Magnite Inc. [NASDAQ: MGNI] price plunged by -7.27 percent to reach at -$3.58. The company report on March 16, 2021 that Magnite Announces Pricing of $350 Million Convertible Notes Offering.
Magnite (Nasdaq: MGNI) announced the pricing of $350 million aggregate principal amount of convertible senior notes due 2026 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”), and to non-U.S. persons in offshore transactions in reliance on Regulation S under the Act. Magnite also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $50 million aggregate principal amount of notes. The sale of the notes to the initial purchasers is expected to settle on March 18, 2021, subject to customary closing conditions, and is expected to result in approximately $340 million in net proceeds to Magnite after deducting the initial purchasers’ discount and estimated offering expenses payable by Magnite (assuming no exercise of the initial purchasers’ option to purchase additional notes). After giving effect to the cap price established in the capped call transactions described in more detail below entered into by Magnite concurrently with the pricing of the notes, the initial effective conversion price on the notes of $91.26 per share of Magnite common stock will represent a premium of approximately 100% over the last reported sale price of Magnite common stock of $45.63 per share on Nasdaq on March 15, 2021.
The notes will be senior, unsecured obligations of Magnite, and interest will be payable semi-annually in arrears. The notes will be convertible into cash, shares of Magnite’s common stock (“common stock”), or a combination thereof, at Magnite’s election. The notes will bear interest at a rate of 0.25% per year. Interest will be payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The notes will mature on March 15, 2026, unless earlier redeemed, repurchased or converted. Magnite may not redeem the notes prior to May 20, 2024. Magnite may redeem for cash all or any portion of the notes, at its option, on or after March 20, 2024, if the last reported sale price of Magnite’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which Magnite provides notice of redemption, during any 30 consecutive trading day period ending on and including the trading day preceding the date on which Magnite provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes, which means that Magnite is not required to redeem or retire the notes periodically.
A sum of 4254993 shares traded at recent session while its average daily volume was at 5.91M shares. Magnite Inc. shares reached a high of $47.89 and dropped to a low of $45.54 until finishing in the latest session at $45.63.
The one-year MGNI stock forecast points to a potential upside of 21.52. The average equity rating for MGNI stock is currently 1.90, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Magnite Inc. [MGNI]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MGNI shares is $58.14 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MGNI stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
B. Riley Securities have made an estimate for Magnite Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 28, 2021. While these analysts kept the previous recommendation, Truist raised their target price from $12 to $37. The new note on the price target was released on January 25, 2021, representing the official price target for Magnite Inc. stock. Previously, the target price had yet another raise from $25 to $45, while Craig Hallum kept a Buy rating on MGNI stock. On December 21, 2020, analysts increased their price target for MGNI shares from 18 to 30.
The Average True Range (ATR) for Magnite Inc. is set at 6.02, with the Price to Sales ratio for MGNI stock in the period of the last 12 months amounting to 24.01. The Price to Book ratio for the last quarter was 13.46, with the Price to Cash per share for the same quarter was set at 1.01.
MGNI Stock Performance Analysis:
Magnite Inc. [MGNI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 22.93. With this latest performance, MGNI shares dropped by -26.17% in over the last four-week period, additionally plugging by 703.35% over the last 6 months – not to mention a rise of 657.97% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MGNI stock in for the last two-week period is set at 48.90, with the RSI for the last a single of trading hit 47.32, and the three-weeks RSI is set at 50.95 for Magnite Inc. [MGNI]. The present Moving Average for the last 50 days of trading for this stock 42.80, while it was recorded at 46.42 for the last single week of trading, and 18.34 for the last 200 days.
Insight into Magnite Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Magnite Inc. [MGNI] shares currently have an operating margin of -16.55 and a Gross Margin at +58.44. Magnite Inc.’s Net Margin is presently recorded at -24.11.
Return on Total Capital for MGNI is now -13.14, given the latest momentum, and Return on Invested Capital for the company is -19.75. Return on Equity for this stock declined to -21.65, with Return on Assets sitting at -8.01. When it comes to the capital structure of this company, Magnite Inc. [MGNI] has a Total Debt to Total Equity ratio set at 11.03. Additionally, MGNI Total Debt to Total Capital is recorded at 9.93, with Total Debt to Total Assets ending up at 4.48. Long-Term Debt to Equity for the company is recorded at 8.46, with the Long-Term Debt to Total Capital now at 7.62.
Reflecting on the efficiency of the workforce at the company, Magnite Inc. [MGNI] managed to generate an average of -$93,905 per employee. Receivables Turnover for the company is 0.64 with a Total Asset Turnover recorded at a value of 0.33.Magnite Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.
MGNI Stock EPS
With the latest financial reports released by the company, Magnite Inc. posted -0.06/share EPS, while the average EPS was predicted by analysts to be reported at -0.06/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MGNI.
Magnite Inc. [MGNI] Insider Position Details
There are presently around $3,507 million, or 67.30% of MGNI stock, in the hands of institutional investors. The top three institutional holders of MGNI stocks are: BLACKROCK INC. with ownership of 8,030,030, which is approximately 7.715% of the company’s market cap and around 3.60% of the total institutional ownership; GRANAHAN INVESTMENT MANAGEMENT INC/MA, holding 6,715,157 shares of the stock with an approximate value of $306.41 million in MGNI stocks shares; and VANGUARD GROUP INC, currently with $239.83 million in MGNI stock with ownership of nearly 3.142% of the company’s market capitalization.
Positions in Magnite Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 152 institutional holders increased their position in Magnite Inc. [NASDAQ:MGNI] by around 27,318,512 shares. Additionally, 96 investors decreased positions by around 34,049,168 shares, while 17 investors held positions by with 15,478,995 shares. The mentioned changes placed institutional holdings at 76,846,675 shares, according to the latest SEC report filing. MGNI stock had 91 new institutional investments in for a total of 11,283,638 shares, while 30 institutional investors sold positions of 12,648,816 shares during the same period.