MaxLinear (NASDAQ:MXL) Stock Falls 7.1% – Here’s Why

MaxLinear, Inc (NASDAQ:MXL)’s share price was down 7.1% during trading on Thursday. The stock traded as low as $100.33 and last traded at $99.6950. 1,217,464 shares traded hands during trading, a decline of 61% from the average daily volume of 3,098,906 shares. The stock had previously closed at $107.36.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of MaxLinear in a research note on Friday, July 17th. Wall Street Zen raised MaxLinear from a “hold” rating to a “buy” rating in a research note on Sunday, July 26th. Roth Capital boosted their target price on MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Stifel Nicolaus increased their price target on MaxLinear from $110.00 to $120.00 and gave the company a “buy” rating in a report on Friday, July 24th. Finally, Wells Fargo & Company lifted their price target on shares of MaxLinear from $42.00 to $75.00 and gave the company an “equal weight” rating in a research report on Monday, July 20th. Five 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, MaxLinear presently has an average rating of “Hold” and a consensus price target of $88.64.

MaxLinear Trading Up 2.6%

The company has a market capitalization of $8.72 billion, a price-to-earnings ratio of -80.81 and a beta of 3.93. The business has a fifty day moving average price of $76.41 and a 200 day moving average price of $71.84. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.78 and a quick ratio of 1.15.

MaxLinear (NASDAQ:MXL) last announced its quarterly earnings data on Thursday, July 23rd. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.02. The business had revenue of $168.85 million for 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%. MaxLinear’s quarterly revenue was up 55.2% on a year-over-year basis. During the same quarter last year, the company posted $0.02 earnings per share. On average, equities analysts expect that MaxLinear, Inc will post 0.78 EPS for the current fiscal year.

Insider Activity

In other news, CEO Kishore Seendripu sold 351,454 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $85.95, for a total transaction of $30,207,471.30. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 7.70% of the company’s stock.

Hedge Funds Weigh In On MaxLinear

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC lifted its position in shares of MaxLinear by 16.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 217 shares during the period. Ameritas Advisory Services LLC acquired a new position in shares of MaxLinear in the second quarter valued at $32,000. KBC Group NV bought a new position in MaxLinear in the first quarter worth $35,000. Carolina Wealth Advisors LLC bought a new position in MaxLinear in the second quarter worth $47,000. Finally, Global Retirement Partners LLC acquired a new stake in MaxLinear during the second quarter worth $56,000. 90.79% of the stock is currently owned by institutional investors.

About MaxLinear

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.