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Investing.com - Keefe, Bruyette & Woods raised its price target on MediaAlpha (NYSE:MAX) to $18.00 from $17.00 on Friday, while maintaining an Outperform rating on the stock.
The price target increase follows MediaAlpha’s announcement of a $32.9 million share repurchase at $10.17 per share in a privately negotiated transaction with Insignia, which will retire approximately 5% of the company’s outstanding shares. The stock has shown strong momentum, gaining over 13% in the past week and 33% over the last six months. Get more exclusive insights with InvestingPro, which offers 12 additional investment tips for MediaAlpha.
KBW noted that following the recently announced $45 million FTC settlement, it had expected MediaAlpha to consider using its strong cash flow generation to repurchase shares opportunistically.
The research firm had previously modeled $25 million of buybacks in each 2026 and 2027, though it had projected significantly more capacity given the strong earning forecast.
KBW raised its earnings per share estimates to incorporate the accretion from this transaction, basing the new $18 target on 12x EV/AEBITDA and the reduced share count, while reiterating its Outperform rating with 50% upside potential.
In other recent news, MediaAlpha Inc. reported its Q2 2025 earnings, which showed a notable miss in earnings per share (EPS), posting -$0.33 compared to the anticipated $0.17. Despite this shortfall, the company’s revenue slightly exceeded expectations, coming in at $251.6 million against a forecast of $250.67 million. Additionally, MediaAlpha has repurchased 3,234,894 shares of its Class A common stock for approximately $32.9 million. This transaction was conducted privately with entities affiliated with Insignia Capital Group, L.P. The repurchase price was $10.17 per share, which represents a 5.5% discount to the closing price on September 2, 2025. These developments reflect MediaAlpha’s ongoing strategic financial maneuvers and market performance.
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