MediaAlpha Inc. (NYSE: MAX) stock jumped 10.48% on Wednesday to $9.38 against a previous-day closing price of $8.49. With 0.58 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.14 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $9.74 whereas the lowest price it dropped to was $8.19. The 52-week range on MAX shows that it touched its highest point at $19.87 and its lowest point at $7.59 during that stretch. It currently has a 1-year price target of $13.60.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MAX was up-trending over the past week, with a rise of 13.56%, but this was up by 10.61% over a month. Three-month performance dropped to -7.95% while six-month performance fell -42.38%. The stock lost -49.52% in the past year, while it has lost -39.25% so far this year. A look at the trailing 12-month EPS for MAX yields -0.53 with Next year EPS estimates of -0.55. For the next quarter, that number is -0.27. This implies an EPS growth rate of -4.10% for this year and 33.70% for next year.
Float and Shares Shorts:
At present, 41.70 million MAX shares are outstanding with a float of 39.44 million shares on hand for trading. On Jul 14, 2022, short shares totaled 1.23 million, which was 2.95% higher than short shares on Jun 14, 2022. In addition to Mr. Steven Yi as the firm’s Co-Founder, CEO, Pres & Director, Mr. Eugene Nonko serves as its Co-Founder, CTO & Director.
Through their ownership of 100.14% of MAX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.30% of MAX, in contrast to 29.51% held by mutual funds. Shares owned by individuals account for 25.59%. As the largest shareholder in MAX with 14.89% of the stake, Kayne Anderson Rudnick Investment holds 6,272,620 shares worth 6,272,620. A second-largest stockholder of MAX, Broad Bay Capital Management LP, holds 2,320,000 shares, controlling over 5.51% of the firm’s shares. Ararat Capital Management LP is the third largest shareholder in MAX, holding 2,303,431 shares or 5.47% stake. With a 11.03% stake in MAX, the Virtus KAR Small Cap Growth Fund is the largest stakeholder. A total of 4,646,036 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 3.80% of MAX stock, is the second-largest Mutual Fund holder. It holds 1,599,999 shares valued at 13.36 million. Vanguard Total Stock Market Index holds 1.73% of the stake in MAX, owning 726,568 shares worth 6.07 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MAX since 6 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MAX analysts setting a high price target of $17.00 and a low target of $10.00, the average target price over the next 12 months is $13.60. Based on these targets, MAX could surge 81.24% to reach the target high and rise by 6.61% to reach the target low. Reaching the average price target will result in a growth of 44.99% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MAX will report FY 2022 earnings on 03/09/2023. Analysts have provided yearly estimates in a range of -$0.59 being high and -$1.13 being low. For MAX, this leads to a yearly average estimate of -$0.78. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. MediaAlpha Inc. surprised analysts by -$0.02 when it reported -$0.22 EPS against a consensus estimate of -$0.20. The surprise factor in the prior quarter was -$0.08. Based on analyst estimates, the high estimate for the next quarter is -$0.17 and the low estimate is -$0.43. The average estimate for the next quarter is thus -$0.25.
Summary of Insider Activity:
Insiders traded MAX stock several times over the past three months with 13 Buys and 6 Sells. In these transactions, 397,619 shares were bought while 19,140 shares were sold. The number of buy transactions has increased to 58 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 1,700,262 while 233,559 shares were sold.