Newsmax (NYSE:NMAX) Stock Price Up 16.1% - Time to Buy?

Key Points

• Stock rally: Newsmax shares jumped 16.1% intraday to about $8.45 on Wednesday, with 556,297 shares trading (roughly 40% below its average volume).
• Weak fundamentals: The company is unprofitable (negative net margin of 52.57% and negative ROE of 82.25%), has a negative P/E (-8.37) and a market cap of about $1.27 billion; last quarter EPS was $0.04 on $52.24 million revenue while analysts expect -0.19 EPS for the fiscal year.
• Mixed analyst view: MarketBeat shows a consensus "Hold" (average target $21.50) with two Buys, one Hold and one Sell, and Weiss Ratings recently reaffirmed a "sell (D-)" on the stock.

Newsmax Inc. (NYSE:NMAX - Get Free Report) traded up 16.1% during mid-day trading on Wednesday . The company traded as high as $8.00 and last traded at $8.4520. 556,297 shares traded hands during trading, a decline of 40% from the average session volume of 927,361 shares. The stock had previously closed at $7.28.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Newsmax in a report on Friday, March 27th. Two investment 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $21.50.

Newsmax Stock Up 35.0%

The firm has a market cap of $1.27 billion and a PE ratio of -8.37. The firm's fifty day simple moving average is $6.28 and its two-hundred day simple moving average is $7.88.

Newsmax (NYSE:NMAX - Get Free Report) last issued its quarterly earnings results on Thursday, March 26th. The company reported $0.04 earnings per share for the quarter. Newsmax had a negative net margin of 52.57% and a negative return on equity of 82.25%. The business had revenue of $52.24 million for the quarter. As a group, analysts anticipate that Newsmax Inc. will post -0.19 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Newsmax

Large investors have recently added to or reduced their stakes in the company. Advisory Services Network LLC purchased a new position in Newsmax during the third quarter valued at approximately $26,000. Osterweis Capital Management Inc. bought a new stake in shares of Newsmax during the second quarter valued at approximately $32,000. Harbor Investment Advisory LLC raised its position in shares of Newsmax by 139.8% during the third quarter. Harbor Investment Advisory LLC now owns 2,398 shares of the company's stock valued at $30,000 after buying an additional 1,398 shares during the last quarter. Smartleaf Asset Management LLC bought a new stake in shares of Newsmax during the fourth quarter valued at approximately $32,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Newsmax during the second quarter valued at approximately $63,000.

About Newsmax

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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