MaxLinear (NASDAQ:MXL) Announces Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• MaxLinear beat earnings expectations for the quarter, reporting EPS of $0.35 versus the $0.33 consensus estimate. Revenue also topped forecasts at $168.85 million compared with $164.64 million expected.
• The stock rose sharply after the report, trading up $4.44 to $91.24 on heavy volume, well above its average trading volume.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and a $71.00 average price target, while several recent reports included both upgrades and downgrades.

MaxLinear (NASDAQ:MXL - Get Free Report) announced its quarterly earnings data on Thursday. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.02, FiscalAI reports. The firm had revenue of $168.85 million for the quarter, compared to analysts' expectations of $164.64 million. MaxLinear had a negative return on equity of 2.33% and a negative net margin of 25.96%.

MaxLinear Stock Performance

MXL stock traded up $4.44 on Thursday, reaching $91.24. The company's stock had a trading volume of 6,550,888 shares, compared to its average volume of 3,159,586. The company has a market capitalization of $8.17 billion, a P/E ratio of -60.03 and a beta of 3.91. 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 has a 52 week low of $12.77 and a 52 week high of $128.30. The firm has a fifty day moving average of $90.53 and a two-hundred day moving average of $49.22.

Insider Activity at MaxLinear

In related news, insider Connie H. Kwong sold 35,000 shares of MaxLinear 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 transaction, the insider directly owned 13,947 shares of the company's stock, valued at $1,352,301.12. The trade was 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 the SEC website. Also, Director Thomas E. Pardun sold 11,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $105.00, for a total transaction of $1,155,000.00. Following the sale, the director 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. Insiders sold 65,168 shares of company stock valued at $5,559,358 over the last quarter. Insiders own 7.70% of the company's stock.

Hedge Funds Weigh In On MaxLinear

A number of hedge funds have recently modified their holdings of the stock. Invesco Ltd. raised its holdings in shares of MaxLinear by 419.9% during the fourth quarter. Invesco Ltd. now owns 2,149,589 shares of the semiconductor company's stock valued at $37,467,000 after acquiring an additional 1,736,141 shares during the period. Paradigm Capital Management Inc. NY grew its position in MaxLinear by 582.7% during the 4th quarter. Paradigm Capital Management Inc. NY now owns 861,000 shares of the semiconductor company's stock worth $15,007,000 after purchasing an additional 734,875 shares in the last quarter. The Manufacturers Life Insurance Company raised its stake in MaxLinear by 27.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company's stock valued at $41,054,000 after purchasing an additional 628,719 shares during the period. Defiance ETFs LLC acquired a new position in MaxLinear during the fourth quarter valued at $10,944,000. Finally, Alyeska Investment Group L.P. lifted its stake in MaxLinear by 279.8% in the 3rd quarter. Alyeska Investment Group L.P. now owns 769,349 shares of the semiconductor company's stock worth $12,371,000 after acquiring an additional 566,800 shares in the last quarter. 90.79% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

MXL has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $40.00 price objective on shares of MaxLinear in a report on Friday, April 24th. Wall Street Zen lowered shares of MaxLinear from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Susquehanna reaffirmed a "neutral" rating and set a $30.00 price objective on shares of MaxLinear in a research report on Monday, April 20th. Weiss Ratings reiterated a "sell (d-)" rating on shares of MaxLinear in a research note on Friday, July 17th. Finally, Roth Capital upgraded MaxLinear from a "neutral" rating to a "buy" rating and set a $60.00 price objective for the company in a research report on Friday, April 24th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $71.00.

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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