Newsmax Sees Unusually Large Options Volume (NYSE:NMAX)

Key Points

• Options activity surged: Investors bought 5,592 Newsmax call options, about 122% above the average daily volume.
• Shares rose to $9.38 during Friday trading, with volume of 3.17 million shares versus an average of 1.24 million. Newsmax also beat quarterly EPS estimates, reporting $0.12 per share against expectations of a $0.02 loss.
• Analyst views remain mixed: Recent upgrades set a $10 price target, but the overall consensus rating is Hold; insiders have sold nearly 495,000 shares in the past 90 days.

Newsmax Inc. (NYSE:NMAX - Get Free Report) was the recipient of some unusual options trading activity on Friday. Investors bought 5,592 call options on the company. This represents an increase of approximately 122% compared to the average daily volume of 2,519 call options.

Newsmax Price Performance

Newsmax stock traded up $2.09 during trading hours on Friday, hitting $9.38. The company had a trading volume of 3,168,672 shares, compared to its average volume of 1,242,017. The firm has a 50-day moving average of $9.47 and a 200 day moving average of $8.02. The firm has a market cap of $1.21 billion, a PE ratio of -187.04 and a beta of 2.71. Newsmax has a one year low of $5.11 and a one year high of $12.11.

Newsmax (NYSE:NMAX - Get Free Report) last issued its quarterly earnings data on Thursday, November 12th. The company reported $0.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.02) by $0.14. Newsmax had a negative return on equity of 8.28% and a negative net margin of 3.15%. The company had revenue of $55.00 million during the quarter. As a group, research analysts expect that Newsmax will post -0.02 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder Conyers Investments Llc sold 22,000 shares of Newsmax stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $11.07, for a total value of $243,540.00. Following the completion of the transaction, the insider owned 21,965,639 shares of the company's stock, valued at $243,159,623.73. This trade represents a 0.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders have sold a total of 494,886 shares of company stock valued at $5,611,995 in the last ninety days. Company insiders own 61.03% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp acquired a new stake in shares of Newsmax during the second quarter worth $814,000. Great Lakes Advisors LLC bought a new position in Newsmax during the second quarter worth about $123,000. Entropy Technologies LP raised its stake in Newsmax by 54.7% in the 1st quarter. Entropy Technologies LP now owns 35,280 shares of the company's stock worth $184,000 after purchasing an additional 12,480 shares in the last quarter. Arizona State Retirement System acquired a new stake in Newsmax in the 2nd quarter worth about $98,000. Finally, NewEdge Advisors LLC boosted its holdings in Newsmax by 49.7% in the 2nd quarter. NewEdge Advisors LLC now owns 26,074 shares of the company's stock valued at $216,000 after purchasing an additional 8,659 shares during the period.

Analyst Upgrades and Downgrades

NMAX has been the subject of several recent analyst reports. Wall Street Zen downgraded shares of Newsmax from a "buy" rating to a "hold" rating in a research note on Saturday, October 17th. Freedom Broker raised Newsmax from a "hold" rating to a "buy" rating and set a $10.00 price target on the stock in a research report on Friday. Weiss Ratings restated a "sell (e+)" rating on shares of Newsmax in a research note on Friday, October 2nd. Finally, Freedom Capital upgraded Newsmax from a "hold" rating to a "buy" rating and set a $10.00 target price for the company in a research note on Friday. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $10.00.

Key Headlines Impacting Newsmax

Investors following NMAX have been watching these headlines:

• Positive Sentiment: Freedom Broker upgraded NMAX from “hold” to “buy” and set a $10 price target, adding analyst support after the earnings release. Analyst upgrade
• Positive Sentiment: Call-option volume was reported at 5,592 contracts, 122% above its typical daily level, suggesting increased speculative interest in further gains. Options activity does not guarantee a price direction.
• Neutral Sentiment: Reports give different figures for 2026 revenue guidance: one says Newsmax reaffirmed a $212 million–$216 million range, while another says it updated guidance to $226 million–$230 million, above consensus. The discrepancy makes the outlook difficult to assess from these reports alone. Revenue guidance report

About Newsmax

Newsmax is a multimedia news company that produces and distributes news, opinion and lifestyle content. Its offerings include the Newsmax television network, digital news and video platforms, and print publications such as Newsmax magazine. Founded in 1998 by Christopher Ruddy, the company is based in Boca Raton, Florida. Ruddy serves as Newsmax's chief executive officer. Newsmax reaches audiences in the United States and abroad through television distribution and its digital platforms, which provide news coverage, commentary and other programming.

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