possiblestock division consideration: Newsmax (NMAX) on the horizon?
Newsmax, the conservative media company, currently trades at approximately $14 per share as of July 21. The company has distribution deals with major platforms such as YouTube TV, Hulu+ Live TV, and President Donald Trump's streaming platform, Truth+.
Despite the volatility in its share price, Newsmax has not conducted a stock split yet. This is likely because there is no publicly stated rationale or indication from the company’s filings or analyst coverage suggesting the necessity or intention to do so. The stock price has ranged widely—from a high of $265 to a recent price around $14—but the company and its investors may not see a split as strategically needed or beneficial at this time.
Newsmax went public relatively recently, with an IPO raising significant cash and a strong cash position of about $126.7 million as of early 2025. The company remains focused on expanding distribution and operational growth rather than share price mechanics.
Analysts like Maxim Group have recently initiated coverage with buy ratings but have not mentioned split plans. Typical reasons for splits include making shares more affordable or boosting trading liquidity, which may not currently align with management’s priorities or market perception.
In Q1 2025, Newsmax's audience grew by 50% year over year to 33.6 million viewers. However, the company's financials show a revenue increase of 26% year over year in 2024 but a loss of $72 million.
Newsmax has been involved in legal disputes, including a defamation lawsuit with voting systems suppliers Dominion and Smartmatic. Last year, the company agreed to pay $40 million to Smartmatic, but the Dominion lawsuit is still ongoing.
It's important to note that a reverse stock split, which decreases the number of shares while increasing the share price, isn't a positive development and is often conducted when a company's share price has dropped too much and its stock is in danger of being delisted from its exchange. A reverse stock split for Newsmax isn't likely unless there is a serious decline.
On the other hand, a forward stock split, which increases the number of outstanding shares while decreasing the share price proportionally, is generally considered a good sign as it could increase trading volumes and attract more investors. However, Newsmax has not shown signs of planning a forward stock split.
For comparison, Newsmax's price-to-sales (P/S) ratio is about 11, while Fox, Newsmax's competitor, trades at 1.5 times last year’s sales.
In summary, Newsmax's focus appears to be on operational growth and market expansion rather than altering share structure to manage price per share. The odds of an upcoming stock split for Newsmax are almost nil at this time.
- Investors and analysts are closely watching Newsmax's business growth, as the company has prioritized expanding distribution and operational growth over altering its share structure to manage the price per share.
- Despite the company's significant cash position, a reverse stock split, which decreases the number of shares while increasing the share price, isn't a positive development for Newsmax and isn't likely unless there is a serious decline in its share price.
- On the other hand, a forward stock split, which increases the number of outstanding shares while decreasing the share price proportionally, signifies increased trading volumes and attracts more investors, but Newsmax has not shown signs of planning such a move.
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