MediaAlpha (NYSE: MAX) received a significant upgrade from analysts at Zacks Research, moving from a “hold” rating to a “strong-buy” rating, as noted in a recent research note. This upgrade, issued on Tuesday, comes amid mixed reviews from other analysts regarding the stock’s performance.
Several analysts have expressed differing views on MediaAlpha. On Monday, Weiss Ratings maintained a “sell (d)” rating on the company’s shares. Conversely, on October 30, JPMorgan Chase & Co. raised its price target for MediaAlpha from $14.00 to $15.00, while giving it an “overweight” rating. Canaccord Genuity Group also reaffirmed a “buy” rating with a price objective of $15.00 on the same day.
Further assessments included a target price of $13.50 set by the Goldman Sachs Group on October 31. Additionally, Keefe, Bruyette & Woods increased their price target from $18.00 to $19.00, assigning an “outperform” rating. Currently, one analyst rates the stock as a strong buy, five analysts give it a buy rating, one rates it as hold, and another assigns a sell rating. According to MarketBeat, MediaAlpha holds a consensus rating of “Moderate Buy” with a target price averaging $17.25.
Earnings Report and Financial Overview
MediaAlpha announced its latest earnings on October 29, revealing earnings per share (EPS) of $0.26 for the quarter, exceeding the consensus estimate of $0.21 by $0.05. The company’s revenue reached $306.51 million, significantly surpassing the expected $283.30 million. Despite these positive results, MediaAlpha reported a negative net margin of 0.10% and a negative return on equity of 71.02%.
This quarter’s performance marked an 18.3% increase in revenue compared to the same period last year when the company earned $0.17 per share. Analysts predict that MediaAlpha will achieve an EPS of $0.48 for the current fiscal year.
Insider Transactions and Institutional Activity
In other developments, Director Eugene Nonko sold 5,400 shares of MediaAlpha on December 3, at an average price of $13.38, totaling $72,252. Following this sale, Nonko holds 1,079,248 shares valued at approximately $14.44 million, reflecting a decrease of 0.50% in his holdings.
Additionally, insider Steven Yi sold 8,000 shares on the same day for an average price of $13.37, amounting to $106,960. Yi now owns 2,927,330 shares, valued at roughly $39.14 million, a reduction of 0.27% in his position. In total, insiders sold 120,600 shares worth $1.49 million in the last quarter, with insiders currently owning 13.44% of the company’s stock.
Various institutional investors have recently adjusted their stakes in MediaAlpha. Jacobs Levy Equity Management Inc. increased its holdings by 19.4% during the third quarter, now owning 560,765 shares valued at $6.38 million. PharVision Advisers LLC acquired a new stake valued at approximately $279,000, while Virtus Advisers LLC boosted its position by 316.6%, now holding 18,711 shares worth $213,000.
Voleon Capital Management LP raised its stake by 77.8%, owning 32,090 shares valued at $365,000, and Quarry LP grew its ownership by 43.3%, now holding 4,087 shares worth $47,000. Collectively, institutional investors and hedge funds own 64.39% of MediaAlpha’s stock.
Headquartered in Los Angeles, California, MediaAlpha operates an insurance customer acquisition platform across various sectors, including property and casualty insurance, health insurance, and life insurance. Founded in 2014, the company continues to be a significant player in the insurance technology landscape.
