MediaAlpha (NYSE:MAX) Shares Down 5.7% - Time to Sell?

Key Points

• MediaAlpha shares fell 5.7% to about $10.08, on trading volume 69% below the average daily level. The stock’s market capitalization is approximately $615 million.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $14.29, well above the current price.
• MediaAlpha reported quarterly EPS of $0.65, beating estimates by $0.42, while revenue of $316.88 million also exceeded expectations. Insiders sold shares valued at $4.8 million in the last quarter, primarily under pre-arranged plans to cover tax obligations.

MediaAlpha, Inc. (NYSE:MAX - Get Free Report) fell 5.7% during trading on Friday. The company traded as low as $10.11 and last traded at $10.0750. Approximately 246,075 shares changed hands during trading, a decline of 69% from the average daily volume of 786,286 shares. The stock had previously closed at $10.68.

Wall Street Analyst Weigh In

MAX has been the topic of several research reports. Keefe, Bruyette & Woods raised their price objective on shares of MediaAlpha from $15.00 to $17.00 and gave the company an "outperform" rating in a research report on Wednesday, July 8th. The Goldman Sachs Group boosted their target price on MediaAlpha from $10.00 to $14.00 and gave the stock a "neutral" rating in a research report on Thursday, July 30th. Canaccord Genuity Group upped their price target on shares of MediaAlpha from $15.00 to $17.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Weiss Ratings lowered shares of MediaAlpha from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, September 17th. Finally, Royal Bank Of Canada increased their target price on shares of MediaAlpha from $11.00 to $15.00 and gave the stock an "outperform" rating in a report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.29.

MediaAlpha Trading Down 6.0%

The firm has a market capitalization of $614.78 million, a PE ratio of 6.23 and a beta of 1.14. The firm has a 50-day moving average of $11.63 and a two-hundred day moving average of $10.87.

MediaAlpha (NYSE:MAX - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.42. MediaAlpha had a negative return on equity of 301.42% and a net margin of 7.94%.The company had revenue of $316.88 million for the quarter, compared to the consensus estimate of $300.87 million. Equities research analysts expect that MediaAlpha, Inc. will post 1.4 earnings per share for the current fiscal year.

Insider Transactions at MediaAlpha

In other MediaAlpha news, CTO Kuanling Yeh sold 3,000 shares of the business's stock in a transaction on Friday, September 25th. The shares were sold at an average price of $9.40, for a total transaction of $28,200.00. Following the sale, the chief technology officer directly owned 546,091 shares of the company's stock, valued at $5,133,255.40. The trade was a 0.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Eugene Nonko sold 6,667 shares of MediaAlpha stock in a transaction on Monday, September 21st. The shares were sold at an average price of $10.53, for a total value of $70,203.51. Following the transaction, the director directly owned 861,217 shares of the company's stock, valued at approximately $9,068,615.01. The trade was a 0.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 378,424 shares of company stock valued at $4,785,333 in the last quarter. 14.65% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MAX. Dimensional Fund Advisors LP increased its holdings in MediaAlpha by 94.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 620,669 shares of the company's stock valued at $5,773,000 after acquiring an additional 300,871 shares in the last quarter. Bank of America Corp DE increased its stake in MediaAlpha by 380.9% in the 1st quarter. Bank of America Corp DE now owns 279,704 shares of the company's stock valued at $2,601,000 after buying an additional 221,540 shares during the period. Jacobs Asset Management LLC lifted its holdings in shares of MediaAlpha by 31.1% during the first quarter. Jacobs Asset Management LLC now owns 924,443 shares of the company's stock worth $8,597,000 after buying an additional 219,144 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in MediaAlpha by 24.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,061,981 shares of the company's stock valued at $9,876,000 after purchasing an additional 206,077 shares in the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of MediaAlpha by 288.7% during the 1st quarter. Principal Financial Group Inc. now owns 137,613 shares of the company's stock worth $1,280,000 after buying an additional 102,210 shares during the period. 64.39% of the stock is currently owned by institutional investors.

About MediaAlpha

MediaAlpha, Inc NYSE: MAX operates a technology platform designed to help insurance companies and distributors acquire customers through digital channels. Its platform connects consumers who are shopping for insurance with providers and other distribution partners, using data, analytics and automated transactions to facilitate customer acquisition.

The company's services primarily support insurance shopping and marketing across categories such as auto, home, health and life insurance.

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