MediaAlpha (NYSE:MAX) Trading Down 7.1% - Should You Sell?

Key Points

• MediaAlpha's shares experienced a significant decline of 7.1%, trading as low as $10.10, amid low trading volume that was down 75% from the average.
• Multiple analysts have adjusted their price targets for MediaAlpha, with JPMorgan increasing it to $12.00, while Keefe, Bruyette & Woods decreased theirs to $16.00.
• The company's latest earnings report showed a revenue increase of 41.1% year-over-year, with earnings per share exceeding analysts' expectations at $0.17.

Shares of MediaAlpha, Inc. (NYSE:MAX - Get Free Report) dropped 7.1% during trading on Monday . The stock traded as low as $10.10 and last traded at $10.17. Approximately 124,800 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 492,470 shares. The stock had previously closed at $10.95.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MAX. JPMorgan Chase & Co. boosted 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. Wall Street Zen downgraded shares of MediaAlpha from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Keefe, Bruyette & Woods dropped their price objective on MediaAlpha from $19.00 to $16.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 22nd. Finally, Royal Bank Of Canada reduced their price objective on MediaAlpha from $20.00 to $18.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. One analyst has rated the stock with a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $17.92.

MediaAlpha Trading Down 1.6%

The firm's 50-day moving average price is $10.55 and its two-hundred day moving average price is $10.06. The stock has a market cap of $668.96 million, a PE ratio of -83.16 and a beta of 1.19.

MediaAlpha (NYSE:MAX - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. The company had revenue of $251.62 million during the quarter, compared to the consensus estimate of $248.80 million. MediaAlpha had a negative net margin of 0.61% and a negative return on equity of 62.53%. MediaAlpha's revenue for the quarter was up 41.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.07 earnings per share. On average, analysts anticipate that MediaAlpha, Inc. will post 0.48 earnings per share for the current year.

Insiders Place Their Bets

In related news, CRO Keith Cramer sold 20,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $9.73, for a total transaction of $194,600.00. Following the sale, the executive owned 167,200 shares of the company's stock, valued at $1,626,856. This trade represents a 10.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Kathy P. Vrabeck bought 31,000 shares of MediaAlpha stock in a transaction on Tuesday, August 12th. The stock was purchased at an average price of $9.60 per share, with a total value of $297,600.00. Following the completion of the acquisition, the director directly owned 129,657 shares of the company's stock, valued at $1,244,707.20. This represents a 31.42% increase in their position. The disclosure for this purchase can be found here. Insiders have sold a total of 29,669 shares of company stock valued at $297,873 over the last 90 days. 13.44% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MediaAlpha

Several institutional investors have recently bought and sold shares of MAX. Earnest Partners LLC lifted its holdings in shares of MediaAlpha by 0.4% during the fourth quarter. Earnest Partners LLC now owns 241,559 shares of the company's stock worth $2,727,000 after purchasing an additional 1,021 shares during the period. Intech Investment Management LLC raised its position in MediaAlpha by 6.4% during the 2nd quarter. Intech Investment Management LLC now owns 18,502 shares of the company's stock worth $203,000 after buying an additional 1,105 shares during the last quarter. Hsbc Holdings PLC lifted its stake in MediaAlpha by 2.3% during the 2nd quarter. Hsbc Holdings PLC now owns 51,550 shares of the company's stock valued at $561,000 after acquiring an additional 1,144 shares during the period. Tower Research Capital LLC TRC lifted its stake in MediaAlpha by 28.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,551 shares of the company's stock valued at $61,000 after acquiring an additional 1,213 shares during the period. Finally, Corton Capital Inc. boosted its holdings in shares of MediaAlpha by 8.2% in the 2nd quarter. Corton Capital Inc. now owns 18,865 shares of the company's stock valued at $207,000 after acquiring an additional 1,425 shares during the last quarter. 64.39% of the stock is currently owned by institutional investors and hedge funds.

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.