BlackRock Inc. Takes $1.75 Billion Position in MaxLinear, Inc $MXL

Key Points

• BlackRock acquired 13.7 million MaxLinear shares worth approximately $1.75 billion, giving it a 15.11% stake. Institutional investors collectively own 90.79% of the semiconductor company.
• MaxLinear reported quarterly revenue of $168.85 million, up 55.2% year over year, and adjusted EPS of $0.35, slightly above expectations. Analysts’ consensus rating is “Hold,” with an average price target of $85.
• Insider activity was a concern, with company insiders selling 602,454 shares worth roughly $51.6 million during the last quarter, including substantial sales by CEO Kishore Seendripu.

BlackRock Inc. purchased a new position in shares of MaxLinear, Inc (NASDAQ:MXL - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 13,700,399 shares of the semiconductor company's stock, valued at approximately $1,754,062,000. BlackRock Inc. owned 15.11% of MaxLinear as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also added to or reduced their stakes in MXL. Pallas Capital Advisors LLC acquired a new stake in MaxLinear in the second quarter valued at approximately $639,000. Deutsche Bank AG bought a new position in shares of MaxLinear in the 2nd quarter worth $28,081,000. Perigon Wealth Management LLC acquired a new stake in MaxLinear in the 2nd quarter valued at $248,000. AIGH Capital Management LLC acquired a new stake in MaxLinear in the 2nd quarter valued at $104,729,000. Finally, OneDigital Investment Advisors LLC bought a new stake in MaxLinear during the 2nd quarter valued at $303,000. Institutional investors own 90.79% of the company's stock.

Wall Street Analysts Forecast Growth

MXL has been the topic of a number of recent research reports. Susquehanna raised their price objective on shares of MaxLinear from $45.00 to $80.00 and gave the company a "neutral" rating in a research note on Friday, July 24th. Loop Capital upgraded shares of MaxLinear from a "hold" rating to a "buy" rating and upped their target price for the stock from $17.00 to $75.00 in a report on Wednesday, April 29th. Wall Street Zen raised shares of MaxLinear from a "hold" rating to a "buy" rating in a research report on Sunday, July 26th. Benchmark initiated coverage on MaxLinear in a research note on Wednesday, May 27th. They set a "buy" rating and a $125.00 price target for the company. Finally, Stifel Nicolaus boosted their price objective on MaxLinear from $110.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, MaxLinear has an average rating of "Hold" and a consensus price target of $85.00.

MaxLinear Price Performance

MXL opened at $66.43 on Thursday. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.78 and a quick ratio of 1.15. The company has a market capitalization of $6.02 billion, a price-to-earnings ratio of -55.82 and a beta of 3.95. The firm's fifty day moving average price is $82.84 and its two-hundred day moving average price is $56.61. MaxLinear, Inc has a 1 year low of $12.77 and a 1 year high of $128.30.

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

Trending Headlines about MaxLinear

Here are the key news stories impacting MaxLinear this week:

• Positive Sentiment: MaxLinear’s expanding portfolio of silicon for AI data-center racks could strengthen its long-term positioning in data-center connectivity and provide a potential growth avenue beyond its traditional broadband markets. Is MaxLinear’s Expanded AI Rack Silicon Portfolio Quietly Reshaping Its Long-Term Positioning?
• Positive Sentiment: The company’s latest reported quarter showed strong momentum: revenue rose 55.2% year over year to $168.85 million, while adjusted EPS of $0.35 exceeded the $0.33 consensus estimate. This provides fundamental support for the stock despite its recent volatility.
• Neutral Sentiment: Recent coverage is focused on what could shape MaxLinear’s next move, indicating that investors are assessing whether the rally can be sustained and whether AI-related opportunities can offset execution and valuation concerns. MaxLinear Slides: What Could Shape Its Next Move?
• Negative Sentiment: CEO Kishore Seendripu disclosed sales totaling 591,454 shares across August 14 and August 17, worth approximately $50.4 million. The August 14 transaction alone reduced his position by 57.73%, leaving 175,727 shares reported afterward. Such sizable insider selling can pressure sentiment, particularly after a major stock-price advance. MaxLinear CEO Sells 240,000 Shares
• Negative Sentiment: A risk-focused analysis is drawing attention to potentially important issues in MaxLinear’s disclosures, adding to investor caution while the company remains unprofitable on a GAAP basis. MaxLinear: An Elephant Size Risk Hidden in the Small Footnotes

Insider Activity

In other news, CEO Kishore Seendripu sold 351,454 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $85.95, for a total value of $30,207,471.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Thomas E. Pardun sold 11,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $105.00, for a total value of $1,155,000.00. Following the sale, the director directly owned 55,252 shares of the company's stock, valued at $5,801,460. The trade was a 16.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 602,454 shares of company stock valued at $51,589,671. Company insiders own 7.70% of the company's stock.

About MaxLinear

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.

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