MaxLinear (NASDAQ:MXL) Shares Down 10.7% – Should You Sell?

MaxLinear, Inc (NASDAQ:MXL)’s stock price dropped 10.7% on Thursday. The company traded as low as $68.80 and last traded at $67.7140. Approximately 675,602 shares changed hands during trading, a decline of 78% from the average daily volume of 3,110,126 shares. The stock had previously closed at $75.79.

Analysts Set New Price Targets

MXL has been the topic of several research reports. Roth Capital increased their price objective 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. Susquehanna lifted their target price on MaxLinear from $45.00 to $80.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of MaxLinear in a report on Thursday, October 15th. Wells Fargo & Company dropped their price target on MaxLinear from $95.00 to $78.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Finally, Wall Street Zen upgraded MaxLinear from a “hold” rating to a “buy” rating in a research report on Sunday, July 26th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $88.91.

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 company has a market capitalization of $5.92 billion, a P/E ratio of -54.86 and a beta of 3.93. The business has a 50 day simple moving average of $77.78 and a 200-day simple moving average of $75.70.

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

Insider Buying and Selling at MaxLinear

In related news, CEO Kishore Seendripu sold 351,454 shares of MaxLinear stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $85.95, for a total value of $30,207,471.30. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 7.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Ameritas Advisory Services LLC bought a new position in MaxLinear in the 2nd quarter worth about $32,000. Carolina Wealth Advisors LLC acquired a new stake in shares of MaxLinear in the second quarter valued at approximately $47,000. Global Retirement Partners LLC bought a new stake in shares of MaxLinear during the second quarter valued at approximately $56,000. Reyes Financial Architecture Inc. bought a new stake in shares of MaxLinear during the third quarter valued at approximately $44,000. Finally, NFSG Corp raised its holdings in shares of MaxLinear by 284.0% during the third quarter. NFSG Corp now owns 960 shares of the semiconductor company’s stock valued at $87,000 after buying an additional 710 shares during the last quarter. 90.79% of the stock is owned by institutional investors and hedge funds.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that designs, develops and sells integrated circuits and related solutions for broadband communications, wired and wireless infrastructure, data centers, industrial applications and consumer electronics. Its products are used by equipment manufacturers and service providers to support the transmission, processing and management of voice, video and data.

The company’s portfolio includes broadband access system-on-chip products, Ethernet transceivers and controllers, high-speed interconnect and communications devices, radio-frequency and analog products, optical and copper connectivity solutions, and power-management components.