MediaAlpha (NYSE:MAX) Shares Gap Up After Earnings Beat

Key Points

• MediaAlpha shares surged from $10.35 to $12.20 after posting quarterly earnings of $0.17 per share, exceeding the expected $0.16.
• Revenue for the quarter totaled $251.62 million, representing a significant year-over-year increase of 41.1% compared to the previous year's earnings.
• Analysts maintain a consensus rating of "Buy" for MediaAlpha, with an average price target of $17.92, despite recent adjustments from several brokerage firms.

Shares of MediaAlpha, Inc. (NYSE:MAX - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $10.35, but opened at $12.20. MediaAlpha shares last traded at $10.87, with a volume of 184,537 shares changing hands.

The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.01. The business had revenue of $251.62 million during the quarter, compared to the consensus estimate of $248.80 million. MediaAlpha had a net margin of 1.58% and a negative return on equity of 46.92%. The firm's revenue for the quarter was up 41.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.07 earnings per share.

Analysts Set New Price Targets

Several brokerages recently issued reports on MAX. Royal Bank Of Canada reduced their price target on shares of MediaAlpha from $20.00 to $18.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 7th. The Goldman Sachs Group cut their price target on shares of MediaAlpha from $14.00 to $12.50 and set a "buy" rating on the stock in a report on Monday, April 14th. JPMorgan Chase & Co. increased their price objective on shares of MediaAlpha from $10.00 to $12.00 and gave the company an "overweight" rating in a research report on Thursday, May 1st. Finally, Keefe, Bruyette & Woods decreased their price target on shares of MediaAlpha from $19.00 to $16.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 22nd. Six investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, MediaAlpha currently has a consensus rating of "Buy" and an average target price of $17.92.

Institutional Investors Weigh In On MediaAlpha

Several large investors have recently modified their holdings of the business. GAMMA Investing LLC raised its stake in shares of MediaAlpha by 8,775.8% during the 1st quarter. GAMMA Investing LLC now owns 2,929 shares of the company's stock worth $27,000 after acquiring an additional 2,896 shares in the last quarter. Covestor Ltd raised its stake in shares of MediaAlpha by 44.1% during the 4th quarter. Covestor Ltd now owns 2,766 shares of the company's stock worth $31,000 after acquiring an additional 847 shares in the last quarter. Virtus Fund Advisers LLC bought a new position in shares of MediaAlpha during the 4th quarter worth approximately $35,000. Quarry LP raised its stake in shares of MediaAlpha by 107.1% during the 4th quarter. Quarry LP now owns 5,841 shares of the company's stock worth $66,000 after acquiring an additional 3,021 shares in the last quarter. Finally, KLP Kapitalforvaltning AS bought a new position in shares of MediaAlpha during the 4th quarter worth approximately $67,000. Institutional investors own 64.39% of the company's stock.

MediaAlpha Stock Performance

The stock has a market cap of $735.32 million, a P/E ratio of 39.10 and a beta of 1.19. The firm's 50 day moving average is $10.56 and its 200 day moving average is $10.10.

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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