Newsmax (NYSE:NMAX) Sees Strong Trading Volume - Still a Buy?

Key Points

• Newsmax saw unusually strong trading volume of 1,448,635 shares on Thursday (about 10% higher than the prior session) while the stock traded at $7.50, down from the previous close of $9.24.
• Analyst coverage is mixed: the consensus rating is a Hold with a $21.50 average price target, but Weiss Ratings recently reissued a sell (d-) on the shares.
• Fundamentals are weak—market cap ~$907.9M, negative P/E (-6.06), negative ROE and net margin, and analysts expect -0.19 EPS for the year—yet several large institutions materially increased their stakes in the quarter.

Newsmax Inc. (NYSE:NMAX - Get Free Report) shares saw unusually-strong trading volume on Thursday . Approximately 1,448,635 shares were traded during mid-day trading, an increase of 10% from the previous session's volume of 1,321,699 shares.The stock last traded at $7.50 and had previously closed at $9.24.

Wall Street Analysts Forecast Growth

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

Newsmax Stock Performance

The company has a 50 day moving average of $6.34 and a 200 day moving average of $7.89. The stock has a market capitalization of $907.85 million and a price-to-earnings ratio of -6.06.

Newsmax (NYSE:NMAX - Get Free Report) last announced its earnings results on Thursday, March 26th. The company reported $0.04 EPS for the quarter. Newsmax had a negative return on equity of 82.25% and a negative net margin of 52.57%.The company had revenue of $52.24 million during the quarter. On average, equities analysts predict that Newsmax Inc. will post -0.19 EPS for the current fiscal year.

Hedge Funds Weigh In On Newsmax

A number of hedge funds and other institutional investors have recently bought and sold shares of NMAX. Greenwich Wealth Management LLC purchased a new position in Newsmax during the 4th quarter valued at about $176,208,000. State Street Corp boosted its stake in shares of Newsmax by 520.9% in the 4th quarter. State Street Corp now owns 628,315 shares of the company's stock valued at $4,857,000 after buying an additional 527,126 shares during the period. Geode Capital Management LLC boosted its stake in shares of Newsmax by 329.1% in the 4th quarter. Geode Capital Management LLC now owns 574,465 shares of the company's stock valued at $4,441,000 after buying an additional 440,577 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Newsmax by 1,033.1% in the 4th quarter. Goldman Sachs Group Inc. now owns 458,679 shares of the company's stock valued at $3,546,000 after buying an additional 418,199 shares during the period. Finally, UBS Group AG boosted its stake in shares of Newsmax by 4,495.3% in the 4th quarter. UBS Group AG now owns 421,342 shares of the company's stock valued at $3,257,000 after buying an additional 412,173 shares during the period.

Newsmax Company Profile

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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