MaxLinear (NASDAQ:MXL) Trading Down 5.2% - Should You Sell?

Key Points

• MaxLinear shares fell 5.2% on Friday, with heavier-than-normal trading activity but still below average volume. The stock traded between $88.50 and $94.53 after closing at $99.67 the prior session.
• Analyst sentiment has improved, with several firms raising ratings and price targets, including Loop Capital and Roth Mkm upgrading the stock to buy. Even so, MarketBeat’s consensus rating remains Hold with a consensus target price of $44.20.
• The company recently beat earnings expectations, reporting $0.22 EPS versus $0.18 expected and revenue of $137.19 million, up 43% year over year. However, profitability remains weak, and insiders have sold shares in recent months.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) fell 5.2% on Friday . The stock traded as low as $88.50 and last traded at $94.5250. 1,241,590 shares were traded during trading, a decline of 54% from the average session volume of 2,706,442 shares. The stock had previously closed at $99.67.

Wall Street Analyst Weigh In

Several research firms have weighed in on MXL. Loop Capital upgraded MaxLinear from a "hold" rating to a "buy" rating and raised their price target for the company from $17.00 to $75.00 in a report on Wednesday, April 29th. Stifel Nicolaus lifted their target price on MaxLinear from $34.00 to $49.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Wells Fargo & Company lifted their target price on MaxLinear from $18.00 to $20.00 and gave the stock an "equal weight" rating in a report on Friday, January 30th. Northland Securities set a $55.00 target price on MaxLinear in a report on Friday, April 24th. Finally, Roth Mkm upgraded MaxLinear from a "neutral" rating to a "buy" rating and set a $60.00 target price for the company in a report on Friday, April 24th. 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's stock. Based on data from MarketBeat, MaxLinear currently has a consensus rating of "Hold" and a consensus target price of $44.20.

MaxLinear Trading Down 3.0%

The stock has a fifty day moving average of $42.84 and a 200-day moving average of $26.34. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.12 and a current ratio of 1.70. The company has a market cap of $8.66 billion, a PE ratio of -63.66 and a beta of 3.95.

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

Insiders Place Their Bets

In other news, insider Steven G. Litchfield sold 20,000 shares of the business's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $15.68, for a total value of $313,600.00. Following the completion of the transaction, the insider directly owned 343,435 shares of the company's stock, valued at approximately $5,385,060.80. The trade was a 5.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Connie H. Kwong sold 35,000 shares of the business's stock in a transaction on 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 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 disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 99,097 shares of company stock valued at $5,150,815. 7.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On MaxLinear

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC lifted 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 valued at $27,000 after acquiring an additional 217 shares during the last quarter. Captrust Financial Advisors raised its stake 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 raised its stake 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 raised its stake 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. Finally, Smartleaf Asset Management LLC raised its stake in 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 buying an additional 726 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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