MediaAlpha (NYSE:MAX) Stock Price Up 3.9% - Should You Buy?

Key Points

• MediaAlpha shares rose 3.9% to about $10.05, although trading volume was roughly 85% below the average session volume.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $14.29, implying substantial upside.
• The company exceeded quarterly expectations, reporting $0.65 in earnings per share versus a $0.23 consensus estimate and revenue of $316.88 million; however, insiders have sold $4.8 million of stock over the past three months.

MediaAlpha, Inc. (NYSE:MAX - Get Free Report) shares were up 3.9% during mid-day trading on Thursday. The stock traded as high as $10.19 and last traded at $10.0510. Approximately 113,489 shares were traded during trading, a decline of 85% from the average session volume of 778,542 shares. The stock had previously closed at $9.67.

Analyst Ratings Changes

A number of brokerages recently commented on MAX. Weiss Ratings lowered MediaAlpha from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, September 17th. Canaccord Genuity Group raised their target price on shares of MediaAlpha from $15.00 to $17.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. assumed coverage on shares of MediaAlpha in a research report on Monday, August 24th. They set a "neutral" rating and a $15.00 price target for the company. Keefe, Bruyette & Woods boosted their price target on shares of MediaAlpha from $15.00 to $17.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 8th. Finally, Wall Street Zen upgraded shares of MediaAlpha from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 1st. Two investment 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, MediaAlpha presently has a consensus rating of "Moderate Buy" and an average price target of $14.29.

MediaAlpha Stock Performance

The company has a market capitalization of $635.27 million, a price-to-earnings ratio of 6.40 and a beta of 1.14. The company has a 50-day moving average price of $11.69 and a 200-day moving average price of $10.87.

MediaAlpha (NYSE:MAX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.65 earnings per share for the quarter, beating 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 business had revenue of $316.88 million for the quarter, compared to the consensus estimate of $300.87 million. As a group, sell-side analysts anticipate that MediaAlpha, Inc. will post 1.4 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Eugene Nonko sold 6,667 shares of the company's 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 completion of the sale, the director owned 861,217 shares in the company, valued at $9,068,615.01. This represents a 0.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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 the firm's 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 in the company, valued at $2,887,471.47. The trade was 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. Over the last three months, insiders have sold 378,424 shares of company stock worth $4,785,333. Company insiders own 14.65% of the company's stock.

Institutional Investors Weigh In On MediaAlpha

Several large investors have recently modified their holdings of the business. Triad Investment Management lifted its holdings in shares of MediaAlpha by 10.4% during the 2nd quarter. Triad Investment Management now owns 368,731 shares of the company's stock valued at $4,635,000 after purchasing an additional 34,867 shares in the last quarter. Squarepoint Ops LLC raised its holdings in MediaAlpha by 8.7% during the 2nd quarter. Squarepoint Ops LLC now owns 234,255 shares of the company's stock worth $2,945,000 after buying an additional 18,714 shares during the period. Corient Private Wealth LP raised its holdings in MediaAlpha by 50.7% during the 2nd quarter. Corient Private Wealth LP now owns 23,451 shares of the company's stock worth $295,000 after buying an additional 7,892 shares during the period. AXQ Capital LP bought a new position in MediaAlpha in the second quarter valued at approximately $316,000. Finally, Globeflex Capital L P acquired a new position in shares of MediaAlpha in the second quarter valued at approximately $702,000. 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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