MediaAlpha (NYSE:MAX) Shares Gap Down on Insider Selling

Shares of MediaAlpha, Inc. (NYSE:MAX) gapped down before the market opened on Thursday following insider selling activity. The stock had previously closed at $10.76, but opened at $10.34. MediaAlpha shares last traded at $10.7970, with a volume of 97,758 shares trading hands.

Specifically, Director Eugene Nonko sold 6,667 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $10.47, for a total transaction of $69,803.49. Following the completion of the transaction, the director directly owned 1,187,271 shares in the company, valued at $12,430,727.37. The trade was a 0.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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, Director Eugene Nonko sold 6,667 shares of the company’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $10.15, for a total value of $67,670.05. Following the sale, the director owned 1,200,605 shares of the company’s stock, valued at $12,186,140.75. The trade was a 0.55% 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.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on MAX shares. Texas Capital upgraded MediaAlpha to a “strong-buy” rating in a research note on Tuesday, June 9th. TD Cowen dropped their price objective on MediaAlpha from $13.00 to $11.00 and set a “hold” rating for the company in a research report on Tuesday. Capital One Financial set a $11.00 price objective on MediaAlpha in a research note on Tuesday, June 9th. Keefe, Bruyette & Woods decreased their target price on MediaAlpha from $16.00 to $15.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 7th. Finally, Zacks Research downgraded MediaAlpha from a “hold” rating to a “strong sell” rating in a research note on Tuesday, May 19th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $12.36.

Key Headlines Impacting MediaAlpha

Here are the key news stories impacting MediaAlpha this week:

• Positive Sentiment: Analysts continue to view MediaAlpha favorably overall, with a consensus rating of Moderate Buy and a consensus target price above the current share price, which may be helping support the stock. MediaAlpha, Inc. (NYSE:MAX) Receives Consensus Rating of “Moderate Buy” from Analysts
• Positive Sentiment: Despite a recent downgrade, TD Cowen still has a target price of $11, which is modestly above recent trading levels and suggests analysts still see limited upside. MediaAlpha had its price target lowered by TD Cowen from $13.00 to $11.00
• Neutral Sentiment: Director Eugene Nonko sold additional shares under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards. This looks like routine insider selling rather than a sudden change in conviction, but repeated sales can still temper enthusiasm. MediaAlpha (NYSE:MAX) Director Eugene Nonko Sells 6,667 Shares of Stock
• Neutral Sentiment: The company’s latest quarter showed revenue growth, but earnings per share missed estimates, creating a mixed fundamental picture for investors.
• Negative Sentiment: A law firm announced an investigation into MediaAlpha’s board and management tied to alleged misleading advertising and a $45 million FTC settlement, adding legal and reputational risk that could pressure the shares. MAX Stock News: MediaAlpha Board Investigated after Alleged Deceptive Advertising and FTC Settlement
• Negative Sentiment: TD Cowen cut its price target from $13 to $11 and kept a Hold rating, signaling less confidence in near-term upside. MediaAlpha price target lowered by TD Cowen

MediaAlpha Price Performance

The company has a market capitalization of $676.81 million, a price-to-earnings ratio of 16.96 and a beta of 1.16. The firm’s fifty day moving average price is $9.27 and its 200-day moving average price is $10.05.

MediaAlpha (NYSE:MAX) last released its quarterly earnings data on Wednesday, April 29th. The company reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.04). The firm had revenue of $310.00 million for the quarter, compared to analyst estimates of $298.91 million. MediaAlpha had a net margin of 3.37% and a negative return on equity of 147.82%. The company’s revenue was up 17.3% compared to the same quarter last year. During the same period last year, the business earned ($0.04) EPS. On average, research analysts predict that MediaAlpha, Inc. will post 1.02 earnings per share for the current year.

Institutional Trading of MediaAlpha

Hedge funds have recently made changes to their positions in the company. Millennium Management LLC grew its holdings in shares of MediaAlpha by 680.9% during the third quarter. Millennium Management LLC now owns 1,429,556 shares of the company’s stock worth $16,268,000 after purchasing an additional 1,246,493 shares during the last quarter. Victory Capital Management Inc. raised its holdings in MediaAlpha by 1,261.9% in the 3rd quarter. Victory Capital Management Inc. now owns 710,819 shares of the company’s stock valued at $8,089,000 after buying an additional 658,625 shares during the last quarter. JPMorgan Chase & Co. boosted its position in MediaAlpha by 95.2% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,058,441 shares of the company’s stock worth $12,045,000 after buying an additional 516,195 shares during the period. Lazard Asset Management LLC acquired a new stake in MediaAlpha during the 2nd quarter worth approximately $4,268,000. Finally, Lighthouse Investment Partners LLC boosted its position in MediaAlpha by 831.7% during the 3rd quarter. Lighthouse Investment Partners LLC now owns 353,930 shares of the company’s stock worth $4,028,000 after buying an additional 315,943 shares during the period. 64.39% of the stock is owned by institutional investors and hedge funds.

About MediaAlpha

MediaAlpha, Inc is a technology company that operates a real-time digital marketplace for the distribution of insurance and adjacent services. The company’s platform connects buyers—consumers seeking insurance policies—to sellers, including insurance carriers and distribution partners, through programmatic bidding and data-driven pricing. By leveraging transaction-level data and proprietary auction mechanics, MediaAlpha enables carriers to acquire customers more efficiently and at scale.

The firm offers a suite of products that help clients optimize marketing spend and improve conversion rates.