MaxLinear (NASDAQ:MXL) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded MaxLinear from “buy” to “hold” in a research note issued Saturday, adding to a mixed analyst backdrop for the stock.
• Analyst opinions remain varied, with recent ratings ranging from buy to sell; MarketBeat data shows an overall Hold consensus and an average price target of $65.00.
• MaxLinear reported better-than-expected quarterly results, posting $0.22 EPS versus $0.18 expected and revenue of $137.19 million, while shares were trading near $96.60 after a strong run up from the 52-week low.

MaxLinear (NASDAQ:MXL - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

MXL has been the subject of a number of other reports. Loop Capital raised shares of MaxLinear from a "hold" rating to a "buy" rating and increased their target price for the company from $17.00 to $75.00 in a report on Wednesday, April 29th. Weiss Ratings reissued a "sell (d-)" rating on shares of MaxLinear in a research note on Tuesday, April 21st. Susquehanna restated a "neutral" rating and issued a $30.00 price target on shares of MaxLinear in a report on Monday, April 20th. Benchmark initiated coverage on MaxLinear in a research note on Wednesday, May 27th. They issued a "buy" rating and a $125.00 price objective for the company. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $40.00 price objective on shares of MaxLinear in a report on Friday, April 24th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $65.00.

MaxLinear Stock Performance

NASDAQ:MXL opened at $96.60 on Friday. The company has a quick ratio of 1.12, a current ratio of 1.70 and a debt-to-equity ratio of 0.27. MaxLinear has a fifty-two week low of $12.77 and a fifty-two week high of $106.28. The stock has a market cap of $8.65 billion, a PE ratio of -63.55 and a beta of 3.98. The firm's fifty day simple moving average is $79.69 and its 200-day simple moving average is $39.68.

MaxLinear (NASDAQ:MXL - Get Free Report) last announced 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. The firm had revenue of $137.19 million during the quarter, compared to analysts' expectations of $137.15 million. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. The business's revenue for the quarter was up 43.0% compared to the same quarter last year. During the same quarter last year, the business earned ($0.05) earnings per share. Analysts expect that MaxLinear will post 0.52 earnings per share for the current fiscal year.

Insider Activity

In other MaxLinear news, insider Connie H. Kwong sold 35,000 shares of the company's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $96.96, for a total value of $3,393,600.00. Following the sale, the insider owned 13,947 shares of the company's stock, valued at $1,352,301.12. This represents a 71.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 transaction of $1,155,000.00. Following the completion of the sale, the director owned 55,252 shares in the company, valued at $5,801,460. This represents a 16.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 65,168 shares of company stock valued at $5,559,358 over the last 90 days. 7.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Invesco Ltd. increased its position in MaxLinear by 419.9% during the 4th quarter. Invesco Ltd. now owns 2,149,589 shares of the semiconductor company's stock worth $37,467,000 after purchasing an additional 1,736,141 shares in the last quarter. Paradigm Capital Management Inc. NY raised its stake in MaxLinear by 582.7% in the 4th quarter. Paradigm Capital Management Inc. NY now owns 861,000 shares of the semiconductor company's stock valued at $15,007,000 after purchasing an additional 734,875 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in MaxLinear by 27.8% in 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 in the last quarter. Defiance ETFs LLC purchased a new position in MaxLinear in the 4th quarter valued at about $10,944,000. Finally, Vanguard Group Inc. boosted its stake in shares of MaxLinear by 4.8% during the 4th quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company's stock worth $232,279,000 after purchasing an additional 605,903 shares during the last quarter. 90.79% of the stock is currently owned by institutional investors and hedge funds.

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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