MaxLinear (NASDAQ:MXL) Stock Falls 9.5% – What’s Next?

MaxLinear, Inc (NASDAQ:MXL) fell 9.5% on Wednesday. The stock traded as low as $80.59 and last traded at $80.1750. Approximately 1,148,582 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 3,101,893 shares. The stock had previously closed at $88.64.

Wall Street Analysts Forecast Growth

MXL has been the topic of several recent research reports. Needham & Company LLC lifted their price objective on MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Weiss Ratings restated a “sell (d-)” rating on shares of MaxLinear in a research note on Friday, July 17th. Wells Fargo & Company raised their target price on MaxLinear from $42.00 to $75.00 and gave the stock an “equal weight” rating in a research report on Monday, July 20th. Susquehanna lifted their price target on shares of MaxLinear from $45.00 to $80.00 and gave the stock a “neutral” rating in a research note on Friday, July 24th. Finally, Roth Capital lifted their price target on shares of MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Five research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $88.64.

MaxLinear Price Performance

The company has a quick ratio of 1.15, a current ratio of 1.78 and a debt-to-equity ratio of 0.26. The stock’s 50-day moving average price is $77.17 and its 200-day moving average price is $73.22. The company has a market capitalization of $7.22 billion, a price-to-earnings ratio of -66.95 and a beta of 3.93.

MaxLinear (NASDAQ:MXL) last issued its quarterly earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.33 by $0.02. The company had revenue of $168.85 million during the quarter, compared to analysts’ expectations of $164.64 million. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. MaxLinear’s revenue was up 55.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.02 EPS. Equities research analysts anticipate that MaxLinear, Inc will post 0.78 earnings per share for the current year.

Insider Transactions at MaxLinear

In related news, CEO Kishore Seendripu sold 351,454 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $85.95, for a total transaction of $30,207,471.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 7.70% of the company’s stock.

Institutional Trading of MaxLinear

A number of institutional investors have recently made changes to their positions in MXL. GK Wealth Management LLC boosted its stake in shares of MaxLinear by 12.7% during the 3rd quarter. GK Wealth Management LLC now owns 5,707 shares of the semiconductor company’s stock worth $515,000 after buying an additional 644 shares during the last quarter. Wedmont Private Capital increased its position in shares of MaxLinear by 44.3% in the third quarter. Wedmont Private Capital now owns 5,169 shares of the semiconductor company’s stock valued at $484,000 after acquiring an additional 1,588 shares during the last quarter. GAMMA Investing LLC increased its position in shares of MaxLinear by 10.6% in the third quarter. GAMMA Investing LLC now owns 6,802 shares of the semiconductor company’s stock valued at $614,000 after acquiring an additional 650 shares during the last quarter. QRG Capital Management Inc. acquired a new stake in shares of MaxLinear in the second quarter valued at about $205,000. Finally, Revere Asset Management Inc bought a new stake in MaxLinear during the second quarter worth about $1,139,000. Institutional investors own 90.79% of the company’s stock.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that develops high-performance analog and mixed-signal integrated circuits for communications and connectivity applications. Its products are designed to help equipment manufacturers process, transmit and manage data across broadband, wired and wireless infrastructure, data center, and industrial systems.

The company’s product portfolio includes broadband access and connectivity solutions, RF and microwave components, Ethernet and high-speed interconnect products, optical networking technologies, and power-management devices.