MediaAlpha (NYSE:MAX) Shares Gap Up on Better-Than-Expected Earnings

MediaAlpha, Inc. (NYSE:MAX) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $7.77, but opened at $8.80. MediaAlpha shares last traded at $8.7890, with a volume of 328,243 shares traded.

The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $0.25. The firm had revenue of $291.16 million during the quarter, compared to analyst estimates of $296.42 million. MediaAlpha had a negative net margin of 0.10% and a negative return on equity of 71.02%. MediaAlpha’s quarterly revenue was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.08 earnings per share.

Trending Headlines about MediaAlpha

Here are the key news stories impacting MediaAlpha this week:

• Positive Sentiment: Q4 EPS beat and profitability improvements: MediaAlpha reported $0.50 EPS for Q4 vs. consensus ~$0.25, and the company posted record full-year net income of $26.8M and adjusted EBITDA of $113.7M — evidence of operating leverage that supports valuation. Article Title
• Positive Sentiment: Share buyback boost: The Board doubled the repurchase authorization to $100M, which is a clear capital-return lever that can support the stock and reduce float. Article Title
• Positive Sentiment: Bullish Q1 transaction value outlook led by P&C and AI/open marketplace: Management expects Q1 2026 transaction value of $570M–$595M with ~35% P&C growth as AI and the open marketplace drive expansion — a signal of momentum in higher-margin segments and future revenue runway. Article Title
• Neutral Sentiment: Q1 revenue guidance roughly in line with street: The company guided Q1 revenue to about $285M–$305M, which overlaps with consensus (~$284M), reducing near-term forecast risk but leaving growth execution to deliver. Article Title
• Negative Sentiment: Revenue miss and YoY decline: Q4 revenue was $291.1M vs. analyst estimates of ~$296.4M, and revenue declined ~3.2% year-over-year — a near-term growth headwind that likely pressures sentiment despite the EPS beat. Article Title
• Negative Sentiment: Profitability and capital-efficiency metrics remain mixed: The company still reports a negative ROE (~-71%) and a thin trailing net margin (~-0.1%), which keeps skeptics focused on margin sustainability as MediaAlpha scales. Article Title

Wall Street Analysts Forecast Growth

MAX has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods raised their price objective on MediaAlpha from $18.00 to $19.00 and gave the stock an “outperform” rating in a research report on Thursday, October 30th. The Goldman Sachs Group set a $11.50 price objective on shares of MediaAlpha in a report on Tuesday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of MediaAlpha in a research report on Monday, December 29th. Royal Bank Of Canada reissued an “outperform” rating and issued a $11.00 target price on shares of MediaAlpha in a research report on Tuesday. Finally, Zacks Research cut MediaAlpha from a “hold” rating to a “strong sell” rating in a research note on Thursday, January 29th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $15.75.

Insider Buying and Selling at MediaAlpha

In related news, CTO Kuanling Amy Yeh sold 12,000 shares of the business’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $13.49, for a total transaction of $161,880.00. Following the completion of the transaction, the chief technology officer directly owned 402,662 shares of the company’s stock, valued at $5,431,910.38. The trade was a 2.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CRO Keith Cramer sold 10,000 shares of the company’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $12.83, for a total value of $128,300.00. Following the sale, the executive owned 187,169 shares in the company, valued at approximately $2,401,378.27. This trade represents a 5.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 495,000 shares of company stock valued at $5,820,802 in the last 90 days. Company insiders own 11.53% of the company’s stock.

Institutional Trading of MediaAlpha

A number of large investors have recently made changes to their positions in MAX. Caitong International Asset Management Co. Ltd lifted its stake in MediaAlpha by 5,900.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,160 shares of the company’s stock worth $28,000 after acquiring an additional 2,124 shares during the last quarter. Strs Ohio acquired a new stake in shares of MediaAlpha in the 4th quarter valued at $49,000. Quarry LP lifted its position in shares of MediaAlpha by 43.3% during the 3rd quarter. Quarry LP now owns 4,087 shares of the company’s stock worth $47,000 after purchasing an additional 1,234 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in shares of MediaAlpha by 28.0% during the second quarter. Tower Research Capital LLC TRC now owns 5,551 shares of the company’s stock worth $61,000 after purchasing an additional 1,213 shares in the last quarter. Finally, Raymond James Financial Inc. purchased a new position in MediaAlpha in the second quarter valued at $62,000. 64.39% of the stock is currently owned by hedge funds and other institutional investors.

MediaAlpha Price Performance

The company has a market capitalization of $576.95 million, a price-to-earnings ratio of -294.00 and a beta of 1.29. The stock has a 50 day simple moving average of $10.67 and a two-hundred day simple moving average of $11.42.

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.