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

MediaAlpha, Inc. (NYSE:MAX)’s share price gapped up prior to trading 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 changing hands.

The company reported $0.07 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.05. The business had revenue of $178.27 million during the quarter, compared to analyst estimates of $151.40 million. During the same period in the prior year, the firm posted ($0.32) EPS. MediaAlpha’s revenue for the quarter was up 110.3% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on MAX shares. TD Cowen cut shares of MediaAlpha from a “buy” rating to a “hold” rating and lowered their price target for the stock from $19.00 to $13.00 in a research report on Wednesday, June 26th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $25.00 price target (up previously from $19.00) on shares of MediaAlpha in a research note on Wednesday, May 15th. JPMorgan Chase & Co. lifted their price objective on MediaAlpha from $18.00 to $30.00 and gave the stock an “overweight” rating in a research note on Thursday, May 2nd. Canaccord Genuity Group raised their target price on MediaAlpha from $25.00 to $30.00 and gave the stock a “buy” rating in a report on Thursday, May 2nd. Finally, Royal Bank of Canada boosted their target price on MediaAlpha from $18.00 to $23.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 28th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $22.43.

Insider Buying and Selling

In other news, major shareholder Insignia Capital Partners Gp, sold 2,589,800 shares of the business’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $19.00, for a total value of $49,206,200.00. The sale was disclosed in a document filed with the SEC, which is accessible through this link. In other news, major shareholder Mountains Insurance Grou White sold 5,000,200 shares of the company’s stock in a transaction that occurred on Tuesday, May 7th. The stock was sold at an average price of $19.00, for a total transaction of $95,003,800.00. Following the sale, 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 at the SEC website. Also, major shareholder Insignia Capital Partners Gp, sold 2,589,800 shares of the stock in a transaction that occurred on Friday, May 10th. The shares were sold at an average price of $19.00, for a total value of $49,206,200.00. The disclosure for this sale can be found here. 11.53% of the stock is owned by corporate insiders.

Institutional Trading of MediaAlpha

A number of large investors have recently added to or reduced their stakes in MAX. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new stake in shares of MediaAlpha in the second quarter valued at approximately $225,000. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in MediaAlpha by 354.9% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,624 shares of the company’s stock valued at $114,000 after acquiring an additional 6,728 shares during the period. Bank of New York Mellon Corp lifted its holdings in MediaAlpha by 15.8% during the 2nd quarter. Bank of New York Mellon Corp now owns 84,155 shares of the company’s stock valued at $1,108,000 after purchasing an additional 11,503 shares during the last quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors boosted its position in MediaAlpha by 5.1% during the second quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 23,890 shares of the company’s stock worth $315,000 after purchasing an additional 1,150 shares during the period. Finally, Janus Henderson Group PLC acquired a new position in shares of MediaAlpha in the first quarter valued at $284,000. Institutional investors and hedge funds own 64.39% of the company’s stock.

MediaAlpha Stock Up 10.0 %

The company’s fifty day simple moving average is $15.38 and its 200 day simple moving average is $16.99. The stock has a market capitalization of $1.06 billion, a price-to-earnings ratio of -25.88 and a beta of 1.20.

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.