MediaAlpha (NYSE:MAX) Trading Down 4.4% - Should You Sell?

Key Points

• MediaAlpha shares fell 4.4% to $10.31 in midday trading, with volume down 84% from the average session level.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $14.29, implying potential upside from the trading price.
• The company exceeded quarterly expectations, reporting $0.65 in EPS versus a $0.23 estimate and revenue of $316.88 million versus $300.87 million expected.

MediaAlpha, Inc. (NYSE:MAX - Get Free Report)'s share price traded down 4.4% on Tuesday . The stock traded as low as $10.31 and last traded at $10.31. 122,734 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 761,469 shares. The stock had previously closed at $10.79.

Analyst Ratings Changes

Several equities research analysts have recently commented on MAX shares. Texas Capital raised MediaAlpha to a "strong-buy" rating in a report on Tuesday, June 9th. Keefe, Bruyette & Woods boosted their price objective on MediaAlpha from $15.00 to $17.00 and gave the stock an "outperform" rating in a report on Wednesday, July 8th. JPMorgan Chase & Co. began coverage on shares of MediaAlpha in a research note on Monday, August 24th. They set a "neutral" rating and a $15.00 price objective for the company. Wall Street Zen raised shares of MediaAlpha from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. Finally, Royal Bank Of Canada raised their price objective on shares of MediaAlpha from $11.00 to $15.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $14.29.

MediaAlpha Price Performance

The stock has a market capitalization of $613.83 million, a price-to-earnings ratio of 6.19 and a beta of 1.16. The stock's 50 day simple moving average is $12.71 and its 200-day simple moving average is $10.89.

MediaAlpha (NYSE:MAX - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.23 by $0.42. MediaAlpha had a net margin of 7.94% and a negative return on equity of 301.42%. The company had revenue of $316.88 million for the quarter, compared to the consensus estimate of $300.87 million. As a group, equities research analysts anticipate that MediaAlpha, Inc. will post 1.28 earnings per share for the current fiscal year.

Insider Buying and Selling at MediaAlpha

In other news, CTO Kuanling Yeh sold 3,000 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $12.00, for a total value of $36,000.00. Following the completion of the sale, the chief technology officer directly owned 549,091 shares of the company's stock, valued at $6,589,092. This represents a 0.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, 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 7,273 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $11.49, for a total transaction of $83,566.77. Following the completion of the sale, the director owned 875,157 shares in the company, valued at approximately $10,055,553.93. This trade represents a 0.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 a total of 618,468 shares of company stock worth $8,000,054 over the last quarter. 14.65% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MediaAlpha

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Triad Investment Management boosted its position in shares of MediaAlpha by 10.4% during the second quarter. Triad Investment Management now owns 368,731 shares of the company's stock worth $4,635,000 after buying an additional 34,867 shares during the period. Squarepoint Ops LLC lifted its stake in MediaAlpha by 8.7% in the 2nd quarter. Squarepoint Ops LLC now owns 234,255 shares of the company's stock valued at $2,945,000 after acquiring an additional 18,714 shares in the last quarter. Corient Private Wealth LP lifted its stake in MediaAlpha by 50.7% in the 2nd quarter. Corient Private Wealth LP now owns 23,451 shares of the company's stock valued at $295,000 after acquiring an additional 7,892 shares in the last quarter. AXQ Capital LP acquired a new position in MediaAlpha during the 2nd quarter worth approximately $316,000. Finally, Globeflex Capital L P acquired a new stake in shares of MediaAlpha in the second quarter valued at approximately $702,000. 64.39% of the stock is owned by institutional investors and hedge funds.

About MediaAlpha

MediaAlpha, Inc operates a technology platform that connects consumers seeking insurance and other financial products with providers seeking qualified customer leads. Its marketplace uses data, analytics and real-time bidding technology to help carriers, agencies and other distributors acquire customers across digital channels.

The company's platform primarily supports the marketing and distribution of insurance products, including property and casualty, health and life insurance. MediaAlpha provides tools for managing customer acquisition campaigns, matching consumer inquiries with relevant providers, and optimizing marketing performance across search, display and other online channels.

MediaAlpha was founded in 2014 and is headquartered in Los Angeles, California.

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