MaxLinear (NASDAQ:MXL) Shares Down 11% - Here's Why

Key Points

• MaxLinear's stock dropped 11% to $15.59 amid a trading volume decrease of 37%, indicating investor concern following its recent earnings release.
• The company reported Q3 earnings of $0.14 per share, exceeding estimates but still reflecting a significant year-over-year decline in profitability.
• Analysts have varied ratings on MaxLinear, with price targets ranging from $15.00 to $25.00, suggesting mixed sentiment about the stock's future performance.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s stock price was down 11% during trading on Friday . The stock traded as low as $15.57 and last traded at $15.59. Approximately 970,013 shares traded hands during trading, a decline of 37% from the average daily volume of 1,535,307 shares. The stock had previously closed at $17.52.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on MXL shares. Susquehanna raised their price target on shares of MaxLinear from $11.00 to $15.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Weiss Ratings reissued a "sell (d-)" rating on shares of MaxLinear in a research note on Wednesday, October 8th. Stifel Nicolaus set a $23.00 price target on MaxLinear in a report on Friday. Benchmark reaffirmed a "buy" rating and issued a $25.00 price objective on shares of MaxLinear in a research report on Friday. Finally, Wells Fargo & Company boosted their price objective on MaxLinear from $13.00 to $18.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 24th. Three analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $19.94.

MaxLinear Stock Performance

The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.14 and a current ratio of 1.55. The company's 50 day moving average price is $16.17 and its 200-day moving average price is $14.04. The company has a market cap of $1.34 billion, a PE ratio of -6.24 and a beta of 1.77.

MaxLinear (NASDAQ:MXL - Get Free Report) last released its earnings results on Thursday, October 23rd. The semiconductor company reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.02. MaxLinear had a negative return on equity of 18.16% and a negative net margin of 55.53%.The business had revenue of $126.46 million during the quarter, compared to the consensus estimate of $124.66 million. During the same period last year, the business posted ($0.36) earnings per share. The business's revenue for the quarter was up 56.0% on a year-over-year basis. MaxLinear has set its Q4 2025 guidance at EPS. Equities research analysts anticipate that MaxLinear, Inc will post -0.37 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other MaxLinear news, insider Steven G. Litchfield sold 102,157 shares of the stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $17.28, for a total transaction of $1,765,272.96. Following the completion of the transaction, the insider owned 312,203 shares in the company, valued at $5,394,867.84. This trade represents a 24.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 7.80% of the stock is owned by corporate insiders.

Institutional Trading of MaxLinear

A number of institutional investors have recently modified their holdings of MXL. SG Americas Securities LLC bought a new stake in MaxLinear during the 3rd quarter valued at $460,000. Louisiana State Employees Retirement System lifted its holdings in MaxLinear by 2.5% during the 3rd quarter. Louisiana State Employees Retirement System now owns 37,600 shares of the semiconductor company's stock worth $605,000 after purchasing an additional 900 shares in the last quarter. Moody Aldrich Partners LLC purchased a new position in MaxLinear during the 3rd quarter valued at about $2,291,000. CWM LLC increased its position in shares of MaxLinear by 57.2% during the third quarter. CWM LLC now owns 28,259 shares of the semiconductor company's stock valued at $454,000 after buying an additional 10,287 shares during the period. Finally, Inspire Investing LLC boosted its position in shares of MaxLinear by 5.3% in the third quarter. Inspire Investing LLC now owns 28,759 shares of the semiconductor company's stock valued at $462,000 after acquiring an additional 1,455 shares during the period. 90.79% of the stock is currently owned by hedge funds and other institutional investors.

About MaxLinear

MaxLinear, Inc provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.