Newsmax (NYSE:NMAX) Stock Sees Heavy Call Option Buying

Newsmax Inc. (NYSE:NMAX) was the target of unusually large options trading on Friday. Investors acquired 5,592 call options on the company. This represents an increase of 122% compared to the typical daily volume of 2,519 call options.

Analysts Set New Price Targets

Several research analysts have commented on NMAX shares. Weiss Ratings restated a “sell (e+)” rating on shares of Newsmax in a research report on Friday, October 2nd. Freedom Broker raised Newsmax from a “hold” rating to a “buy” rating and set a $10.00 price target on the stock in a report on Friday. Freedom Capital upgraded Newsmax from a “hold” rating to a “buy” rating and set a $10.00 price objective for the company in a research report on Friday. Wall Street Zen lowered Newsmax from a “buy” rating to a “hold” rating in a report on Saturday, October 17th. Finally, Noble Financial assumed coverage on Newsmax in a research report on Friday. They issued a “strong-buy” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $10.00.

Newsmax Price Performance

Shares of NYSE NMAX traded up $2.28 during midday trading on Friday, reaching $9.57. 5,071,443 shares of the company traded hands, compared to its average volume of 721,365. The company has a market cap of $1.24 billion, a price-to-earnings ratio of -191.48 and a beta of 2.71. The stock has a 50-day moving average price of $9.45 and a 200 day moving average price of $8.03. Newsmax has a 52 week low of $5.11 and a 52 week high of $12.11.

Newsmax (NYSE:NMAX) last announced its earnings results on Thursday, November 12th. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.14. The firm had revenue of $55.00 million during the quarter. Newsmax had a net margin of 5.70% and a return on equity of 10.45%. As a group, analysts expect that Newsmax will post -0.02 EPS for the current year.

Insider Activity

In related news, major shareholder Conyers Investments Llc sold 22,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $11.07, for a total value of $243,540.00. Following the sale, the insider owned 21,965,639 shares of the company’s stock, valued at approximately $243,159,623.73. This trade represents a 0.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last 90 days, insiders sold 494,886 shares of company stock valued at $5,611,995. Company insiders own 61.03% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in NMAX. Ieq Capital LLC raised its stake in shares of Newsmax by 3.1% in the 3rd quarter. Ieq Capital LLC now owns 184,906 shares of the company’s stock worth $1,999,000 after buying an additional 5,630 shares in the last quarter. Global Retirement Partners LLC raised its holdings in shares of Newsmax by 191.8% during the third quarter. Global Retirement Partners LLC now owns 3,166 shares of the company’s stock valued at $34,000 after acquiring an additional 2,081 shares during the period. Provenance Wealth Advisors LLC purchased a new stake in shares of Newsmax in the 3rd quarter valued at approximately $25,000. Integrated Wealth Concepts LLC acquired a new position in Newsmax in the 2nd quarter worth approximately $67,000. Finally, NewEdge Advisors LLC boosted its stake in Newsmax by 49.7% in the 2nd quarter. NewEdge Advisors LLC now owns 26,074 shares of the company’s stock worth $216,000 after purchasing an additional 8,659 shares during the period.

Newsmax News Summary

Here’s some of the latest news about NMAX:

• Positive Sentiment: Newsmax reported record Q3 revenue of $69 million, up 52.5% year over year, and net income of $15.2 million, or $0.12 per diluted share—well above estimates that called for a loss. Strong interest in the midterm elections helped drive results, and audience growth also contributed to the upbeat report. Q3 earnings details Election interest and results
• Neutral Sentiment: Call-option trading was unusually active, with volume 122% above its typical daily level. That may indicate increased speculative interest, but options activity alone does not establish a lasting price direction.
• Negative Sentiment: A third-party report says insiders recorded 13 open-market sales and no purchases over the past six months. This may weigh on sentiment, though insider transactions do not necessarily indicate the company’s outlook. Insider trading information

Newsmax Company Profile

Newsmax is a multimedia news company that produces and distributes news, opinion and lifestyle content. Its offerings include the Newsmax television network, digital news and video platforms, and print publications such as Newsmax magazine. Founded in 1998 by Christopher Ruddy, the company is based in Boca Raton, Florida. Ruddy serves as Newsmax’s chief executive officer. Newsmax reaches audiences in the United States and abroad through television distribution and its digital platforms, which provide news coverage, commentary and other programming.