MediaAlpha (NYSE:MAX) Shares Down 4.4% – Should You Sell?

Shares of MediaAlpha, Inc. (NYSE:MAX) dropped 4.4% during mid-day trading on Tuesday . The stock traded as low as $10.31 and last traded at $10.31. 122,734 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 761,469 shares. The stock had previously closed at $10.79.

Analysts Set New Price Targets

A number of research firms have recently commented on MAX. Weiss Ratings downgraded shares of MediaAlpha from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday. Royal Bank Of Canada raised their price target on MediaAlpha from $11.00 to $15.00 and gave the company an “outperform” rating in a research note on Wednesday, August 5th. JPMorgan Chase & Co. began coverage on MediaAlpha in a report on Monday, August 24th. They issued a “neutral” rating and a $15.00 price objective for the company. Canaccord Genuity Group boosted their target price on shares of MediaAlpha from $15.00 to $17.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, Wall Street Zen upgraded shares of MediaAlpha from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 1st. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, MediaAlpha has an average rating of “Moderate Buy” and a consensus price target of $14.29.

MediaAlpha Stock Down 7.1%

The company’s fifty day simple moving average is $12.71 and its 200 day simple moving average is $10.89. The stock has a market capitalization of $613.83 million, a price-to-earnings ratio of 6.19 and a beta of 1.16.

MediaAlpha (NYSE:MAX) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.42. The business had revenue of $316.88 million during the quarter, compared to analysts’ expectations of $300.87 million. MediaAlpha had a net margin of 7.94% and a negative return on equity of 301.42%. As a group, analysts anticipate that MediaAlpha, Inc. will post 1.28 earnings per share for the current year.

Insider Activity

In related news, Director Eugene Nonko sold 7,273 shares of MediaAlpha stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $11.49, for a total value of $83,566.77. Following the transaction, the director directly owned 875,157 shares of the company’s stock, valued at $10,055,553.93. This trade represents a 0.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Steven Yi sold 48,000 shares of the company’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $12.38, for a total value of $594,240.00. Following the sale, the insider owned 2,339,740 shares of the company’s stock, valued at $28,965,981.20. The trade was a 2.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 618,468 shares of company stock worth $8,000,054. Insiders own 14.65% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of MAX. Clearline Capital LP grew its holdings in shares of MediaAlpha by 0.8% during the 4th quarter. Clearline Capital LP now owns 1,301,453 shares of the company’s stock valued at $16,854,000 after purchasing an additional 10,604 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in MediaAlpha by 24.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,061,981 shares of the company’s stock valued at $9,876,000 after buying an additional 206,077 shares in the last quarter. Jacobs Asset Management LLC boosted its position in MediaAlpha by 31.1% in the first quarter. Jacobs Asset Management LLC now owns 924,443 shares of the company’s stock valued at $8,597,000 after buying an additional 219,144 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of MediaAlpha by 94.1% during the first quarter. Dimensional Fund Advisors LP now owns 620,669 shares of the company’s stock worth $5,773,000 after buying an additional 300,871 shares during the last quarter. Finally, Triad Investment Management grew its stake in shares of MediaAlpha by 10.4% during the second quarter. Triad Investment Management now owns 368,731 shares of the company’s stock worth $4,635,000 after buying an additional 34,867 shares during the last quarter. Institutional investors and hedge funds own 64.39% of the company’s stock.

About MediaAlpha

MediaAlpha, Inc operates a technology platform that connects consumers seeking insurance and other financial products with providers seeking qualified customer leads. Its marketplace uses data, analytics and real-time bidding technology to help carriers, agencies and other distributors acquire customers across digital channels.

The company’s platform primarily supports the marketing and distribution of insurance products, including property and casualty, health and life insurance. MediaAlpha provides tools for managing customer acquisition campaigns, matching consumer inquiries with relevant providers, and optimizing marketing performance across search, display and other online channels.

MediaAlpha was founded in 2014 and is headquartered in Los Angeles, California.