MaxLinear (NASDAQ:MXL) Shares Gap Up – Here’s Why

MaxLinear, Inc (NASDAQ:MXL)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $91.93, but opened at $100.23. MaxLinear shares last traded at $94.3130, with a volume of 1,215,790 shares changing hands.

Analyst Ratings Changes

Several research firms recently commented on MXL. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $40.00 target price on shares of MaxLinear in a research note on Friday, April 24th. Susquehanna reiterated a “neutral” rating and issued a $30.00 target price on shares of MaxLinear in a research note on Monday, April 20th. Benchmark began coverage on MaxLinear in a research note on Tuesday. They issued a “buy” rating and a $28.00 target price for the company. Roth Mkm raised MaxLinear from a “neutral” rating to a “buy” rating and set a $60.00 price target for the company in a research report on Friday, April 24th. Finally, Northland Securities set a $55.00 price target on MaxLinear in a research report on Friday, April 24th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, MaxLinear presently has an average rating of “Hold” and a consensus price target of $44.20.

MaxLinear Stock Performance

The stock has a 50-day simple moving average of $32.23 and a 200-day simple moving average of $22.55. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.70 and a quick ratio of 1.12. The stock has a market cap of $8.27 billion, a PE ratio of -60.82 and a beta of 3.95.

MaxLinear (NASDAQ:MXL) last posted its quarterly earnings results on Thursday, April 23rd. The semiconductor company reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.04. MaxLinear had a negative return on equity of 2.33% and a negative net margin of 25.96%.The firm had revenue of $137.19 million during the quarter, compared to the consensus estimate of $137.15 million. During the same quarter in the previous year, the business earned ($0.05) earnings per share. The firm’s quarterly revenue was up 43.0% compared to the same quarter last year. Equities analysts predict that MaxLinear, Inc will post 0.52 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Steven G. Litchfield sold 20,000 shares of the company’s stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $15.68, for a total value of $313,600.00. Following the completion of the sale, the insider owned 343,435 shares of the company’s stock, valued at $5,385,060.80. This represents a 5.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Connie H. Kwong sold 35,000 shares of the company’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $96.96, for a total value of $3,393,600.00. Following the completion of the sale, the insider directly owned 13,947 shares of the company’s stock, valued at $1,352,301.12. The trade was a 71.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 99,097 shares of company stock valued at $5,150,815 in the last ninety days. Company insiders own 7.70% of the company’s stock.

Institutional Investors Weigh In On MaxLinear

Institutional investors and hedge funds have recently modified their holdings of the stock. Larson Financial Group LLC boosted its position in shares of MaxLinear by 161.7% in the fourth quarter. Larson Financial Group LLC now owns 1,416 shares of the semiconductor company’s stock worth $25,000 after buying an additional 875 shares during the period. Smartleaf Asset Management LLC boosted its position in shares of MaxLinear by 103.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company’s stock worth $25,000 after buying an additional 726 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of MaxLinear in the fourth quarter worth about $25,000. International Assets Investment Management LLC purchased a new stake in shares of MaxLinear in the fourth quarter worth about $27,000. Finally, KBC Group NV purchased a new stake in shares of MaxLinear in the first quarter worth about $35,000. Hedge funds and other institutional investors own 90.79% of the company’s stock.

MaxLinear Company Profile

MaxLinear, Inc is a provider of radio-frequency (RF), analog, and mixed-signal integrated circuits for broadband communications, data center connectivity, and video infrastructure applications. The company’s product portfolio includes high-performance RF front-end modules, broadband power amplifiers, optical and Ethernet transceivers, and network processors designed to support demanding signal processing requirements.

MaxLinear’s semiconductor solutions are used by cable and satellite television operators, fiber-to-the-home service providers, network equipment manufacturers, and data center operators.