MediaAlpha (NYSE:MAX) Shares Gap Up on Better-Than-Expected Earnings

MediaAlpha, Inc. (NYSE:MAX)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $14.67, but opened at $18.24. MediaAlpha shares last traded at $17.62, with a volume of 762,908 shares trading hands.

The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.05. The company had revenue of $178.27 million during the quarter, compared to analysts’ expectations of $151.40 million. The company’s quarterly revenue was up 110.3% on a year-over-year basis. During the same period in the prior year, the business posted ($0.32) EPS.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Canaccord Genuity Group increased their price objective on MediaAlpha from $25.00 to $30.00 and gave the company a “buy” rating in a report on Thursday, May 2nd. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $25.00 price target (up from $19.00) on shares of MediaAlpha in a research report on Wednesday, May 15th. TD Cowen downgraded shares of MediaAlpha from a “buy” rating to a “hold” rating and dropped their price objective for the company from $19.00 to $13.00 in a report on Wednesday, June 26th. JPMorgan Chase & Co. increased their price objective on shares of MediaAlpha from $18.00 to $30.00 and gave the stock an “overweight” rating in a research note on Thursday, May 2nd. Finally, Royal Bank of Canada boosted their target price on shares of MediaAlpha from $18.00 to $23.00 and gave the company an “outperform” rating in a research report on Tuesday, May 28th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and five have issued a buy rating to the stock. According to MarketBeat, MediaAlpha has an average rating of “Moderate Buy” and a consensus target price of $22.43.

Insider Activity at MediaAlpha

In related news, major shareholder Mountains Insurance Grou White sold 5,000,200 shares of MediaAlpha stock in a transaction dated Tuesday, May 7th. The stock was sold at an average price of $19.00, for a total value of $95,003,800.00. Following the completion of the transaction, the insider now owns 17,856,614 shares in the company, valued at approximately $339,275,666. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In other MediaAlpha news, major shareholder Insignia Capital Partners Gp, sold 2,589,800 shares of the company’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $19.00, for a total transaction of $49,206,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Mountains Insurance Grou White sold 5,000,200 shares of the stock in a transaction on Tuesday, May 7th. The shares were sold at an average price of $19.00, for a total transaction of $95,003,800.00. Following the transaction, the insider now directly owns 17,856,614 shares in the company, valued at $339,275,666. The disclosure for this sale can be found here. 11.53% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of MAX. Picton Mahoney Asset Management boosted its stake in shares of MediaAlpha by 211.2% in the fourth quarter. Picton Mahoney Asset Management now owns 20,480 shares of the company’s stock worth $229,000 after acquiring an additional 13,900 shares during the last quarter. Tower Research Capital LLC TRC lifted its holdings in MediaAlpha by 111.6% in the 4th quarter. Tower Research Capital LLC TRC now owns 4,442 shares of the company’s stock valued at $50,000 after purchasing an additional 2,343 shares in the last quarter. Nomura Holdings Inc. acquired a new stake in MediaAlpha during the 4th quarter worth $1,364,000. Los Angeles Capital Management LLC grew its holdings in shares of MediaAlpha by 125.8% during the first quarter. Los Angeles Capital Management LLC now owns 24,535 shares of the company’s stock worth $500,000 after buying an additional 13,670 shares in the last quarter. Finally, Norden Group LLC raised its position in shares of MediaAlpha by 1,767.2% in the first quarter. Norden Group LLC now owns 263,592 shares of the company’s stock valued at $5,369,000 after buying an additional 249,475 shares during the last quarter. Institutional investors and hedge funds own 64.39% of the company’s stock.

MediaAlpha Price Performance

The stock has a market capitalization of $1.06 billion, a PE ratio of -25.88 and a beta of 1.20. The company’s 50 day moving average price is $15.38 and its two-hundred day moving average price is $16.99.

About MediaAlpha

MediaAlpha, Inc, through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.