MediaAlpha (NYSE:MAX) Rating Lowered to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded MediaAlpha from “Strong Buy” to “Buy,” while the broader analyst consensus remains “Moderate Buy” with a $14.71 price target.
• Other analysts raised their price targets, including RBC to $17 and Canaccord Genuity to $18; Goldman Sachs also increased its target to $13 but maintained a “Neutral” rating.
• MediaAlpha’s latest quarterly results exceeded expectations, with earnings of $0.46 per share versus $0.28 expected and revenue of $375.95 million versus $347.93 million forecast.

MediaAlpha (NYSE:MAX - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other research firms have also issued reports on MAX. Royal Bank Of Canada lifted their price target on shares of MediaAlpha from $15.00 to $17.00 and gave the stock an "outperform" rating in a research report on Thursday. Canaccord Genuity Group lifted their target price on MediaAlpha from $17.00 to $18.00 and gave the company a "buy" rating in a research note on Thursday. The Goldman Sachs Group upped their target price on MediaAlpha from $10.50 to $13.00 and gave the company a "neutral" rating in a report on Thursday. Weiss Ratings raised shares of MediaAlpha from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Finally, Zacks Research cut shares of MediaAlpha from a "strong-buy" rating to a "hold" rating in a report on Wednesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.71.

MediaAlpha Stock Up 3.8%

Shares of MediaAlpha stock opened at $14.66 on Friday. The company has a current ratio of 1.32, a quick ratio of 1.29 and a debt-to-equity ratio of 8.49. The business's 50 day simple moving average is $11.27 and its 200-day simple moving average is $10.65. The stock has a market capitalization of $898.07 million, a price-to-earnings ratio of 8.05 and a beta of 1.14. MediaAlpha has a twelve month low of $7.09 and a twelve month high of $14.87.

MediaAlpha (NYSE:MAX - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.18. The firm had revenue of $375.95 million for the quarter, compared to the consensus estimate of $347.93 million. MediaAlpha had a net margin of 8.35% and a negative return on equity of 994.23%. Equities research analysts forecast that MediaAlpha will post 1.48 earnings per share for the current year.

Insider Transactions at MediaAlpha

In related news, insider Steven Yi sold 72,000 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $12.64, for a total value of $910,080.00. Following the completion of the sale, the insider owned 2,387,690 shares of the company's stock, valued at approximately $30,180,401.60. The trade was a 2.93% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Keith Cramer sold 13,000 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $12.76, for a total value of $165,880.00. Following the completion of the transaction, the executive owned 264,303 shares in the company, valued at $3,372,506.28. This represents a 4.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 425,550 shares of company stock valued at $5,148,791. 14.65% of the stock is currently owned by company insiders.

Institutional Trading of MediaAlpha

Several large investors have recently added to or reduced their stakes in MAX. Bank of America Corp DE increased its holdings in shares of MediaAlpha by 380.9% during the 1st quarter. Bank of America Corp DE now owns 279,704 shares of the company's stock valued at $2,601,000 after acquiring an additional 221,540 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of MediaAlpha by 94.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 620,669 shares of the company's stock valued at $5,773,000 after acquiring an additional 300,871 shares in the last quarter. Jacobs Asset Management LLC lifted its holdings in MediaAlpha by 31.1% in the 1st quarter. Jacobs Asset Management LLC now owns 924,443 shares of the company's stock worth $8,597,000 after purchasing an additional 219,144 shares during the last quarter. Globeflex Capital L P acquired a new stake in MediaAlpha in the 2nd quarter worth approximately $702,000. Finally, Principal Financial Group Inc. boosted its position in MediaAlpha by 288.7% during the first quarter. Principal Financial Group Inc. now owns 137,613 shares of the company's stock worth $1,280,000 after purchasing an additional 102,210 shares during the period. 64.39% of the stock is owned by institutional investors.

Key MediaAlpha News

Here are the key news stories impacting MediaAlpha this week:

• Positive Sentiment: Q4 guidance exceeded expectations: MediaAlpha forecast fourth-quarter 2026 revenue of $355 million to $375 million, well above the $328.8 million consensus estimate, while reiterating full-year free-cash-flow guidance of $90 million to $100 million. MediaAlpha Q4 revenue and free cash flow guidance
• Positive Sentiment: Strong Q3 performance: MediaAlpha reported adjusted earnings of $0.46 per share versus the $0.28 analyst estimate and revenue of $375.95 million versus the $347.93 million consensus. The results helped support the view that the company’s growth and profitability may be durable. MediaAlpha Q3 earnings and durability discussion
• Positive Sentiment: Analyst sentiment improved: Zacks upgraded MAX to Rank #2, or “Buy,” citing growing optimism about the company’s earnings prospects. Zacks upgrades MediaAlpha to Buy
• Positive Sentiment: JPMorgan raised its price target from $15 to $16, implying additional upside, although it maintained a Neutral rating. JPMorgan raises MediaAlpha price target
• Neutral Sentiment: The earnings call focused on whether recent growth can persist, including questions about customer demand, operating performance and the durability of MediaAlpha’s earnings momentum. Investors may continue to scrutinize these factors after the sharp rally. MediaAlpha Q3 earnings call analyst questions
• Negative Sentiment: Director Eugene Nonko sold shares in several transactions under a pre-arranged Rule 10b5-1 plan. The sales were made to cover tax withholding on vested equity awards and represent relatively small reductions, making them a limited—but potentially cautionary—signal.

About MediaAlpha

MediaAlpha, Inc operates a technology platform that helps insurance carriers and distributors acquire customers through digital channels. Its marketplace connects consumers who are shopping for insurance with providers seeking qualified prospects, using data, analytics and automated systems to facilitate the matching process.

The company's platform supports customer acquisition across insurance categories, including property and casualty products such as auto and home insurance, as well as health, life and Medicare-related coverage.

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