MediaAlpha Inc. (NYSE:MAX) Reaches 52-Week Low After Earnings Report

Shares of MediaAlpha, Inc. (NYSE:MAX) dropped to a new 52-week low on Tuesday after the company announced disappointing earnings. During trading, the stock saw a low of $9.49 and concluded at $9.05, with a total volume of 518,414 shares changing hands. Prior to this, the stock had closed at $11.41.

For the latest quarter, MediaAlpha reported earnings of $0.08 per share, which fell short of analysts’ expectations of $0.24 by $0.16. In terms of revenue, the company brought in $300.65 million for the quarter, surpassing estimates that had expected $289.38 million. However, the company recorded a net margin of just 1.41% and a return on equity of -11.98%.

Analyst Ratings and Changes

Several financial research firms have recently provided their insights regarding MediaAlpha's stock. Keefe, Bruyette & Woods lowered their price target from $22.00 to $19.00 while maintaining an “outperform” rating. Canaccord Genuity Group reduced their price target from $30.00 to $26.00, also labeling the stock as a “buy.”

JPMorgan Chase & Co. cut their price target from $15.00 to $13.00 and kept an “overweight” rating. The Goldman Sachs Group revised their expectation down from $23.00 to $14.00, assigning a “buy” rating. Additionally, Royal Bank of Canada reaffirmed its “outperform” rating with a price target of $20.00. Currently, one investment analyst rates the stock as a hold, while five have provided a buy recommendation, resulting in a consensus rating of “Moderate Buy” with an average target of $17.50 according to MarketBeat.

Institutional Investor Activity

Recently, various hedge funds have adjusted their holdings in MediaAlpha. Vanguard Group Inc. increased its stake by 4.9%, owning 3,623,344 shares valued at approximately $40.91 million after acquiring an additional 169,654 shares. TimesSquare Capital Management LLC made a significant increase of 77.7%, now holding 1,628,815 shares valued at $18.39 million after purchasing an extra 712,410 shares.

Meanwhile, Clearline Capital LP raised its stake by 115.3%, with ownership of 1,241,419 shares valued at $22.48 million after adding 664,691 shares. Millennium Management LLC increased its stake by 91.0%, now holding 781,349 shares valued at $8.82 million after purchasing an additional 372,305 shares. Lastly, Geode Capital Management LLC increased its stake by 1.2%, now owning 698,703 shares valued at $7.89 million. Overall, institutional investors and hedge funds hold approximately 64.39% of MediaAlpha's stock.

Current Stock Performance

At present, MediaAlpha has a market capitalization of $603.31 million, a price-to-earnings ratio of 53.24, and a beta of 1.12. Its stock performances include a 50-day simple moving average of $11.45 and a 200-day simple moving average of $14.28.

About MediaAlpha

MediaAlpha, Inc. operates in the U.S. as an insurance customer acquisition platform, specializing in optimizing customer acquisition across various insurance sectors, including property and casualty, health, and life insurance. The company, founded in 2014, is headquartered in Los Angeles, California.

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