MediaAlpha (NYSE:MAX) Shares Gap Down - What's Next?

Key Points

• MediaAlpha's shares gapped down, opening at $10.77 after a previous close of $11.21, and last traded at $10.62 with a trading volume of 78,159 shares.
• Analysts have mixed ratings on the stock, with Keefe, Bruyette & Woods upgrading the target price to $18.00, while Goldman Sachs lowered theirs to $12.00, indicating a consensus rating of "Moderate Buy".
• MediaAlpha reported a quarterly revenue of $251.62 million, exceeding analysts' expectations and up 41.1% year-over-year, despite a negative net margin of 0.61%.

MediaAlpha, Inc. (NYSE:MAX - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $11.21, but opened at $10.77. MediaAlpha shares last traded at $10.62, with a volume of 78,159 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Keefe, Bruyette & Woods lifted their price target on shares of MediaAlpha from $17.00 to $18.00 and gave the stock an "outperform" rating in a research note on Friday, September 5th. The Goldman Sachs Group restated a "neutral" rating and issued a $12.00 target price (down previously from $14.50) on shares of MediaAlpha in a report on Tuesday. Weiss Ratings reiterated a "sell (d-)" rating on shares of MediaAlpha in a research report on Wednesday, October 8th. Finally, Wall Street Zen downgraded MediaAlpha from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.17.

MediaAlpha Stock Performance

The stock has a market capitalization of $742.58 million, a PE ratio of -90.69 and a beta of 1.20. The stock has a 50-day moving average price of $11.34 and a two-hundred day moving average price of $10.35.

MediaAlpha (NYSE:MAX - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. MediaAlpha had a negative net margin of 0.61% and a negative return on equity of 62.53%. The company had revenue of $251.62 million for the quarter, compared to analysts' expectations of $248.80 million. During the same quarter last year, the business earned $0.07 EPS. The firm's revenue was up 41.1% compared to the same quarter last year. As a group, equities analysts predict that MediaAlpha, Inc. will post 0.48 earnings per share for the current year.

Insider Buying and Selling at MediaAlpha

In related news, CRO Keith Cramer sold 20,000 shares of the company's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $9.73, for a total value of $194,600.00. Following the completion of the transaction, the executive owned 167,200 shares of the company's stock, valued at approximately $1,626,856. This represents a 10.68% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Kathy P. Vrabeck bought 31,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was purchased at an average cost of $9.60 per share, with a total value of $297,600.00. Following the acquisition, the director directly owned 129,657 shares in the company, valued at $1,244,707.20. This trade represents a 31.42% increase in their position. The disclosure for this purchase can be found here. Insiders sold a total of 29,669 shares of company stock valued at $297,873 in the last ninety days. 11.53% of the stock is currently owned by insiders.

Institutional Trading of MediaAlpha

Several institutional investors and hedge funds have recently added to or reduced their stakes in MAX. GAMMA Investing LLC grew its holdings in MediaAlpha by 8,775.8% during the 1st quarter. GAMMA Investing LLC now owns 2,929 shares of the company's stock valued at $27,000 after buying an additional 2,896 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its position in shares of MediaAlpha by 54.2% during the first quarter. Allspring Global Investments Holdings LLC now owns 42,298 shares of the company's stock worth $381,000 after acquiring an additional 14,871 shares during the last quarter. Cerity Partners LLC bought a new position in shares of MediaAlpha during the first quarter worth $150,000. Arizona State Retirement System bought a new position in shares of MediaAlpha during the first quarter worth $95,000. Finally, CWM LLC lifted its stake in MediaAlpha by 151.8% in the 1st quarter. CWM LLC now owns 16,523 shares of the company's stock worth $153,000 after purchasing an additional 9,962 shares in the last quarter. Institutional investors own 64.39% of the company's stock.

MediaAlpha Company Profile

MediaAlpha, Inc, through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.

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