MaxLinear (NASDAQ:MXL) Trading Up 6.7% - What's Next?

Key Points

• MaxLinear shares rose 6.7% in mid-day trading, reaching as high as $96 after closing at $88.76 the prior session. Trading volume was below average, with about 1.05 million shares changing hands.
• Recent analyst activity has been mixed, but several firms turned more bullish, including Northland Securities with a $110 price target and Needham upgrading the stock to buy. Overall, Wall Street’s consensus rating remains Hold with an average target of $59.40.
• MaxLinear’s latest quarterly results beat earnings expectations, reporting $0.22 EPS versus estimates of $0.18, while revenue came in roughly in line at $137.19 million and rose 43% year over year. The company also noted insider selling and heavy institutional ownership, with hedge funds and other institutions holding about 90.79% of shares.

Shares of MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shot up 6.7% during mid-day trading on Wednesday . The stock traded as high as $96.00 and last traded at $94.69. 1,053,633 shares changed hands during trading, a decline of 64% from the average session volume of 2,922,761 shares. The stock had previously closed at $88.76.

Wall Street Analyst Weigh In

Several research firms recently weighed in on MXL. Northland Securities set a $110.00 price target on MaxLinear in a research note on Wednesday. Weiss Ratings reiterated a "sell (d-)" rating on shares of MaxLinear in a research note on Tuesday, April 21st. Stifel Nicolaus boosted 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. Susquehanna restated a "neutral" rating and set a $30.00 price target on shares of MaxLinear in a report on Monday, April 20th. Finally, Needham & Company LLC raised MaxLinear from a "hold" rating to a "buy" rating and set a $60.00 price target for the company in a research report on Friday, April 24th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, MaxLinear has an average rating of "Hold" and a consensus price target of $59.40.

MaxLinear Trading Up 7.4%

The stock has a fifty day simple moving average of $53.93 and a 200 day simple moving average of $30.34. 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 firm has a market cap of $8.54 billion, a P/E ratio of -62.71 and a beta of 3.98.

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

Insider Buying and Selling at MaxLinear

In other news, Director Thomas E. Pardun sold 11,000 shares of the business's 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 completion of the transaction, the director directly owned 55,252 shares of the company's stock, valued at $5,801,460. The trade was a 16.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Steven G. Litchfield sold 20,000 shares of the stock in a transaction that occurred 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 transaction, the insider owned 343,435 shares in the company, valued at approximately $5,385,060.80. This trade represents a 5.50% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 90,097 shares of company stock worth $5,955,815. Company insiders own 7.70% of the company's stock.

Institutional Investors Weigh In On MaxLinear

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in shares of MaxLinear by 4.8% in the fourth quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company's stock worth $232,279,000 after acquiring an additional 605,903 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in MaxLinear by 27.8% in the second quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company's stock valued at $41,054,000 after acquiring an additional 628,719 shares during the period. Invesco Ltd. boosted its position in MaxLinear by 419.9% in the fourth quarter. Invesco Ltd. now owns 2,149,589 shares of the semiconductor company's stock worth $37,467,000 after purchasing an additional 1,736,141 shares during the last quarter. Geode Capital Management LLC boosted its position in MaxLinear by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 2,038,144 shares of the semiconductor company's stock worth $35,531,000 after purchasing an additional 28,548 shares during the last quarter. Finally, Marshall Wace LLP grew its stake in shares of MaxLinear by 31.8% during the 3rd quarter. Marshall Wace LLP now owns 1,826,259 shares of the semiconductor company's stock valued at $29,366,000 after purchasing an additional 441,088 shares during the period. 90.79% of the stock is currently owned by hedge funds and other institutional investors.

MaxLinear Company Profile

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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