. This valuation metric suggests that the market has high growth expectations for the company, which could be related to its position in the rapidly evolving digital advertising landscape.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips on Magnite, providing a more comprehensive view of the company's financial health and market position. These insights can be particularly valuable when considering the context of insider transactions like Buonasera's recent sale.
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