Newsmax (NYSE:NMAX) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Newsmax from “Buy” to “Hold”, while other firms have issued “Hold” and “Sell” ratings, giving the stock an overall “Reduce” consensus.
• Newsmax shares opened at $8.72, below their 50-day moving average of $10.41, while the company reported quarterly revenue of $54.12 million and earnings of $0.02 per share, above expectations.
• Insiders have been selling shares, including a 282,063-share sale by major shareholder Conyers Investments, while insiders still own approximately 61.03% of the company.

Newsmax (NYSE:NMAX - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

A number of other research firms have also issued reports on NMAX. Freedom Broker upgraded shares of Newsmax to a "hold" rating in a research note on Wednesday. Weiss Ratings reissued a "sell (e+)" rating on shares of Newsmax in a research report on Friday, October 2nd. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Newsmax currently has an average rating of "Reduce".

Newsmax Price Performance

Shares of NMAX stock opened at $8.72 on Friday. The stock's 50 day simple moving average is $10.41 and its 200 day simple moving average is $8.51. Newsmax has a twelve month low of $5.11 and a twelve month high of $12.11.

Newsmax (NYSE:NMAX - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported $0.02 EPS for the quarter, beating the consensus estimate of ($0.03) by $0.05. Newsmax had a negative return on equity of 8.28% and a negative net margin of 3.15%. The company had revenue of $54.12 million for the quarter. Analysts anticipate that Newsmax will post -0.02 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Newsmax news, major shareholder Conyers Investments Llc sold 282,063 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $11.55, for a total value of $3,257,827.65. Following the completion of the sale, the insider directly owned 22,051,478 shares of the company's stock, valued at $254,694,570.90. This represents a 1.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last ninety days, insiders have sold 494,886 shares of company stock worth $5,611,995. 61.03% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of New York Mellon Corp lifted its holdings in Newsmax by 5.0% during the 1st quarter. Bank of New York Mellon Corp now owns 110,775 shares of the company's stock valued at $578,000 after purchasing an additional 5,283 shares during the last quarter. Kestra Advisory Services LLC raised its stake in shares of Newsmax by 6.9% in the first quarter. Kestra Advisory Services LLC now owns 41,747 shares of the company's stock valued at $218,000 after acquiring an additional 2,697 shares during the last quarter. Cetera Investment Advisers raised its stake in shares of Newsmax by 5.1% in the first quarter. Cetera Investment Advisers now owns 35,302 shares of the company's stock valued at $184,000 after acquiring an additional 1,725 shares during the last quarter. Entropy Technologies LP boosted its holdings in shares of Newsmax by 54.7% in the 1st quarter. Entropy Technologies LP now owns 35,280 shares of the company's stock worth $184,000 after acquiring an additional 12,480 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Newsmax in the 4th quarter worth approximately $230,000.

Newsmax Company Profile

Newsmax, Inc is a media and communications company that operates Newsmax, a conservative news and information brand. Its businesses provide news, political commentary, analysis and lifestyle content through television, digital media and publishing platforms.

The company's principal properties include Newsmax TV, a news and opinion television network distributed through pay-TV providers and streaming services, and Newsmax.com, its online news and information platform. Newsmax also offers content through mobile and connected-device applications, email newsletters, podcasts and social media channels, along with magazine and publishing products.

Newsmax was founded in 1998 by Christopher Ruddy, who serves as the company's chief executive officer and chairman.

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