MaxLinear (NASDAQ:MXL) Stock Price Up 13.9% - Should You Buy?

Key Points

• Stock move: MaxLinear shares jumped 13.9% intraday to about $93.83, trading 1.10M shares versus a 2.43M average (prior close $82.37).
• Analyst outlook: Analysts are mixed—5 Buys, 4 Holds and 1 Sell—with a consensus rating of Hold and a consensus price target of $44.20.
• Earnings vs. profitability: Q1 results beat estimates with EPS of $0.22 and revenue up 43% YoY to $137.2M, but the company remains unprofitable (negative net margin ~25.96% and negative ROE).

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s share price rose 13.9% during mid-day trading on Friday . The stock traded as high as $96.27 and last traded at $93.8290. Approximately 1,098,384 shares changed hands during mid-day trading, a decline of 55% from the average daily volume of 2,428,768 shares. The stock had previously closed at $82.37.

Wall Street Analyst Weigh In

MXL has been the subject of several analyst reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $40.00 target price on shares of MaxLinear in a report on Friday, April 24th. Loop Capital upgraded shares of MaxLinear from a "hold" rating to a "buy" rating and raised their target price for the stock from $17.00 to $75.00 in a report on Wednesday, April 29th. Benchmark raised their target price on shares of MaxLinear from $25.00 to $28.00 and gave the stock a "buy" rating in a report on Friday, January 16th. Wells Fargo & Company lifted their price objective on shares of MaxLinear from $18.00 to $20.00 and gave the company an "equal weight" rating in a report on Friday, January 30th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of MaxLinear in a report on Tuesday, April 21st. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $44.20.

MaxLinear Stock Up 18.8%

The business's 50-day simple moving average is $27.43 and its 200 day simple moving average is $20.85. The company has a current ratio of 1.70, a quick ratio of 1.12 and a debt-to-equity ratio of 0.27. The firm has a market cap of $8.76 billion, a PE ratio of -64.46 and a beta of 3.95.

MaxLinear (NASDAQ:MXL - Get Free Report) last posted 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 company had revenue of $137.19 million during 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 firm's revenue for the quarter was up 43.0% on a year-over-year basis. During the same period in the prior year, the business posted ($0.05) earnings per share. As a group, equities research analysts expect that MaxLinear, Inc will post 0.52 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Steven G. Litchfield sold 20,000 shares of the company's 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 completion of the sale, the insider owned 343,435 shares of the company's stock, valued at $5,385,060.80. This represents a 5.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Connie H. Kwong sold 4,118 shares of the company's stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $58.00, for a total transaction of $238,844.00. Following the completion of the sale, the insider directly owned 48,947 shares of the company's stock, valued at $2,838,926. This represents a 7.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 64,097 shares of company stock valued at $1,757,215 in the last ninety days. Insiders own 7.70% of the company's stock.

Institutional Investors Weigh In On MaxLinear

A number of hedge funds have recently modified their holdings of the company. Captrust Financial Advisors lifted its position in MaxLinear by 4.3% in the fourth quarter. Captrust Financial Advisors now owns 14,074 shares of the semiconductor company's stock valued at $245,000 after buying an additional 577 shares during the last quarter. State of Alaska Department of Revenue lifted its position in MaxLinear by 1.4% in the fourth quarter. State of Alaska Department of Revenue now owns 45,677 shares of the semiconductor company's stock valued at $795,000 after buying an additional 632 shares during the last quarter. ProShare Advisors LLC lifted its position in MaxLinear by 4.3% in the fourth quarter. ProShare Advisors LLC now owns 16,048 shares of the semiconductor company's stock valued at $280,000 after buying an additional 664 shares during the last quarter. Smartleaf Asset Management LLC lifted its position in shares of MaxLinear by 103.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 726 shares in the last quarter. Finally, Amalgamated Bank lifted its position in shares of MaxLinear by 3.5% during the third quarter. Amalgamated Bank now owns 23,210 shares of the semiconductor company's stock worth $373,000 after purchasing an additional 775 shares in 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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