Magnite Stock Tanked 25% Last Quarter, but This Fund Still Bought Up $3 Million More in Shares

On February 17, 2026, Grizzlyrock Capital disclosed in a new SEC filing that it increased its position in Magnite (MGNI +2.32%) by 181,000 shares, with the estimated transaction value at $3.00 million based on quarterly average pricing.

What happened

According to a recent SEC filing, Grizzlyrock Capital added 181,000 shares of Magnite during the fourth quarter of 2025. The estimated transaction value, based on average closing prices for the quarter, was $3.00 million. The quarter-end value of the position increased by $768,101, a figure that includes both the impact of additional shares and any change in stock price. The fund reported holding 571,906 shares at year-end.

What else to know

• The position represents 6.95% of Grizzlyrock Capital’s 13F reportable assets under management as of December 31, 2025.
• Top holdings after the filing:
  • NASDAQ: GSM: $18.91 million (14.2% of AUM)
  • NYSE: GEL: $9.83 million (7.4% of AUM)
  • NASDAQ: EEFT: $9.61 million (7.2% of AUM)
  • NASDAQ: MGNI: $9.28 million (6.9% of AUM)
  • NYSE: AMN: $8.76 million (6.6% of AUM)
• As of February 17, 2026, MGNI shares were priced at $11.57, down 40.33% over the past year and underperforming the S&P 500 by 54.07 percentage points.

Company overview

Company snapshot

• Magnite provides a sell-side advertising platform that enables publishers to manage and monetize digital advertising inventory across connected TV (CTV), websites, and digital media properties.
• The company generates revenue primarily by facilitating programmatic ad transactions, charging fees to publishers and buyers for access to its technology and marketplace solutions.
• Main customers include digital publishers, CTV channel owners, advertisers, agencies, and demand-side platforms seeking to optimize digital advertising spend and inventory yield.

Magnite, Inc. is a leading independent sell-side advertising platform specializing in digital and connected TV inventory monetization. The company leverages a robust technology stack to connect digital publishers with advertisers, providing scale and efficiency in programmatic ad transactions. With a focus on innovation and a diversified customer base, Magnite positions itself as a key enabler in the evolving digital advertising ecosystem.

What this transaction means for investors

This move shows conviction when sentiment is washed out. Magnite shares fell 25% last quarter and were down more than 40% for the year as of mid-February, badly trailing the S&P 500. Adding during that kind of drawdown is not a momentum trade. Instead, it seems like a view that fundamentals are inflecting faster than the stock price suggests.

The latest results support that argument. Fourth quarter revenue rose 6% to $205 million, while Contribution ex TAC (gross profit plus cost of revenue, excluding traffic acquisition cost) increased 8% and 16%, excluding political spend. CTV was the standout, with Contribution ex TAC up 20% year over year and now representing 45% of the full year total. Management also authorized a new $200 million share repurchase program and expects at least 11% Contribution ex TAC growth in 2026.

Within a portfolio that already leans into cyclical and special situation names, this nearly 7% position is a meaningful bet on digital ad recovery and CTV share gains. Ultimately, if CTV keeps compounding and margins stay above 35%, as expected, today’s depressed multiple may not last.