MaxLinear (NASDAQ:MXL) Shares Down 4.6% - Here's Why

Key Points

• MaxLinear shares fell 4.6% to $68.33 in midday trading, with volume down 69% versus the average daily level.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy, four a Hold and one a Sell. Price targets range from $40 to $100, with an average target of $85.
• The company beat quarterly expectations, reporting $0.35 in EPS and $168.85 million in revenue, up 55.2% year over year. However, insiders sold more than 50,000 shares worth approximately $4.8 million over the past 90 days.

Shares of MaxLinear, Inc (NASDAQ:MXL - Get Free Report) fell 4.6% on Monday . The stock traded as low as $67.11 and last traded at $68.33. Approximately 987,134 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 3,208,914 shares. The stock had previously closed at $71.59.

Wall Street Analyst Weigh In

MXL has been the topic of a number of recent analyst reports. Wall Street Zen upgraded MaxLinear from a "hold" rating to a "buy" rating in a research note on Sunday. Susquehanna increased their price target on shares of MaxLinear from $45.00 to $80.00 and gave the company a "neutral" rating in a research report on Friday. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $40.00 price objective on shares of MaxLinear in a report on Friday, April 24th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MaxLinear in a research report on Friday, July 17th. Finally, Needham & Company LLC boosted their target price on shares of MaxLinear from $60.00 to $100.00 and gave the company a "buy" rating in a research note on Friday. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, MaxLinear has an average rating of "Hold" and an average price target of $85.00.

MaxLinear Price Performance

The firm's 50 day moving average price is $90.16 and its two-hundred day moving average price is $50.11. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.78 and a quick ratio of 1.15. The stock has a market cap of $5.69 billion, a PE ratio of -53.04 and a beta of 3.91.

MaxLinear (NASDAQ:MXL - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. The company had revenue of $168.85 million for the quarter, compared to analysts' expectations of $164.64 million. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. MaxLinear's revenue was up 55.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.02 EPS. On average, research analysts expect that MaxLinear, Inc will post 0.5 earnings per share for the current year.

Insider Buying and Selling at MaxLinear

In related news, insider Connie H. Kwong sold 35,000 shares of the 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 sale, the insider owned 13,947 shares of the company's stock, valued at approximately $1,352,301.12. This represents a 71.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Thomas E. Pardun sold 11,000 shares of the stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $105.00, for a total value of $1,155,000.00. Following the sale, the director directly owned 55,252 shares in the company, valued at $5,801,460. This trade represents a 16.60% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 50,118 shares of company stock worth $4,787,444. Company insiders own 7.70% of the company's stock.

Institutional Investors Weigh In On MaxLinear

Hedge funds and other institutional investors have recently modified their holdings of the stock. Larson Financial Group LLC boosted its position in shares of MaxLinear by 161.7% in the fourth quarter. Larson Financial Group LLC now owns 1,416 shares of the semiconductor company's stock valued at $25,000 after acquiring an additional 875 shares during the period. Smartleaf Asset Management LLC lifted its stake in MaxLinear by 103.0% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 726 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in MaxLinear in the 4th quarter worth approximately $25,000. International Assets Investment Management LLC bought a new position in MaxLinear in the 4th quarter valued at $27,000. Finally, EverSource Wealth Advisors LLC grew its position in shares of MaxLinear by 16.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company's stock valued at $27,000 after purchasing an additional 217 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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