The journey of Magnite, Inc. (NASDAQ: MGNI) stock has not been smooth over the past year. According to TipRanks, MGNI stock has declined almost 22% over the last three months, 37.7% in the last six months, and over 52% year-to-date. Further, the stock has lost 72.2% in the last year.
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Shares of this New York-based tech company closed more than 4% down on Thursday but rebounded 2.1% in the extended trading session to end the day at $8.73.
Despite the volatility, retail investors are positive about the stock and have recently increased their stake in the company. Now, let’s learn more about the company, which commands a Strong Buy consensus rating.
What Does Magnite Do?
Magnite offers digital advertising solutions, which are used by publishers to make money from their content. Additionally, its sell-side ad platform is used by brands and agencies to gain access to ad inventory. The company was formed in 2020 through the merger of Telaria and Rubicon Project. Magnite has offices in the Asia Pacific region, Latin America, the EMEA, and North America.
Magnite to Announce Its Q2 Results Next Week
Magnite is scheduled to release its second-quarter results on August 9. The Street anticipates the company’s earnings to come in at 17 cents per share, compared to 11 cents per share in the same quarter last year.
The company anticipates second-quarter revenues to range from $123 million and $127 million. It expects CTV (connected TV) revenues between $51 million and $53 million.
Is MGNI a Buy or Sell?
Investors seem to be positively inclined towards MGNI stock. On TipRanks, MGNI stock commands a Strong Buy consensus rating, which is based on five Buys and one Hold. Magnite’s average price target of $16 implies upside potential of 87.1%.
The consensus rating is supported by Matthew Swanson of RBC Capital who recently reiterated a Buy rating on the stock. However, the analyst has lowered his price target on the stock to $21 from $22 (145.6% upside potential).
Craig-Hallum analyst Jason Kreyer, too, has a Buy rating on MGNI stock. He has reduced his price target from $25 to $16 (87.1% upside potential).
Just like analysts, retail investors on TipRanks are optimistic about the prospects of Magnite. TipRanks’ Stock Investors tool shows that 2.8% of investors on TipRanks increased their exposure to the stock over the past 30 days.
Is Magnite a Good Long-Term Investment Bet?
MGNI stock has lost more than 50% so far this year and is trading close to its all-time low price. Investors looking for long-term returns can consider this stock, as companies will restart spending on advertising as soon as the market stabilizes.
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