Newsmax (NYSE:NMAX) Shares Gap Up on Strong Earnings

Key Points

• Newsmax shares surged after earnings beat expectations: The stock opened at $9.25, up from its prior close of $7.29, and later traded near $9.82. Quarterly EPS was $0.12, versus analysts’ forecast of a $0.02 loss.
• Analyst views remain mixed: the reported consensus rating is Hold with a $10 price target, while recent ratings range from Buy to Sell.
• Despite the earnings beat, Newsmax reported a negative net margin and return on equity; recent reports also cite insider share sales.

Newsmax Inc. (NYSE:NMAX - Get Free Report)'s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $7.29, but opened at $9.25. Newsmax shares last traded at $9.8160, with a volume of 1,060,791 shares trading hands.

The company reported $0.12 earnings per share for the quarter, topping analysts' consensus estimates of ($0.02) by $0.14. The business had revenue of $55.00 million during the quarter. Newsmax had a negative net margin of 3.15% and a negative return on equity of 8.28%.

Top Newsmax Stories

Investors following NMAX have been watching these stories:

• Positive Sentiment: Newsmax reported Q3 revenue of $69 million, up 52.5% year over year and above the cited analyst estimate of $50.8 million. EPS was $0.12, versus expectations for a loss. The company also reported audience growth and stronger results amid heightened midterm-election interest. Q3 earnings results
• Neutral Sentiment: Another report says the company reaffirmed 2026 revenue guidance of $212 million–$216 million, which conflicts with the higher range cited elsewhere. Investors may want to verify the company’s guidance directly. Revenue guidance report
• Negative Sentiment: A third-party report noted 13 insider open-market sales and no purchases over the past six months, a potential source of investor caution. Insider trading information

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on NMAX. Freedom Capital raised Newsmax from a "hold" rating to a "buy" rating and set a $10.00 price objective for the company in a research report on Friday. Wall Street Zen lowered Newsmax from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Freedom Broker raised 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. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Newsmax in a report on Friday, October 2nd. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $10.00.

Insiders Place Their Bets

In other Newsmax news, major shareholder Conyers Investments Llc sold 282,063 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $11.55, for a total value of $3,257,827.65. Following the transaction, the insider owned 22,051,478 shares in the company, valued at approximately $254,694,570.90. This represents a 1.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last 90 days, insiders sold 494,886 shares of company stock worth $5,611,995. 61.03% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Newsmax

A number of institutional investors have recently modified their holdings of NMAX. Bank of New York Mellon Corp bought a new position in shares of Newsmax in the 2nd quarter worth $814,000. Great Lakes Advisors LLC bought a new stake in Newsmax during the 2nd quarter valued at $123,000. Entropy Technologies LP increased its stake in Newsmax by 54.7% during the 1st quarter. Entropy Technologies LP now owns 35,280 shares of the company's stock valued at $184,000 after purchasing an additional 12,480 shares in the last quarter. Arizona State Retirement System bought a new stake in Newsmax during the 2nd quarter valued at $98,000. Finally, NewEdge Advisors LLC raised its holdings in Newsmax by 49.7% during the second quarter. NewEdge Advisors LLC now owns 26,074 shares of the company's stock worth $216,000 after buying an additional 8,659 shares during the last quarter.

Newsmax Price Performance

The stock has a market cap of $1.27 billion, a price-to-earnings ratio of -196.32 and a beta of 2.71. The company's fifty day simple moving average is $9.47 and its two-hundred day simple moving average is $8.02.

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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