White Mountains Insurance Group Ltd (Trades, Portfolio), a renowned investment guru, recently added to its stake in MediaAlpha Inc (MAX, Financial). This article aims to provide an in-depth analysis of the transaction, the guru's profile, and the traded stock's performance. The information provided herein is based on data accurate as of July 10, 2023.
Details of the Transaction
On June 30, 2023, White Mountains Insurance Group Ltd (Trades, Portfolio) increased its holdings in MediaAlpha Inc by 34.93%, acquiring an additional 5,916,816 shares at a trade price of $10 per share. This transaction had an 8.83% impact on the guru's portfolio, bringing their total holdings in MediaAlpha Inc to 22,856,814 shares. This represents 34.1% of the guru's portfolio and 51.2% of MediaAlpha Inc's equity.
Profile of White Mountains Insurance Group Ltd (Trades, Portfolio)
White Mountains Insurance Group Ltd (Trades, Portfolio), based at 80 South Main Street, Hanover, NH, is a prominent player in the investment world. The guru's investment philosophy is centered around value investing. With an equity of $611 million, the guru holds stocks in two companies, with its top holdings being S&P 500 ETF TRUST ETF(SPY, Financial) and MediaAlpha Inc(MAX, Financial).
About MediaAlpha Inc
MediaAlpha Inc, a US-based company, operates a platform that connects insurance carriers and consumers in real-time. The company's segments include health insurance, life insurance, and property & casualty insurance. As of the date of this article, MediaAlpha Inc has a market capitalization of $452.447 million. The stock is currently trading at $9.87, which is modestly undervalued according to the GF valuation of $11.08. The price to GF value ratio stands at 0.89.
Analysis of MediaAlpha Inc's Stock Performance
Since its IPO on October 28, 2020, MediaAlpha Inc's stock has declined by 57.09%. The stock has also experienced a year-to-date decline of 3.99%. Despite these declines, the stock has a GF score of 39, indicating potential for future performance. The stock's F score is 2, and its Z score is 0.19.
Financial Health of MediaAlpha Inc
MediaAlpha Inc's financial health is characterized by a cash to debt ratio of 0.11, ranking 560th in its industry. The company's return on assets (ROA) stands at -26.46%, ranking 486th. Over the past three years, the company's revenue has declined by 4.60%, while its EBITDA has grown by 5.10%.
Momentum and Predictability of the Stock
MediaAlpha Inc's stock has an RSI 5 Day of 52.25, an RSI 9 Day of 53.72, and an RSI 14 Day of 54.61. The stock's momentum index for 6 - 1 month is -12.81, and for 12 - 1 month is -15.69. The stock ranks 485th in terms of RSI 14 Day and 401st in terms of Momentum Index 6 - 1 Month.
Conclusion
In conclusion, White Mountains Insurance Group Ltd (Trades, Portfolio)'s recent acquisition of additional shares in MediaAlpha Inc is a significant move that increases the guru's stake in the company. Despite the stock's recent performance, the guru's increased investment could signal confidence in the company's future prospects. However, investors should conduct their own research and consider various factors, including the company's financial health and stock performance, before making investment decisions.
