MaxLinear (NASDAQ:MXL) Trading Up 7% - Time to Buy?

Key Points

• MaxLinear shares rose 7% in Monday trading, briefly reaching $77.86 before last trading near $76.89, though volume was far below average.
• Analyst sentiment is mixed but constructive: several firms recently raised price targets or upgraded the stock, and MarketBeat shows a consensus rating of “Hold” with a $71 average target.
• Recent earnings topped expectations, with Q2 EPS of $0.22 versus the $0.18 estimate and revenue up 43% year over year, even as the company remains unprofitable on a net basis.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s stock price traded up 7% on Monday . The company traded as high as $77.86 and last traded at $76.8940. Approximately 523,750 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 3,096,129 shares. The stock had previously closed at $71.84.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on MXL. Stifel Nicolaus lifted their target price on shares of MaxLinear from $105.00 to $110.00 and gave the company a "buy" rating in a report on Monday, June 29th. Needham & Company LLC upgraded MaxLinear from a "hold" rating to a "buy" rating and set a $60.00 price target for the company in a research note on Friday, April 24th. Northland Securities set a $110.00 price target on MaxLinear in a research report on Wednesday, June 3rd. Benchmark started coverage on MaxLinear in a report on Wednesday, May 27th. They issued a "buy" rating and a $125.00 price objective on the stock. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $40.00 price objective on shares of MaxLinear in a research report on Friday, April 24th. Five equities research 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. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $71.00.

MaxLinear Stock Up 6.6%

The stock has a market capitalization of $6.86 billion, a price-to-earnings ratio of -50.37 and a beta of 3.91. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.70 and a quick ratio of 1.12. The business has a fifty day moving average of $91.21 and a 200 day moving average of $47.84.

MaxLinear (NASDAQ:MXL - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The semiconductor company reported $0.22 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $137.15 million. During the same period last year, the company earned ($0.05) EPS. The company's quarterly revenue was up 43.0% on a year-over-year basis. As a group, equities analysts predict that MaxLinear, Inc will post 0.52 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Connie H. Kwong sold 35,000 shares of MaxLinear stock in a transaction that occurred 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 sale, the insider owned 13,947 shares in the company, valued at approximately $1,352,301.12. This trade represents a 71.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 value of $1,155,000.00. Following the completion of the sale, the director directly 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. Insiders sold a total of 65,168 shares of company stock worth $5,559,358 over the last three months. Insiders own 7.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in MaxLinear by 4.8% during the 4th 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 in the last quarter. The Manufacturers Life Insurance Company lifted its position in shares of MaxLinear by 27.8% during the second quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company's stock worth $41,054,000 after purchasing an additional 628,719 shares in the last quarter. Invesco Ltd. lifted its position in shares of MaxLinear by 419.9% during 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 in the last quarter. Geode Capital Management LLC boosted its stake in shares of MaxLinear by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 2,038,144 shares of the semiconductor company's stock valued at $35,531,000 after purchasing an additional 28,548 shares during the period. Finally, Marshall Wace LLP boosted its stake in shares of MaxLinear by 31.8% in the third 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.

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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