MaxLinear (NASDAQ:MXL) Stock Price Up 11% - Still a Buy?

Key Points

• MaxLinear shares jumped 11% on Monday, briefly reaching $103.50, even as trading volume came in well below average.
• Analyst sentiment is mixed, but recent updates were more positive: Stifel raised its target to $110 with a buy rating, Benchmark started coverage at $125, and Wall Street Zen upgraded the stock to buy. Still, the consensus rating remains Hold with an average price target of $65.50.
• The company’s latest quarter beat earnings expectations, with EPS of $0.22 versus $0.18 expected and revenue up 43% year over year. However, insiders have been selling shares, and the stock remains volatile with a beta of 3.91.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s stock price rose 11% on Monday . The stock traded as high as $103.50 and last traded at $103.3540. Approximately 954,738 shares traded hands during mid-day trading, a decline of 69% from the average session volume of 3,108,558 shares. The stock had previously closed at $93.12.

Analyst Upgrades and Downgrades

Several research analysts have commented on MXL shares. Susquehanna restated a "neutral" rating and issued a $30.00 price objective on shares of MaxLinear in a report on Monday, April 20th. Stifel Nicolaus boosted their price target on shares of MaxLinear from $105.00 to $110.00 and gave the company a "buy" rating in a research report on Monday, June 29th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $40.00 price target on shares of MaxLinear in a research note on Friday, April 24th. Wall Street Zen upgraded shares of MaxLinear from a "hold" rating to a "buy" rating in a report on Sunday. Finally, Benchmark initiated coverage on MaxLinear in a research report on Wednesday, May 27th. They set a "buy" rating and a $125.00 price objective on the stock. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $65.50.

MaxLinear Stock Performance

The company has a market capitalization of $9.12 billion, a P/E ratio of -66.79 and a beta of 3.91. The company's 50 day moving average is $87.41 and its 200-day moving average is $42.94. The company has a current ratio of 1.70, a quick ratio of 1.12 and a debt-to-equity ratio of 0.27.

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

Insiders Place Their Bets

In other MaxLinear news, insider Connie H. Kwong sold 35,000 shares of MaxLinear stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $96.96, for a total value of $3,393,600.00. Following the completion of the transaction, the insider directly owned 13,947 shares of the company's stock, valued at approximately $1,352,301.12. The trade was a 71.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Thomas E. Pardun sold 11,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $105.00, for a total transaction of $1,155,000.00. Following the sale, the director owned 55,252 shares in the company, valued at approximately $5,801,460. The trade was a 16.60% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 65,168 shares of company stock worth $5,559,358. Insiders own 7.70% of the company's stock.

Institutional Trading of MaxLinear

Several institutional investors have recently added to or reduced their stakes in MXL. Glenmede Trust Co. NA lifted its holdings in shares of MaxLinear by 66.2% during the first quarter. Glenmede Trust Co. NA now owns 37,836 shares of the semiconductor company's stock valued at $658,000 after purchasing an additional 15,072 shares in the last quarter. Bank of America Corp DE raised its position in MaxLinear by 6.9% in the 1st quarter. Bank of America Corp DE now owns 641,034 shares of the semiconductor company's stock worth $11,148,000 after buying an additional 41,119 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in MaxLinear by 16.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company's stock valued at $27,000 after acquiring an additional 217 shares during the period. California State Teachers Retirement System lifted its stake in MaxLinear by 28.4% during the 1st quarter. California State Teachers Retirement System now owns 104,040 shares of the semiconductor company's stock valued at $1,809,000 after acquiring an additional 22,993 shares during the period. Finally, Quantinno Capital Management LP boosted its holdings in shares of MaxLinear by 14.3% during the 1st quarter. Quantinno Capital Management LP now owns 47,858 shares of the semiconductor company's stock valued at $832,000 after acquiring an additional 5,982 shares during the last quarter. 90.79% of the stock is currently owned by hedge funds and other 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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