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LOS ANGELES - MediaAlpha, Inc. (NYSE: MAX), a prominent player in programmatic customer acquisition for the insurance industry with a market capitalization of $623 million, has announced the appointment of Bradley Hunt to its Board of Directors. The company’s stock has faced headwinds, declining over 54% in the past year, though InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model. Mr. Hunt, a seasoned executive with over twenty years of experience in health insurance, joins the board with a wealth of knowledge from his time at UnitedHealth Group, Inc. (UHG), where he notably led as CEO of UHG’s Optum Rx Home Delivery Pharmacy business.
The company’s Chair, Kathy Vrabeck, expressed confidence in Hunt’s ability to contribute to MediaAlpha’s growth and enhance shareholder value, citing his expertise in customer acquisition and marketing strategy. Hunt’s appointment comes as part of a broader board transition initiated after MediaAlpha ceased to be a controlled company in May 2024.
In addition to welcoming Hunt, MediaAlpha is preparing for the departure of Jennifer Moyer, who will not seek reelection when her term expires in May 2025. Vrabeck acknowledged Moyer’s significant contributions to the company, particularly during its transition from IPO to its current state.
MediaAlpha, which claims to be the leading programmatic customer acquisition platform in the insurance sector, boasts over 1,200 active partners and generated nearly 119 million Consumer Referrals in 2024. The company’s technology facilitated $1.5 billion in advertising spend across various insurance and related industries last year. With revenues of $865 million and a healthy current ratio of 1.43, the company maintains strong operational metrics. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.
The company’s forward-looking statements suggest an optimistic outlook for growth in Medicare Advantage and continued profitable revenue expansion, supported by analysts’ forecasts of 20% revenue growth for FY2025. With an expected EPS of $1.52 for FY2025 and analyst price targets ranging from $13 to $27, the company shows promising growth potential. However, MediaAlpha also cautions that actual results may differ materially from projections due to various factors, as detailed in its SEC filings, including its Form 10-K filed on February 24, 2025.
This strategic addition to MediaAlpha’s Board of Directors is part of the company’s efforts to fortify its leadership team and sustain its market leadership. The information in this article is based on a press release statement from MediaAlpha, Inc.
In other recent news, MediaAlpha Inc. reported its fourth-quarter earnings, revealing a mixed financial performance with earnings per share (EPS) of $0.08, falling short of the expected $0.22. However, the company slightly exceeded revenue expectations with $300.6 million, surpassing the anticipated $298.3 million and marking a 157% year-over-year growth. Despite the revenue beat, the company forecasted a first-quarter revenue outlook between $225 million and $245 million, below the consensus estimate of $268.6 million. Analysts from Goldman Sachs and Keefe, Bruyette & Woods have adjusted their price targets for MediaAlpha, citing the company’s cautious guidance and ongoing Federal Trade Commission (FTC) inquiry. Goldman Sachs reduced its price target to $14.00 from $23.00 while maintaining a Buy rating, and Keefe, Bruyette & Woods lowered its target to $19.00 from $22.00, keeping an Outperform rating. MediaAlpha’s Property & Casualty insurance vertical showed significant growth, with a 639% year-over-year increase in transaction value. The company also reported a full-year revenue increase of 123% to $864.7 million and a net income of $22.1 million, a significant improvement from a net loss the previous year. MediaAlpha is currently in discussions with the FTC, having set aside a $7.0 million reserve related to this matter.
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