MediaAlpha, Inc. (NYSE:MAX) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately positive: Nine brokerages give MediaAlpha a consensus “Moderate Buy” rating, with five holds, three buys and one strong buy. The average 12-month price target is $14.29 versus the stock’s $12.02 opening price.
• MediaAlpha reported stronger-than-expected quarterly results, posting $0.65 in EPS versus the $0.23 consensus estimate and revenue of $316.88 million, ahead of expectations of $300.87 million.
• Institutional ownership stands at 64.39%, with several funds significantly increasing their positions, while insiders have sold $8.27 million worth of shares over the past 90 days, largely through pre-arranged plans to cover tax obligations.

MediaAlpha, Inc. (NYSE:MAX - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the nine ratings firms that are covering the stock, MarketBeat reports. Five research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $14.2857.

MAX has been the topic of a number of research reports. Texas Capital upgraded MediaAlpha to a "strong-buy" rating in a research report on Tuesday, June 9th. JPMorgan Chase & Co. started coverage on MediaAlpha in a report on Monday, August 24th. They issued a "neutral" rating and a $15.00 price objective for the company. Zacks Research upgraded MediaAlpha from a "strong sell" rating to a "hold" rating in a research report on Monday, August 24th. TD Cowen decreased their price objective on MediaAlpha from $13.00 to $11.00 and set a "hold" rating on the stock in a report on Tuesday, June 23rd. Finally, Weiss Ratings raised MediaAlpha from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, September 1st.

MediaAlpha Price Performance

MAX stock opened at $12.02 on Tuesday. MediaAlpha has a one year low of $7.09 and a one year high of $14.70. The stock has a market cap of $736.35 million, a PE ratio of 7.42 and a beta of 1.16. The firm has a 50 day simple moving average of $13.15 and a two-hundred day simple moving average of $10.73.

MediaAlpha (NYSE:MAX - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.42. MediaAlpha had a net margin of 7.94% and a negative return on equity of 301.42%. The firm had revenue of $316.88 million for the quarter, compared to analysts' expectations of $300.87 million. On average, research analysts expect that MediaAlpha will post 1.13 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Eugene Nonko sold 2,667 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $12.22, for a total transaction of $32,590.74. Following the transaction, the director owned 815,322 shares of the company's stock, valued at approximately $9,963,234.84. This trade represents a 0.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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, insider Steven Yi sold 48,000 shares of MediaAlpha stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $12.38, for a total transaction of $594,240.00. Following the completion of the transaction, the insider owned 2,339,740 shares in the company, valued at approximately $28,965,981.20. The trade was a 2.01% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 655,522 shares of company stock valued at $8,274,881 in the last ninety days. 14.65% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On MediaAlpha

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Millennium Management LLC increased its stake in shares of MediaAlpha by 680.9% in the third quarter. Millennium Management LLC now owns 1,429,556 shares of the company's stock worth $16,268,000 after buying an additional 1,246,493 shares during the period. Victory Capital Management Inc. boosted its position in MediaAlpha by 1,261.9% during the 3rd quarter. Victory Capital Management Inc. now owns 710,819 shares of the company's stock valued at $8,089,000 after buying an additional 658,625 shares during the period. Lazard Asset Management LLC bought a new stake in MediaAlpha in the 2nd quarter worth $4,268,000. Lighthouse Investment Partners LLC grew its holdings in MediaAlpha by 831.7% in the 3rd quarter. Lighthouse Investment Partners LLC now owns 353,930 shares of the company's stock worth $4,028,000 after acquiring an additional 315,943 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in MediaAlpha by 29.2% in the 4th quarter. JPMorgan Chase & Co. now owns 1,367,896 shares of the company's stock worth $17,714,000 after acquiring an additional 309,455 shares during the last quarter. Institutional investors own 64.39% of the company's stock.

About MediaAlpha

MediaAlpha, Inc is a technology company that operates a real-time digital marketplace for the distribution of insurance and adjacent services. The company's platform connects buyers—consumers seeking insurance policies—to sellers, including insurance carriers and distribution partners, through programmatic bidding and data-driven pricing. By leveraging transaction-level data and proprietary auction mechanics, MediaAlpha enables carriers to acquire customers more efficiently and at scale.

The firm offers a suite of products that help clients optimize marketing spend and improve conversion rates.

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