MaxLinear (NASDAQ:MXL) Shares Up 8.2% - Should You Buy?

Key Points

• MaxLinear shares jumped 8.2% to about $74.71 in mid-day trading, although volume was 85% below the stock’s average daily level.
• Analyst views remain mixed: the consensus rating is “Hold” with an average price target of $85, while individual targets range from $80 to $110; ratings include five Buys, four Holds, and one Sell.
• MaxLinear exceeded quarterly expectations, reporting $0.35 in earnings per share versus $0.33 expected and $168.85 million in revenue versus $164.64 million forecast. Revenue rose 55.2% year over year, but the company still posted a negative 18.24% net margin.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s stock price shot up 8.2% during mid-day trading on Wednesday . The company traded as high as $75.50 and last traded at $74.7070. 468,555 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 3,202,340 shares. The stock had previously closed at $69.02.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Susquehanna raised their price target on MaxLinear from $45.00 to $80.00 and gave the company a "neutral" rating in a research note on Friday, July 24th. Roth Capital raised 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, July 24th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MaxLinear in a research report on Friday, July 17th. Wall Street Zen upgraded shares of MaxLinear from a "hold" rating to a "buy" rating in a research note on Sunday, July 26th. Finally, Northland Securities set a $110.00 price objective on shares of MaxLinear in a research note on Wednesday, June 3rd. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $85.00.

MaxLinear Stock Up 10.0%

The firm has a fifty day simple moving average of $83.46 and a 200-day simple moving average of $54.17. The firm has a market cap of $6.88 billion, a price-to-earnings ratio of -63.77 and a beta of 3.95. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.15 and a current ratio of 1.78.

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

Insider Transactions at MaxLinear

In other news, Director Thomas E. Pardun sold 11,000 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $105.00, for a total transaction of $1,155,000.00. Following the completion of the sale, the director owned 55,252 shares in the company, valued at $5,801,460. The trade was a 16.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 7.70% of the stock is owned by company insiders.

Institutional Trading of MaxLinear

Several institutional investors have recently added to or reduced their stakes in the company. Larson Financial Group LLC lifted its holdings in shares of MaxLinear by 161.7% during the fourth quarter. Larson Financial Group LLC now owns 1,416 shares of the semiconductor company's stock worth $25,000 after buying an additional 875 shares in the last quarter. Smartleaf Asset Management LLC grew its stake in shares of MaxLinear by 103.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company's stock valued at $25,000 after acquiring an additional 726 shares in the last quarter. Northwestern Mutual Wealth Management Co. acquired a new position in shares of MaxLinear in the fourth quarter valued at about $25,000. International Assets Investment Management LLC bought a new position in MaxLinear during the fourth quarter worth about $27,000. Finally, EverSource Wealth Advisors LLC increased its position in MaxLinear by 16.1% during the first quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company's stock worth $27,000 after acquiring an additional 217 shares during the period. 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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