MaxLinear (NASDAQ:MXL) Shares Gap Down - Here's What Happened

Key Points

• MaxLinear shares fell sharply, opening at $79.09 versus the prior close of $84.76 and later trading around $76.88, down 13.6%.
• The company reported better-than-expected quarterly results, with EPS of $0.35 versus the $0.33 consensus estimate and revenue of $168.85 million, up 55.2% year over year.
• Analyst sentiment remains mixed: five analysts rate the stock Buy, four Hold and one Sell, producing an overall “Hold” rating and an average price target of $85.00.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $84.76, but opened at $79.09. MaxLinear shares last traded at $76.8760, with a volume of 550,890 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on MXL shares. Wells Fargo & Company increased their price objective on shares of MaxLinear from $42.00 to $75.00 and gave the stock an "equal weight" rating in a research report on Monday, July 20th. Benchmark assumed coverage on shares of MaxLinear in a research report on Wednesday, May 27th. They issued a "buy" rating and a $125.00 price objective on the stock. Stifel Nicolaus upped their target price on shares of MaxLinear from $110.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Northland Securities set a $110.00 target price on MaxLinear in a report on Wednesday, June 3rd. Finally, Roth Capital lifted their price target on MaxLinear from $60.00 to $100.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $85.00.

MaxLinear Trading Down 13.6%

The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.15 and a current ratio of 1.78. The business has a 50-day simple moving average of $82.95 and a two-hundred day simple moving average of $55.90. The stock has a market cap of $6.64 billion, a price-to-earnings ratio of -61.98 and a beta of 3.96.

MaxLinear (NASDAQ:MXL - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.02. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. The company had revenue of $168.85 million during the quarter, compared to analysts' expectations of $164.64 million. During the same period last year, the business earned $0.02 EPS. The business's quarterly revenue was up 55.2% on a year-over-year basis. As a group, research analysts forecast that MaxLinear, Inc will post 0.78 EPS for the current year.

Insider Transactions at MaxLinear

In other MaxLinear news, Director Thomas E. Pardun sold 11,000 shares of MaxLinear stock in a transaction on Tuesday, May 26th. The shares were 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 approximately $5,801,460. The trade was a 16.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 7.70% of the company's stock.

Hedge Funds Weigh In On MaxLinear

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in MaxLinear during the second quarter worth about $1,754,062,000. Invesco Ltd. increased its position in shares of 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 during the last quarter. The Manufacturers Life Insurance Company bought a new stake in shares of MaxLinear during the 2nd quarter worth approximately $165,221,000. AIGH Capital Management LLC bought a new stake in shares of MaxLinear during the 2nd quarter worth approximately $104,729,000. Finally, Paradigm Capital Management Inc. NY boosted its holdings in shares of 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 buying an additional 734,875 shares during the last quarter. Institutional investors own 90.79% of the company's stock.

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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