MediaAlpha (NYSE:MAX) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded MediaAlpha from “hold” to “strong sell,” adding fresh negative sentiment even as other analysts remain mixed on the stock.
• Wall Street’s view is still divided: MediaAlpha has a consensus rating of “Hold” with a consensus price target of $12.90, while recent calls ranged from JPMorgan’s “overweight” to Goldman Sachs’ “neutral.”
• The company reported Q1 EPS of $0.21, missing estimates, but revenue of $310 million beat expectations and rose 17.3% year over year.

MediaAlpha (NYSE:MAX - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

Other equities research analysts also recently issued reports about the stock. JPMorgan Chase & Co. boosted their price target on shares of MediaAlpha from $11.00 to $12.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. The Goldman Sachs Group cut their target price on shares of MediaAlpha from $13.50 to $11.50 and set a "neutral" rating on the stock in a research note on Tuesday, February 24th. Wall Street Zen downgraded shares of MediaAlpha from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 2nd. Weiss Ratings raised shares of MediaAlpha from a "sell (d)" rating to a "hold (c-)" rating in a research note on Wednesday, February 25th. Finally, Royal Bank Of Canada cut their target price on shares of MediaAlpha from $18.00 to $11.00 and set an "outperform" rating on the stock in a research note on Tuesday, February 24th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $12.90.

MediaAlpha Stock Performance

MediaAlpha stock opened at $8.37 on Tuesday. The company's 50 day simple moving average is $9.36 and its 200-day simple moving average is $10.63. The company has a market capitalization of $521.56 million, a price-to-earnings ratio of 13.07 and a beta of 1.16. MediaAlpha has a 1 year low of $7.09 and a 1 year high of $13.92.

MediaAlpha (NYSE:MAX - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $0.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.25 by ($0.04). The company had revenue of $310.00 million during the quarter, compared to analysts' expectations of $298.91 million. MediaAlpha had a net margin of 3.37% and a negative return on equity of 147.82%. MediaAlpha's revenue was up 17.3% on a year-over-year basis. During the same period last year, the firm posted ($0.04) earnings per share. Equities analysts expect that MediaAlpha will post 1.02 earnings per share for the current year.

Insider Activity

In related news, Director Eugene Nonko sold 25,606 shares of the company's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $10.01, for a total transaction of $256,316.06. Following the sale, the director directly owned 959,775 shares of the company's stock, valued at $9,607,347.75. This represents a 2.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 company's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $8.05, for a total transaction of $104,650.00. Following the sale, the executive directly owned 293,528 shares in the company, valued at approximately $2,362,900.40. The trade was a 4.24% decrease in their ownership of the stock. 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 682,897 shares of company stock worth $6,733,255 over the last 90 days. Company insiders own 14.65% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd grew its holdings in MediaAlpha by 5,900.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,160 shares of the company's stock worth $28,000 after acquiring an additional 2,124 shares in the last quarter. Rockefeller Capital Management L.P. grew its holdings in MediaAlpha by 9,917.9% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,805 shares of the company's stock worth $36,000 after acquiring an additional 2,777 shares in the last quarter. Strs Ohio acquired a new position in MediaAlpha during the 4th quarter worth approximately $49,000. Quarry LP grew its holdings in MediaAlpha by 43.3% during the 3rd quarter. Quarry LP now owns 4,087 shares of the company's stock worth $47,000 after acquiring an additional 1,234 shares in the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in MediaAlpha by 28.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,551 shares of the company's stock worth $61,000 after acquiring an additional 1,213 shares in the last quarter. Institutional investors and hedge funds own 64.39% of the company's stock.

MediaAlpha Company Profile

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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