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MediaAlpha Inc. shares have tumbled to $9.73 USD, marking a significant decline from its 52-week high of $25.78. According to InvestingPro data, the company maintains a "GOOD" overall financial health score despite the recent market pressure. This latest price level reflects a stark contrast from its performance over the past year, with the company’s stock experiencing a significant downturn of -43.01%. Despite these challenges, analysts maintain optimism with price targets ranging from $13 to $27, suggesting potential upside. The company’s impressive revenue growth of 72.47% in the last twelve months and strong liquidity position, with a current ratio of 1.22, indicate fundamental resilience. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available through the comprehensive Pro Research Report, which provides deep-dive analysis of MediaAlpha among 1,400+ top US stocks.
In other recent news, MediaAlpha has reported a mixed financial performance for the fourth quarter of 2024, with earnings per share (EPS) of $0.08 falling short of the projected $0.22, while revenue slightly exceeded expectations at $300.6 million against the forecasted $298.3 million. The company’s adjusted EBITDA reached $36.7 million, surpassing both internal and analyst expectations due to higher-than-anticipated margins. Despite these positives, the company’s revenue forecast for the first quarter of 2025 fell 16% short of consensus estimates, and the AEBITDA projection was 15% below expectations, largely due to challenges in the Property and Casualty (P&C) insurance market. Analysts from Keefe, Bruyette & Woods have adjusted their price target for MediaAlpha shares from $22.00 to $19.00, maintaining an Outperform rating, while Goldman Sachs has reduced its target from $23.00 to $14.00 but continues to endorse the stock with a Buy rating. The company also reported a record transaction value of $499.2 million for Q4, driven by significant growth in its insurance verticals and partnerships. MediaAlpha continues to deal with an ongoing Federal Trade Commission (FTC) inquiry, setting aside a $7 million legal accrual as a precaution. Despite near-term challenges, analysts from both firms see potential in MediaAlpha’s long-term growth, citing opportunities in the insurance digital advertising market.
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