MaxLinear (NASDAQ:MXL) Shares Gap Down - Time to Sell?

Key Points

• MaxLinear shares fell sharply, opening at $63.92 after closing at $66.61 and later trading near $61.89, a decline of about 5.1%. The stock’s 50-day moving average was $82.17 versus a 200-day average of $57.29.
• Analyst sentiment is mixed but improving: five analysts rate the stock a Buy, four Hold, and one Sell. The consensus rating is Hold, with an average price target of $85, while some firms raised targets as high as $100.
• MaxLinear beat quarterly expectations, reporting $0.35 in EPS versus $0.33 expected and $168.85 million in revenue, up 55.2% year over year. However, insiders sold approximately $51.6 million of shares over the past three months, including a $30.2 million sale by the CEO.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $66.61, but opened at $63.92. MaxLinear shares last traded at $61.8930, with a volume of 482,798 shares traded.

Wall Street Analyst Weigh In

Several analysts have weighed in on MXL shares. Susquehanna boosted their target price on shares of MaxLinear from $45.00 to $80.00 and gave the company a "neutral" rating in a research note on Friday, July 24th. Needham & Company LLC raised their price target on shares of MaxLinear from $60.00 to $100.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Wall Street Zen raised shares of MaxLinear from a "hold" rating to a "buy" rating in a report on Sunday, July 26th. Wells Fargo & Company lifted their price target on shares of MaxLinear from $42.00 to $75.00 and gave the company an "equal weight" rating in a report on Monday, July 20th. Finally, Loop Capital raised shares of MaxLinear from a "hold" rating to a "buy" rating and boosted their price objective for the company from $17.00 to $75.00 in a research report on Wednesday, April 29th. 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. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $85.00.

MaxLinear Stock Down 5.1%

The firm has a market cap of $5.73 billion, a price-to-earnings ratio of -53.20 and a beta of 3.96. The company has a current ratio of 1.78, a quick ratio of 1.15 and a debt-to-equity ratio of 0.26. The stock has a 50-day moving average of $82.17 and a 200-day moving average of $57.29.

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

Insider Buying and Selling at MaxLinear

In related news, Director Thomas E. Pardun sold 11,000 shares of the stock in a transaction dated 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 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Kishore Seendripu sold 351,454 shares of MaxLinear stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $85.95, for a total transaction of $30,207,471.30. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 602,454 shares of company stock valued at $51,589,671. Corporate insiders own 7.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of MXL. California State Teachers Retirement System raised its holdings in shares of MaxLinear by 12,029.5% during the second quarter. California State Teachers Retirement System now owns 12,619,533 shares of the semiconductor company's stock valued at $1,615,679,000 after buying an additional 12,515,493 shares during the last quarter. Ameritas Advisory Services LLC acquired a new position in shares of MaxLinear during the second quarter worth approximately $32,000. Wedmont Private Capital bought a new position in MaxLinear in the 2nd quarter worth approximately $458,000. HB Wealth Management LLC bought a new position in MaxLinear in the 2nd quarter worth approximately $299,000. Finally, Nykredit A S acquired a new stake in MaxLinear in the 2nd quarter valued at approximately $422,000. Institutional investors own 90.79% of the company's stock.

MaxLinear Company Profile

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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