MaxLinear (NASDAQ:MXL) Trading Down 5.2% – Should You Sell?

MaxLinear, Inc (NASDAQ:MXL)’s share price dropped 5.2% during trading on Friday . The company traded as low as $88.50 and last traded at $94.5250. Approximately 1,241,590 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 2,706,442 shares. The stock had previously closed at $99.67.

Analysts Set New Price Targets

MXL has been the subject of a number of research analyst reports. Susquehanna reiterated a “neutral” rating and issued a $30.00 price target on shares of MaxLinear in a research note on Monday, April 20th. Benchmark initiated coverage on MaxLinear in a research note on Tuesday, May 12th. They issued a “buy” rating and a $28.00 price target for the company. Wells Fargo & Company increased their price target on MaxLinear from $18.00 to $20.00 and gave the company an “equal weight” rating in a research note on Friday, January 30th. Loop Capital raised MaxLinear from a “hold” rating to a “buy” rating and increased their price objective for the company from $17.00 to $75.00 in a report on Wednesday, April 29th. Finally, Stifel Nicolaus increased their price objective on MaxLinear from $34.00 to $49.00 and gave the company a “buy” rating in a report on Friday, April 24th. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $44.20.

MaxLinear Stock Performance

The stock has a market capitalization of $8.66 billion, a price-to-earnings ratio of -63.66 and a beta of 3.95. The firm has a fifty day moving average of $42.84 and a 200 day moving average of $26.34. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.70 and a quick ratio of 1.12.

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

Insider Activity

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

Hedge Funds Weigh In On MaxLinear

Hedge funds have recently bought and sold shares of the business. Pure Financial Advisors LLC purchased a new position in MaxLinear during the fourth quarter worth approximately $1,424,000. Summit Global Investments purchased a new position in MaxLinear during the third quarter worth approximately $555,000. Tudor Investment Corp ET AL boosted its position in MaxLinear by 68.5% during the third quarter. Tudor Investment Corp ET AL now owns 427,195 shares of the semiconductor company’s stock worth $6,869,000 after purchasing an additional 173,709 shares in the last quarter. Lisanti Capital Growth LLC purchased a new position in MaxLinear during the third quarter worth approximately $1,180,000. Finally, Pictet Asset Management Holding SA purchased a new position in MaxLinear during the fourth quarter worth approximately $190,000. 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.