MaxLinear (NASDAQ:MXL) Hits New 12-Month High - Here's Why

Key Points

• MaxLinear shares hit a new 52-week high of $83.82 (last traded $78.12), giving the company a market cap near $7.0 billion and a volatile profile (beta 3.93).
• The company beat quarterly expectations with EPS of $0.22 versus $0.18 and revenue of $137.19M (+43% YoY), though it still reported a negative net margin (~25.96%) and negative ROE.
• Analysts are mixed—five Buys, four Holds and one Sell—with a consensus price target of just $44.20 well below the current price, while insiders have been selling (~64,097 shares in three months) and institutional ownership is high (~90.79%).

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shares hit a new 52-week high on Tuesday . The stock traded as high as $83.82 and last traded at $78.12, with a volume of 5453593 shares. The stock had previously closed at $77.18.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Benchmark increased their target price on MaxLinear from $25.00 to $28.00 and gave the stock a "buy" rating in a research report on Friday, January 16th. Roth Mkm raised MaxLinear from a "neutral" rating to a "buy" rating and set a $60.00 target price on the stock in a research report on Friday, April 24th. Needham & Company LLC raised MaxLinear from a "hold" rating to a "buy" rating and set a $60.00 target price on the stock in a research report on Friday, April 24th. Northland Securities set a $55.00 target price on MaxLinear in a research report on Friday, April 24th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $40.00 price objective on shares of MaxLinear 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 assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $44.20.

MaxLinear Stock Up 1.2%

The firm has a 50-day simple moving average of $23.62 and a 200 day simple moving average of $19.49. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.70 and a quick ratio of 1.12. The company has a market capitalization of $7.00 billion, a PE ratio of -51.39 and a beta of 3.93.

MaxLinear (NASDAQ:MXL - Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The semiconductor company reported $0.22 EPS for the quarter, beating the consensus estimate of $0.18 by $0.04. MaxLinear had a negative return on equity of 2.33% and a negative net margin of 25.96%.The company had revenue of $137.19 million for the quarter, compared to analyst estimates of $137.15 million. During the same period last year, the company posted ($0.05) earnings per share. The firm's revenue was up 43.0% compared to the same quarter last year. On average, research analysts predict that MaxLinear, Inc will post 0.52 EPS for the current fiscal year.

Insider Activity

In other news, insider Steven G. Litchfield sold 20,000 shares of the firm's stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $15.68, for a total transaction of $313,600.00. Following the completion of the sale, the insider directly owned 343,435 shares in the company, valued at $5,385,060.80. This trade represents a 5.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Connie H. Kwong sold 15,050 shares of the firm's stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $51.29, for a total value of $771,914.50. Following the sale, the insider owned 53,065 shares of the company's stock, valued at $2,721,703.85. This represents a 22.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 64,097 shares of company stock worth $1,757,215 over the last three months. 7.70% of the stock is currently owned by corporate insiders.

Institutional Trading of MaxLinear

Several large investors have recently modified their holdings of the business. Principal Financial Group Inc. grew its stake in shares of MaxLinear by 0.9% during the first quarter. Principal Financial Group Inc. now owns 395,317 shares of the semiconductor company's stock valued at $6,875,000 after acquiring an additional 3,637 shares in the last quarter. Fifth Third Bancorp grew its stake in shares of MaxLinear by 4,881.0% during the first quarter. Fifth Third Bancorp now owns 24,158 shares of the semiconductor company's stock valued at $420,000 after acquiring an additional 23,673 shares in the last quarter. Hodges Capital Management Inc. grew its stake in shares of MaxLinear by 15.3% during the first quarter. Hodges Capital Management Inc. now owns 547,690 shares of the semiconductor company's stock valued at $9,524,000 after acquiring an additional 72,579 shares in the last quarter. Strs Ohio grew its stake in shares of MaxLinear by 481.0% during the first quarter. Strs Ohio now owns 12,200 shares of the semiconductor company's stock valued at $212,000 after acquiring an additional 10,100 shares in the last quarter. Finally, Inspire Investing LLC grew its stake in shares of MaxLinear by 12.2% during the first quarter. Inspire Investing LLC now owns 29,823 shares of the semiconductor company's stock valued at $519,000 after acquiring an additional 3,243 shares in the last quarter. 90.79% of the stock is currently owned by institutional investors and hedge funds.

MaxLinear Company Profile

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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