MediaAlpha (NYSE:MAX) Hits New 12-Month Low After Lackluster Earnings

On Tuesday, shares of MediaAlpha, Inc. (NYSE:MAX) hit a new 52-week low during trading, following an earnings report that fell short of expectations. The stock price hit a low of $9.49 before recovering slightly to close at $9.05, with a trading volume of 518,414 shares. Previously, the stock had closed at $11.41.

For the recent quarter, MediaAlpha reported earnings per share (EPS) of $0.08, which missed analysts' expectations of $0.24 by a significant margin of $0.16. The company did report revenues of $300.65 million, which surpassed analyst projections of $289.38 million. However, it recorded a net margin of just 1.41% and a negative return on equity of 11.98%.

Analyst Ratings Updates

MediaAlpha has been under review by several analysts lately. On Tuesday, Keefe, Bruyette & Woods lowered its price target for the stock from $22.00 to $19.00, maintaining an "outperform" rating. Meanwhile, JPMorgan Chase & Co. decreased its price target from $25.00 to $15.00, but still holds an "overweight" rating for MediaAlpha. Additionally, Royal Bank of Canada reduced their target from $23.00 to $20.00 and reiterated an "outperform" rating. The Goldman Sachs Group cut its price target from $26.00 to $23.00 while affirming a "buy" rating. Canaccord Genuity Group also decreased its target from $30.00 to $26.00 and maintained a "buy" stance. Out of a total of seven analysts, one issued a hold rating while six recommended a buy, resulting in an average rating of "Moderate Buy" with a target price of $20.57.

Investor Activity

Recent hedge fund activity regarding MediaAlpha shows some buying and selling. Covestor Ltd increased its holdings in the company by 44.1% in the fourth quarter, owning 2,766 shares valued at approximately $31,000 after acquiring 847 additional shares. Virtus Fund Advisers LLC also bought into MediaAlpha during the same period for about $35,000. Quarry LP raised its stake by 157.8% in the third quarter, now holding 2,820 shares worth $51,000. Other investors include KLP Kapitalforvaltning AS and Walleye Capital LLC, who both acquired new positions in the fourth quarter. Currently, institutional investors control about 64.39% of MediaAlpha's stock.

Stock Performance Overview

Currently, MediaAlpha is down 18.9% and has a 50-day simple moving average of $11.54 as well as a 200-day moving average of $14.35. The company's market cap stands at $616.71 million, with a P/E ratio of 53.06 and a beta value of 1.12.

About MediaAlpha

Founded in 2014, MediaAlpha, Inc. operates as a customer acquisition platform specifically focused on the insurance sector in the United States. The company optimizes the customer acquisition process across numerous verticals, including property, casualty, health, and life insurance, and is headquartered in Los Angeles, California.

MediaAlpha, Stocks, Earnings