MaxLinear (NASDAQ:MXL) Stock Price Down 7% Following Insider Selling

Key Points

• MaxLinear shares fell 7% to $67.58 after CEO Kishore Seendripu sold 591,454 shares across two transactions for a combined $50.4 million, reducing his direct ownership by 57.73%.
• Analyst sentiment is mixed: five analysts rate the stock Buy, four Hold, and one Sell, producing a consensus Hold rating and an average price target of $85.
• MaxLinear exceeded quarterly expectations with EPS of $0.35 versus $0.33 expected and revenue of $168.85 million, up 55.2% year over year, though the company posted a negative net margin of 18.24%.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shares fell 7% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $68.12 and last traded at $67.58. 394,064 shares were traded during mid-day trading, a decline of 88% from the average session volume of 3,182,159 shares. The stock had previously closed at $72.63.

Specifically, CEO Kishore Seendripu sold 351,454 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $85.95, for a total value of $30,207,471.30. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Kishore Seendripu sold 240,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $84.28, for a total transaction of $20,227,200.00. Following the completion of the transaction, the chief executive officer directly owned 175,727 shares in the company, valued at approximately $14,810,271.56. The trade was a 57.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Benchmark initiated coverage on MaxLinear in a report on Wednesday, May 27th. They issued a "buy" rating and a $125.00 price objective for the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $40.00 target price on shares of MaxLinear in a report on Friday, April 24th. Roth Capital upped 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. Loop Capital raised MaxLinear from a "hold" rating to a "buy" rating and upped their price target for the company from $17.00 to $75.00 in a research note on Wednesday, April 29th. Finally, Susquehanna increased their price target on shares of MaxLinear from $45.00 to $80.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, MaxLinear currently has a consensus rating of "Hold" and an average price target of $85.00.

MaxLinear Stock Performance

The stock's 50-day moving average price is $82.95 and its 200 day moving average price is $56.27. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.78 and a quick ratio of 1.15. The firm has a market cap of $6.07 billion, a P/E ratio of -56.05 and a beta of 3.96.

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

Institutional Investors Weigh In On MaxLinear

A number of institutional investors have recently made changes to their positions in the company. Carolina Wealth Advisors LLC acquired a new stake in MaxLinear during the 2nd quarter worth approximately $47,000. Global Retirement Partners LLC acquired a new position in MaxLinear in the 2nd quarter valued at $56,000. State of Wyoming acquired a new position in MaxLinear in the 2nd quarter valued at $126,000. CoreCap Advisors LLC bought a new position in MaxLinear during the 2nd quarter worth $134,000. Finally, Public Employees Retirement System of Ohio bought a new position in MaxLinear during the 2nd quarter worth $147,000. 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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