MediaAlpha (NYSE:MAX) Shares Up 9.3% - Time to Buy?

Key Points

• MediaAlpha shares rose 9.3% to about $11.63 in Thursday trading, with volume below the average session level.
• Analyst sentiment is cautiously positive: the stock has a consensus “Moderate Buy” rating and an average price target of $13.79, though several firms recently lowered targets or maintained “Hold” ratings.
• The company exceeded quarterly expectations, reporting $0.65 in earnings per share versus a $0.23 estimate and revenue of $316.88 million versus $300.87 million expected. Institutional investors own 64.39% of the stock, while insiders have sold shares totaling about $5.2 million over the past 90 days.

Shares of MediaAlpha, Inc. (NYSE:MAX - Get Free Report) shot up 9.3% during trading on Thursday. The company traded as high as $11.56 and last traded at $11.6260. Approximately 536,479 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 788,576 shares. The stock had previously closed at $10.64.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. initiated coverage on shares of MediaAlpha in a research note on Monday, August 24th. They set a "neutral" rating and a $15.00 price objective on the stock. Zacks Research raised shares of MediaAlpha from a "hold" rating to a "strong-buy" rating in a report on Tuesday, September 22nd. The Goldman Sachs Group cut their target price on shares of MediaAlpha from $14.00 to $10.50 and set a "neutral" rating for the company in a research note on Wednesday. Weiss Ratings upgraded MediaAlpha from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Finally, TD Cowen reduced their price target on MediaAlpha from $13.00 to $11.00 and set a "hold" rating for the company in a report on Tuesday, June 23rd. Two research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.79.

MediaAlpha Stock Performance

The firm has a fifty day simple moving average of $11.46 and a 200-day simple moving average of $10.90. The firm has a market cap of $722.00 million, a price-to-earnings ratio of 7.28 and a beta of 1.14.

MediaAlpha (NYSE:MAX - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.65 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.42. MediaAlpha had a net margin of 7.94% and a negative return on equity of 301.42%. The firm had revenue of $316.88 million during the quarter, compared to analysts' expectations of $300.87 million. Analysts expect that MediaAlpha, Inc. will post 1.40 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 stock in a transaction on Friday, September 25th. The stock was sold at an average price of $9.40, for a total transaction of $28,200.00. Following the transaction, the chief technology officer owned 546,091 shares in the company, valued at $5,133,255.40. This trade represents a 0.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, CRO Keith Cramer sold 13,000 shares of MediaAlpha stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $11.49, for a total value of $149,370.00. Following the sale, the executive directly owned 251,303 shares of the company's stock, valued at $2,887,471.47. This represents a 4.92% decrease in their position. 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. In the last 90 days, insiders sold 419,925 shares of company stock valued at $5,207,410. 14.65% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On MediaAlpha

Hedge funds have recently bought and sold shares of the business. Clearline Capital LP raised its holdings in MediaAlpha by 0.8% in the 4th quarter. Clearline Capital LP now owns 1,301,453 shares of the company's stock valued at $16,854,000 after acquiring an additional 10,604 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of MediaAlpha by 24.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,061,981 shares of the company's stock worth $9,876,000 after purchasing an additional 206,077 shares in the last quarter. Jacobs Asset Management LLC grew its holdings in shares of MediaAlpha by 31.1% during the 1st quarter. Jacobs Asset Management LLC now owns 924,443 shares of the company's stock worth $8,597,000 after purchasing an additional 219,144 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of MediaAlpha by 94.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 620,669 shares of the company's stock worth $5,773,000 after purchasing an additional 300,871 shares in the last quarter. Finally, Triad Investment Management increased its position in shares of MediaAlpha by 10.4% in the second quarter. Triad Investment Management now owns 368,731 shares of the company's stock worth $4,635,000 after purchasing an additional 34,867 shares during the period. 64.39% of the stock is 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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