Newsmax (NYSE:NMAX) Trading 10% Higher - Still a Buy?

Key Points

• Newsmax shares rose 10% to about $11.40, although trading volume was roughly 87% below the stock’s average daily volume.
• Analyst sentiment remains mixed: Newsmax has an overall “Hold” rating, a $23 consensus price target, and Weiss Ratings maintains a “Sell (e+)” rating.
• The company exceeded quarterly earnings expectations with EPS of $0.02 versus the forecasted loss of $0.03, but it remains unprofitable, reporting a negative net margin and analysts expecting a full-year loss.

Newsmax Inc. (NYSE:NMAX - Get Free Report)'s stock price was up 10% during trading on Tuesday . The company traded as high as $11.21 and last traded at $11.3970. Approximately 168,752 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 1,335,218 shares. The stock had previously closed at $10.36.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a "sell (e+)" rating on shares of Newsmax in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Newsmax presently has an average rating of "Hold" and a consensus target price of $23.00.

Newsmax Price Performance

The stock has a market cap of $1.44 billion, a PE ratio of -16.94 and a beta of 2.55. The business has a 50 day moving average price of $8.29 and a two-hundred day moving average price of $7.25.

Newsmax (NYSE:NMAX - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported $0.02 EPS for the quarter, topping the consensus estimate of ($0.03) by $0.05. The company had revenue of $54.12 million for the quarter. Newsmax had a negative net margin of 3.15% and a negative return on equity of 8.28%. On average, sell-side analysts forecast that Newsmax Inc. will post -0.07 earnings per share for the current fiscal year.

Institutional Trading of Newsmax

A number of institutional investors have recently modified their holdings of the company. Advisory Services Network LLC purchased a new position in Newsmax during the 3rd quarter valued at about $26,000. Osterweis Capital Management Inc. purchased a new stake in Newsmax in the 2nd quarter worth approximately $32,000. Smartleaf Asset Management LLC bought a new stake in shares of Newsmax in the 4th quarter worth approximately $32,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Newsmax in the 2nd quarter worth approximately $63,000. Finally, Tower Research Capital LLC TRC purchased a new position in shares of Newsmax during the second quarter valued at approximately $76,000.

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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