MaxLinear (NASDAQ:MXL) Trading Up 6.6% - Here's Why

Key Points

• MaxLinear shares rose 6.6% in Tuesday trading, briefly reaching $92.80 and last trading around $94.61. Volume was well below average, with about 336,566 shares changing hands versus a typical 2.99 million.
• Analysts remain mixed on the stock, with recent price targets ranging from $30 to $125. MarketBeat’s overall consensus is Hold, with an average price target of $65.
• The company recently beat quarterly EPS estimates and posted 43% year-over-year revenue growth, but it still reported negative net margin and return on equity. Insider selling and strong institutional ownership were also noted, with institutions holding about 90.79% of shares.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s share price was up 6.6% during mid-day trading on Tuesday . The stock traded as high as $92.80 and last traded at $94.6120. Approximately 336,566 shares traded hands during trading, a decline of 89% from the average daily volume of 2,986,197 shares. The stock had previously closed at $88.76.

Wall Street Analyst Weigh In

Several analysts recently commented on MXL shares. Northland Securities set a $110.00 target price on MaxLinear in a report on Wednesday, June 3rd. Susquehanna reissued a "neutral" rating and set a $30.00 price target on shares of MaxLinear in a report on Monday, April 20th. Benchmark initiated coverage on shares of MaxLinear in a report on Wednesday, May 27th. They set a "buy" rating and a $125.00 price target on the stock. Stifel Nicolaus reissued a "buy" rating and set a $105.00 price target (up from $49.00) on shares of MaxLinear in a report on Wednesday, June 3rd. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $40.00 price target on shares of MaxLinear in a report on Friday, April 24th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, MaxLinear has an average rating of "Hold" and an average price target of $65.00.

MaxLinear Trading Down 2.5%

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 company has a fifty day simple moving average of $67.15 and a 200-day simple moving average of $35.23. The company has a market capitalization of $7.75 billion, a PE ratio of -56.53 and a beta of 3.98.

MaxLinear (NASDAQ:MXL - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The semiconductor company reported $0.22 EPS for the quarter, topping the consensus estimate of $0.18 by $0.04. The business had revenue of $137.19 million for 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%.The company's quarterly revenue was up 43.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.05) EPS. Analysts predict that MaxLinear, Inc will post 0.52 EPS for the current year.

Insider Buying and Selling at MaxLinear

In related news, Director Thomas E. Pardun sold 11,000 shares of MaxLinear stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $105.00, for a total value of $1,155,000.00. Following the completion of the transaction, the director directly owned 55,252 shares in the company, valued at approximately $5,801,460. This trade represents a 16.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Connie H. Kwong sold 35,000 shares of MaxLinear stock in a transaction on 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 owned 13,947 shares of the company's stock, valued at approximately $1,352,301.12. This trade represents a 71.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 65,168 shares of company stock worth $5,559,359 in the last quarter. Company insiders own 7.70% of the company's stock.

Institutional Trading of MaxLinear

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