MaxLinear (NASDAQ:MXL) Stock Price Down 10.2% - Here's What Happened

Key Points

• MaxLinear shares fell 10.2% in mid-day trading, dropping from a prior close of $102.27 to around $91.81 as volume came in below average.
• Analysts remain mixed on the stock: recent price target updates ranged from $40 to $75, and the overall consensus rating is still Hold with an average target price of $44.20.
• The company reported better-than-expected quarterly earnings, beating EPS estimates and posting 43% year-over-year revenue growth, even as insider selling and heavy institutional ownership remained notable.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shares were down 10.2% during mid-day trading on Tuesday . The stock traded as low as $92.78 and last traded at $91.8060. Approximately 1,802,074 shares changed hands during trading, a decline of 29% from the average daily volume of 2,527,556 shares. The stock had previously closed at $102.27.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on MXL shares. Northland Securities set a $55.00 target price on shares of MaxLinear in a research note on Friday, April 24th. Needham & Company LLC upgraded shares of MaxLinear from a "hold" rating to a "buy" rating and set a $60.00 price target for the company in a research note on Friday, April 24th. Stifel Nicolaus upped their price objective on MaxLinear from $34.00 to $49.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $40.00 price objective on shares of MaxLinear in a research note on Friday, April 24th. Finally, Loop Capital raised MaxLinear from a "hold" rating to a "buy" rating and boosted their target price for the stock from $17.00 to $75.00 in a research note on Wednesday, April 29th. Five research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, MaxLinear presently has a consensus rating of "Hold" and an average target price of $44.20.

MaxLinear Stock Performance

The company has a market capitalization of $8.08 billion, a price-to-earnings ratio of -59.40 and a beta of 3.95. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.70 and a quick ratio of 1.12. The stock has a 50 day simple moving average of $30.74 and a two-hundred day simple moving average of $22.03.

MaxLinear (NASDAQ:MXL - Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The semiconductor company reported $0.22 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.04. The business had revenue of $137.19 million for the quarter, compared to the consensus estimate of $137.15 million. MaxLinear had a negative return on equity of 2.33% and a negative net margin of 25.96%.The business's revenue for the quarter was up 43.0% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.05) EPS. As a group, analysts anticipate that MaxLinear, Inc will post 0.52 earnings per share for the current year.

Insider Activity at MaxLinear

In related news, insider Steven G. Litchfield sold 20,000 shares of MaxLinear stock in a transaction on Friday, March 6th. The shares were sold at an average price of $15.68, for a total transaction of $313,600.00. Following the sale, the insider directly owned 343,435 shares in the company, valued at $5,385,060.80. This trade represents a 5.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Connie H. Kwong sold 35,000 shares of the firm's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $96.96, for a total value of $3,393,600.00. Following the transaction, the insider directly owned 13,947 shares in the company, valued at approximately $1,352,301.12. The trade was a 71.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 99,097 shares of company stock worth $5,150,815 over the last quarter. 7.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On MaxLinear

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MXL. Summit Global Investments grew its position in shares of MaxLinear by 15.4% during the first quarter. Summit Global Investments now owns 66,942 shares of the semiconductor company's stock worth $1,164,000 after acquiring an additional 8,935 shares during the last quarter. Dimensional Fund Advisors LP increased its position in MaxLinear by 7.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,689,692 shares of the semiconductor company's stock valued at $29,376,000 after acquiring an additional 113,058 shares during the period. KBC Group NV purchased a new stake in MaxLinear during the 1st quarter valued at approximately $35,000. Illinois Municipal Retirement Fund lifted its position in MaxLinear by 22.4% during the 1st quarter. Illinois Municipal Retirement Fund now owns 43,111 shares of the semiconductor company's stock worth $750,000 after acquiring an additional 7,880 shares during the period. Finally, Principal Financial Group Inc. grew its stake in shares of MaxLinear by 0.9% in the 1st quarter. Principal Financial Group Inc. now owns 395,317 shares of the semiconductor company's stock valued at $6,875,000 after purchasing an additional 3,637 shares during the last quarter. Hedge funds and other 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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