MediaAlpha, Inc. Completes $32.9 Million Stock Repurchase from Insignia Capital Group

MediaAlpha repurchased 3.2 million shares at a discount, reflecting confidence in growth and capital allocation strategy.

Quiver AI Summary

MediaAlpha, Inc. announced the repurchase of 3,234,894 shares of its Class A common stock at a price of $10.17 per share, totaling approximately $32.9 million, in a transaction with Insignia Capital Group. This repurchase reflects the company's confidence in its growth strategy and its commitment to shareholder value, as it was executed at a 5.5% discount to the stock's previous closing price. The transaction was approved by an independent Special Committee of the Board and involved Insignia exchanging its Class B shares for the Class A shares repurchased. MediaAlpha's CFO emphasized the company's strong cash flow and balance sheet as indicators of its ability to continue investing in innovation and returning value to shareholders.

Potential Positives

MediaAlpha repurchased 3,234,894 shares of its Class A common stock for approximately $32.9 million, demonstrating strong capital management and commitment to shareholder value.
The repurchase occurred at a discount of approximately 5.5% to the market price, which is a financially prudent move that enhances the value of remaining shares.
The statement from the CFO reflects confidence in the company's strategy and multi-year growth prospects, indicating positive future expectations for MediaAlpha.
The transaction was approved by a Special Committee of independent directors, ensuring corporate governance standards were maintained during the share repurchase process.

Potential Negatives

The stock repurchase was conducted at a discount, which may indicate that the market does not fully value MediaAlpha's shares at the current price.
Insignia's decision to sell its remaining shares suggests uncertainty regarding the long-term commitment of large stakeholders to MediaAlpha.
The forward-looking statements contain numerous disclaimers about the uncertainty of future performance, which may signal potential volatility or risks in achieving projected growth.

FAQ

What recent financial transaction did MediaAlpha announce?

MediaAlpha announced the repurchase of 3,234,894 shares of its Class A common stock for approximately $32.9 million.

What was the purchase price of the repurchased shares?

The repurchased shares were bought at a price of $10.17 per share, representing a 5.5% discount.

Who commented on the stock repurchase and what did they say?

Pat Thompson, MediaAlpha's CFO, stated the repurchase reflects confidence in the company's strategy and growth prospects.

What will happen to the repurchased shares?

The repurchased shares will be canceled and retired following the transaction.

Who approved the stock repurchase transaction?

The transaction was approved by a Special Committee composed solely of independent directors of MediaAlpha's Board.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$MAX Insider Trading Activity

$MAX insiders have traded $MAX stock on the open market 5 times in the past 6 months. Of those trades, 1 have been purchases and 4 have been sales.

Here’s a breakdown of recent trading of $MAX stock by insiders over the last 6 months:

KEITH CRAMER (Chief Revenue Officer) has made 0 purchases and 3 sales selling 29,669 shares for an estimated $297,841.
KATHY P VRABECK purchased 31,000 shares for an estimated $297,575
KUANLING AMY YEH (Chief Technology Officer) sold 6,000 shares for an estimated $61,171

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$MAX Hedge Fund Activity

We have seen 94 institutional investors add shares of $MAX stock to their portfolio, and 90 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

TIMESSQUARE CAPITAL MANAGEMENT, LLC removed 1,372,174 shares (-100.0%) from their portfolio in Q2 2025, for an estimated $15,025,305
GOLDMAN SACHS GROUP INC added 1,270,655 shares (+172.5%) to their portfolio in Q2 2025, for an estimated $13,913,672
CLEARLINE CAPITAL LP removed 1,229,613 shares (-46.3%) from their portfolio in Q2 2025, for an estimated $13,464,262
DRIEHAUS CAPITAL MANAGEMENT LLC removed 960,757 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $8,877,394
JANUS HENDERSON GROUP PLC added 619,026 shares (+4465.6%) to their portfolio in Q2 2025, for an estimated $6,778,334
CENTERBOOK PARTNERS LP removed 471,864 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $4,360,023
MILLENNIUM MANAGEMENT LLC removed 431,479 shares (-70.2%) from their portfolio in Q2 2025, for an estimated $4,724,695

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$MAX Analyst Ratings

Wall Street analysts have issued reports on $MAX in the last several months. We have seen 5 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

RBC Capital issued a "Outperform" rating on 05/07/2025
JP Morgan issued a "Overweight" rating on 05/01/2025
Keefe, Bruyette & Woods issued a "Outperform" rating on 04/22/2025
Goldman Sachs issued a "Buy" rating on 04/14/2025
BMO Capital issued a "Outperform" rating on 04/03/2025

To track analyst ratings and price targets for $MAX, check out Quiver Quantitative's $MAX forecast page.

$MAX Price Targets

Multiple analysts have issued price targets for $MAX recently. We have seen 5 analysts offer price targets for $MAX in the last 6 months, with a median target of $16.0.

Here are some recent targets:

Ben Hendrix from RBC Capital set a target price of $18.0 on 05/07/2025
Cory Carpenter from JP Morgan set a target price of $12.0 on 05/01/2025
Tommy McJoynt from Keefe, Bruyette & Woods set a target price of $16.0 on 04/22/2025
Eric Sheridan from Goldman Sachs set a target price of $12.5 on 04/14/2025
Michael Zaremski from BMO Capital set a target price of $23.0 on 04/03/2025

Full Release

LOS ANGELES, Sept. 04, 2025 (GLOBE NEWSWIRE) -- MediaAlpha, Inc. (NYSE: MAX), the leading marketing technology platform powering real-time customer acquisition for the insurance industry, today announced that it has repurchased 3,234,894 shares of its Class A common stock at a price of $10.17 per share (a total of approximately $32.9 million) in a privately negotiated transaction with entities affiliated with Insignia Capital Group, L.P. (“Insignia”). The purchase price represents a discount of approximately 5.5% to the closing price of MediaAlpha’s Class A common stock on September 2, 2025.

“This stock repurchase reflects our confidence in MediaAlpha’s strategy, execution and multi-year growth prospects,” said Pat Thompson, Chief Financial Officer. “Privately repurchasing these shares at a discount is immediately accretive, underscoring our disciplined approach to capital allocation and commitment to creating value for shareholders. With robust cash flow generation and a strong balance sheet, we are well-positioned to continue investing in innovation while also returning capital to shareholders.”

Tony Broglio, Insignia Managing Partner, said, “Our desire to sell our remaining shares in MediaAlpha is tied to the lifecycle of our private equity fund. We are proud to have supported MediaAlpha’s journey and are confident the company will continue to thrive in the years ahead.”

The private stock repurchase was approved by a Special Committee of MediaAlpha’s Board of Directors, comprised solely of independent and disinterested directors not affiliated with Insignia. Insignia exchanged its 3,234,894 shares of Class B common stock, together with an equivalent number of Class B-1 units of the Company’s QL Holdings, LLC subsidiary, for the 3,234,894 shares of Class A common stock repurchased. The repurchased shares will be canceled and retired.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the Company’s confidence in its strategy, execution and multi-year growth prospects, and its expectations regarding cash flow generation, continued investment, and returning capital to shareholders. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These forward-looking statements are based on current expectations, estimates, and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including those more fully described in MediaAlpha’s filings with the Securities and Exchange Commission (“SEC”), including the Form 10-K filed on February 24, 2025 and the Forms 10-Q filed on April 30, 2025 and August 6, 2025. These factors should not be construed as exhaustive. MediaAlpha disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

About MediaAlpha

We believe we are the insurance industry’s leading programmatic customer acquisition platform. With more than 1,200 active partners, excluding our agent partners, we connect insurance carriers with online shoppers and generated nearly 119 million Consumer Referrals in 2024. Our programmatic advertising technology over the twelve months ended June 30, 2025 powered $1.9 billion in spend on brand, comparison, and metasearch sites across property & casualty insurance, health insurance, life insurance, and other industries. For more information, please visit www.mediaalpha.com.

Investor Contact

Denise Garcia
Hayflower Partners
[email protected]