Investors Buy High Volume of Call Options on Newsmax (NYSE:NMAX)

Key Points

• Investors bought 13,430 call options on Newsmax on Wednesday — about a 1,505% jump versus typical call volume — and the stock rose roughly 29.0% to $9.39 on heavy trading.
• Analyst views are mixed: MarketBeat's consensus is a Hold with a $21.50 target, while Weiss Ratings reaffirmed a sell (D-) rating.
• Fundamentals remain weak, with a market cap near $1.21 billion, a negative net margin of -52.57%, negative ROE, and sell-side forecasts of about -$0.19 EPS for the year.

Newsmax Inc. (NYSE:NMAX - Get Free Report) saw some unusual options trading activity on Wednesday. Investors purchased 13,430 call options on the stock. This is an increase of approximately 1,505% compared to the typical volume of 837 call options.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Newsmax in a research note on Friday, March 27th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Newsmax has a consensus rating of "Hold" and a consensus target price of $21.50.

Newsmax Stock Up 29.0%

Shares of Newsmax stock traded up $2.11 during mid-day trading on Wednesday, hitting $9.39. The stock had a trading volume of 2,961,073 shares, compared to its average volume of 942,147. The firm has a 50-day moving average of $6.28 and a two-hundred day moving average of $7.88. Newsmax has a 12-month low of $5.11 and a 12-month high of $27.49. The firm has a market cap of $1.21 billion and a P/E ratio of -8.17.

Newsmax (NYSE:NMAX - Get Free Report) last posted its quarterly earnings results on Thursday, March 26th. The company reported $0.04 earnings per share for the quarter. Newsmax had a negative net margin of 52.57% and a negative return on equity of 82.25%. The business had revenue of $52.24 million during the quarter. Sell-side analysts expect that Newsmax will post -0.19 earnings per share for the current year.

Institutional Investors Weigh In On Newsmax

Hedge funds and other institutional investors have recently modified their holdings of the company. Advisory Services Network LLC acquired a new stake in shares of Newsmax in the 3rd quarter valued at $26,000. Harbor Investment Advisory LLC raised its holdings in shares of Newsmax by 139.8% in the 3rd quarter. Harbor Investment Advisory LLC now owns 2,398 shares of the company's stock valued at $30,000 after purchasing an additional 1,398 shares in the last quarter. Osterweis Capital Management Inc. purchased a new position in shares of Newsmax in the 2nd quarter valued at $32,000. Smartleaf Asset Management LLC purchased a new position in Newsmax during the 4th quarter worth $32,000. Finally, Russell Investments Group Ltd. grew its position in Newsmax by 559.0% during the 4th quarter. Russell Investments Group Ltd. now owns 6,096 shares of the company's stock worth $47,000 after purchasing an additional 5,171 shares during the last quarter.

About Newsmax

Newsmax NYSE: NMAX is a diversified media company that produces and distributes conservative-oriented news, opinion and informational content. The company operates across multiple platforms, including a cable news channel, a digital streaming service, a website, a print magazine and various mobile applications. Newsmax focuses on delivering political coverage, financial analysis and cultural commentary to its audience.

Originally launched as a news website in 1998, Newsmax expanded into print with the debut of Newsmax magazine in 2003 and later launched its flagship cable network, Newsmax TV, in 2014.

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