MaxLinear (NASDAQ:MXL) Sets New 52-Week High - Here's Why

Key Points

• Stock surge: MaxLinear hit a new 52-week high intraday at $66.55 (last $66.38), a roughly 32.9% jump from the prior close and boosting its market cap to about $6.0 billion.
• Earnings: Q1 EPS of $0.22 beat estimates of $0.18 and revenue rose 43% year-over-year to $137.19 million, but the company still reported a negative net margin (−25.96%) and negative return on equity.
• Analyst and insider activity: Several firms upgraded targets (Loop Capital to $75, Roth MKM $60) though the consensus rating remains "Hold" with an average price target of $44.20; insiders sold ~59,979 shares in the past 90 days while institutions own about 90.8%.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $66.55 and last traded at $66.3790, with a volume of 7050040 shares changing hands. The stock had previously closed at $52.01.

Analyst Ratings Changes

Several equities research analysts have weighed in on MXL shares. Stifel Nicolaus increased their target price on shares of MaxLinear from $34.00 to $49.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Susquehanna reissued a "neutral" rating and issued a $30.00 price target on shares of MaxLinear in a report on Monday, April 20th. Loop Capital upgraded shares of MaxLinear from a "hold" rating to a "buy" rating and upped their price objective for the company from $17.00 to $75.00 in a research report on Wednesday. Wells Fargo & Company raised their price objective on MaxLinear from $18.00 to $20.00 and gave the stock an "equal weight" rating in a research note on Friday, January 30th. Finally, Roth Mkm upgraded MaxLinear from a "neutral" rating to a "buy" rating and set a $60.00 target price on the stock in a report on Friday, April 24th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, MaxLinear presently has a consensus rating of "Hold" and an average price target of $44.20.

MaxLinear Stock Up 32.9%

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.12 and a current ratio of 1.70. The firm's fifty day simple moving average is $21.59 and its 200 day simple moving average is $18.75. The stock has a market capitalization of $5.98 billion, a price-to-earnings ratio of -45.74 and a beta of 1.70.

MaxLinear (NASDAQ:MXL - Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The semiconductor company reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.04. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. The company had revenue of $137.19 million during the quarter, compared to analysts' expectations of $137.15 million. During the same quarter in the prior year, the company earned ($0.05) earnings per share. The business's quarterly revenue was up 43.0% compared to the same quarter last year. On average, sell-side analysts forecast that MaxLinear, Inc will post -0.17 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Connie H. Kwong sold 15,050 shares of the company's stock in a transaction on Monday, April 27th. The shares were sold at an average price of $51.29, for a total value of $771,914.50. Following the completion of the transaction, the insider directly owned 53,065 shares of the company's stock, valued at approximately $2,721,703.85. This represents a 22.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Steven G. Litchfield sold 20,000 shares of the stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $15.68, for a total value of $313,600.00. Following the transaction, the insider owned 343,435 shares of the company's stock, valued at approximately $5,385,060.80. This trade represents a 5.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 59,979 shares of company stock valued at $1,518,371. Company insiders own 7.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Summit Global Investments acquired a new stake in shares of MaxLinear in the third quarter valued at approximately $555,000. Lisanti Capital Growth LLC acquired a new position in MaxLinear during the third quarter worth $1,180,000. AIGH Capital Management LLC acquired a new position in MaxLinear during the third quarter worth $17,809,000. Essex Investment Management Co. LLC bought a new position in MaxLinear in the third quarter valued at $3,864,000. Finally, Tudor Investment Corp ET AL grew its position in MaxLinear by 68.5% in the third quarter. Tudor Investment Corp ET AL now owns 427,195 shares of the semiconductor company's stock valued at $6,869,000 after purchasing an additional 173,709 shares in the last quarter. 90.79% of the stock is currently owned by institutional investors.

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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