MAGN

Magnera Corp ($MAGN) CEO Invests $284K After Stock Plunges 18% on Disappointing Q1 Results

05/09/2025 16:49

The CEO of small-cap Magnera Corp ($MAGN) has caught market attention by purchasing additional company shares following a sharp stock price decline triggered by disappointing quarterly results. Magnera Corp's stock plummeted approximately 18% in a single day after its quarterly earnings announcement on May 7, 2025. The company reported an adjusted loss of $1.15 per share for Q1 2025, significantly missing market expectations of $0.20 earnings per share. Revenue also fell short at $824 million, below analyst projections of $842 million. As a result, the company recorded a net loss of $41 million. This earnings report delivered another blow to Magnera's already declining stock price. Year-to-date, Magnera shares have fallen 16.5%, with a particularly pronounced downtrend beginning in early April. The stock has dropped from around $23 in mid-February 2025 to its current level of approximately $12. Notably, on May 9, immediately following the earnings announcement, Magnera's President Curt Begle stepped in to purchase company shares. Begle acquired 20,275 shares at an average price of $14.01, representing a total investment of $284,152. This transaction was made indirectly through The Curtis L. Begle 2022 Grantor Retained Annuity Trust, where The Crue Meisler Begle Trust is the beneficiary and Begle serves as trustee. This marks Begle's second share purchase this year. On February 11, he acquired 23,786 shares at an average price of $21.08, investing approximately $501,297. While the stock briefly rallied following that purchase, it subsequently resumed its downward trend. In a similar move, Magnera director Carl J. Rickertsen purchased 20,000 shares at $20.33 per share on February 27, investing about $406,532. These consecutive share purchases by company executives might signal internal confidence in the company's long-term value despite the stock decline. Interestingly, this contrasts with the massive selling by former major shareholder Carlson Capital LP from mid-2024. Carlson Capital sold over 36.93 million shares between late June and September 2024, totaling approximately $700 million. Particularly notable was the June 28, 2024 transaction, when they offloaded 29.41 million shares for $535.42 million in a single day. These sales likely contributed to the initial stock decline and may have set the stage for the ongoing weakness. Magnera Corp currently has a market capitalization of approximately $574 million. Despite the recent price decline, analysts maintain an average "buy" rating for the stock, with a median 12-month price target of $20 – suggesting a potential upside of about 60% from current levels. However, the recent quarterly results clearly illustrate the challenges facing the company. The $1.15 per share loss significantly underperformed expectations, indicating the company is struggling to regain profitability in the short term. Investors should closely monitor upcoming earnings reports and management's strategic responses. While recent insider buying may signal that executives view the company as undervalued at current prices, sustained stock recovery may prove difficult without improved financial performance. Investors would be wise to pay close attention to next quarter's results and any recovery strategies management might present.

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