Texas Capital Upgrades MediaAlpha (NYSE:MAX) to Strong-Buy

Key Points

• Texas Capital upgraded MediaAlpha to “strong-buy”, adding to a mixed but generally positive analyst backdrop. MarketBeat says the stock now has an overall consensus rating of Moderate Buy with a $12.58 average price target.
• MediaAlpha recently reported Q1 earnings of $0.21 per share, missing estimates, but revenue came in above expectations at $310 million and rose 17.3% year over year. Analysts currently expect the company to earn about $1.02 per share this year.
• The stock was trading up 3.2% at $9.61, while insider selling and hedge fund activity also drew attention. Institutional investors own 64.39% of the company, and insiders own 14.65%.

MediaAlpha (NYSE:MAX - Get Free Report) was upgraded by equities research analysts at Texas Capital to a "strong-buy" rating in a report released on Tuesday,Zacks.com reports.

Several other brokerages have also issued reports on MAX. JPMorgan Chase & Co. lifted their price target on MediaAlpha from $11.00 to $12.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. Royal Bank Of Canada reduced their target price on MediaAlpha from $18.00 to $11.00 and set an "outperform" rating for the company in a report on Tuesday, February 24th. Keefe, Bruyette & Woods reduced their target price on MediaAlpha from $16.00 to $15.00 and set an "outperform" rating for the company in a report on Tuesday, April 7th. The Goldman Sachs Group reduced their target price on MediaAlpha from $13.50 to $11.50 and set a "neutral" rating for the company in a report on Tuesday, February 24th. Finally, Wall Street Zen lowered MediaAlpha from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 2nd. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $12.58.

MediaAlpha Trading Up 3.2%

Shares of MAX opened at $9.61 on Tuesday. The business's 50-day moving average price is $9.13 and its 200 day moving average price is $10.23. The stock has a market capitalization of $599.25 million, a P/E ratio of 15.02 and a beta of 1.16. MediaAlpha has a 1-year low of $7.09 and a 1-year high of $13.92.

MediaAlpha (NYSE:MAX - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.04). MediaAlpha had a net margin of 3.37% and a negative return on equity of 147.82%. The business had revenue of $310.00 million for the quarter, compared to analysts' expectations of $298.91 million. During the same period last year, the firm earned ($0.04) EPS. The company's revenue was up 17.3% compared to the same quarter last year. On average, research analysts predict that MediaAlpha will post 1.02 earnings per share for the current year.

Insider Transactions at MediaAlpha

In other news, General Counsel Jeffrey B. Coyne sold 5,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $8.10, for a total transaction of $40,500.00. Following the sale, the general counsel owned 591,764 shares in the company, valued at approximately $4,793,288.40. This represents a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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, insider Steven Yi sold 4,000 shares of the company's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $9.14, for a total value of $36,560.00. Following the transaction, the insider directly owned 2,879,690 shares in the company, valued at $26,320,366.60. This trade represents a 0.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 ninety days, insiders sold 459,940 shares of company stock valued at $4,512,545. 14.65% of the stock is owned by insiders.

Hedge Funds Weigh In On MediaAlpha

Several hedge funds have recently added to or reduced their stakes in MAX. Glenmede Trust Co. NA acquired a new stake in shares of MediaAlpha during the first quarter worth about $122,000. Bank of America Corp DE raised its position in shares of MediaAlpha by 380.9% during the first quarter. Bank of America Corp DE now owns 279,704 shares of the company's stock worth $2,601,000 after purchasing an additional 221,540 shares during the period. Amundi raised its position in shares of MediaAlpha by 33.2% during the first quarter. Amundi now owns 78,104 shares of the company's stock worth $726,000 after purchasing an additional 19,488 shares during the period. Stoic Point Capital Management LLC raised its position in shares of MediaAlpha by 6.6% during the first quarter. Stoic Point Capital Management LLC now owns 221,041 shares of the company's stock worth $2,056,000 after purchasing an additional 13,743 shares during the period. Finally, Quantinno Capital Management LP grew its holdings in shares of MediaAlpha by 150.9% during the first quarter. Quantinno Capital Management LP now owns 107,274 shares of the company's stock worth $998,000 after buying an additional 64,526 shares in the last quarter. Institutional investors and hedge funds own 64.39% of the company's stock.

MediaAlpha Company Profile

MediaAlpha, Inc is a technology company that operates a real-time digital marketplace for the distribution of insurance and adjacent services. The company's platform connects buyers—consumers seeking insurance policies—to sellers, including insurance carriers and distribution partners, through programmatic bidding and data-driven pricing. By leveraging transaction-level data and proprietary auction mechanics, MediaAlpha enables carriers to acquire customers more efficiently and at scale.

The firm offers a suite of products that help clients optimize marketing spend and improve conversion rates.

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