MaxLinear (NASDAQ:MXL) Shares Gap Down - Should You Sell?

Key Points

• MaxLinear shares gapped down Tuesday, opening at $84.92 after closing at $96.44, before last trading around $91.38.
• Analyst views are mixed, but the stock currently carries an average “Hold” rating and a consensus price target of $65.00, even though several firms have recently issued Buy ratings and higher targets.
• The company recently beat quarterly EPS and revenue estimates, but it also has negative net margin and heavy insider selling over the last 90 days, which may be weighing on sentiment.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $96.44, but opened at $84.92. MaxLinear shares last traded at $91.3840, with a volume of 717,443 shares.

Analyst Ratings Changes

MXL has been the subject of several research reports. Roth Mkm raised shares of MaxLinear from a "neutral" rating to a "buy" rating and set a $60.00 price target for the company in a report on Friday, April 24th. Stifel Nicolaus reiterated a "buy" rating and set a $105.00 price objective (up from $49.00) on shares of MaxLinear in a research note on Wednesday, June 3rd. Benchmark started coverage on shares of MaxLinear in a report on Wednesday, May 27th. They issued a "buy" rating and a $125.00 target price on the stock. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $40.00 target price on shares of MaxLinear in a research note on Friday, April 24th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MaxLinear in a report on Tuesday, April 21st. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, MaxLinear has an average rating of "Hold" and a consensus target price of $65.00.

MaxLinear Price Performance

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 stock has a market capitalization of $7.90 billion, a price-to-earnings ratio of -58.05 and a beta of 3.98. The business's 50 day simple moving average is $74.10 and its 200-day simple moving average is $37.78.

MaxLinear (NASDAQ:MXL - Get Free Report) last announced its quarterly earnings results 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 company had revenue of $137.19 million for the quarter, compared to analyst estimates of $137.15 million. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. MaxLinear's revenue 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. Research analysts anticipate that MaxLinear, Inc will post 0.52 earnings per share for the current year.

Insider Buying and Selling at MaxLinear

In other MaxLinear news, insider Connie H. Kwong sold 35,000 shares of MaxLinear stock in a transaction on 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 $1,352,301.12. The trade was a 71.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Thomas E. Pardun sold 11,000 shares of the business's stock in a transaction on 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 transaction, the director owned 55,252 shares of the company's stock, valued at $5,801,460. This trade represents a 16.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 65,168 shares of company stock worth $5,559,358 in the last ninety days. 7.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On MaxLinear

A number of institutional investors and hedge funds have recently bought and sold shares of MXL. Royal Bank of Canada raised its position in shares of MaxLinear by 3.1% during the 1st quarter. Royal Bank of Canada now owns 72,664 shares of the semiconductor company's stock worth $789,000 after buying an additional 2,204 shares in the last quarter. AQR Capital Management LLC raised its holdings in MaxLinear by 56.0% during the first quarter. AQR Capital Management LLC now owns 296,297 shares of the semiconductor company's stock worth $3,218,000 after purchasing an additional 106,355 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in MaxLinear by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,437 shares of the semiconductor company's stock worth $515,000 after purchasing an additional 2,043 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in MaxLinear by 0.4% in the first quarter. Goldman Sachs Group Inc. now owns 535,230 shares of the semiconductor company's stock worth $5,813,000 after purchasing an additional 2,039 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in MaxLinear by 23.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 182,362 shares of the semiconductor company's stock worth $1,980,000 after purchasing an additional 35,152 shares during the period. 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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