MaxLinear Target of Unusually Large Options Trading (NASDAQ:MXL)

Key Points

• Unusually heavy options activity hit MaxLinear, with investors buying 8,566 call options on Monday, about 74% above the stock’s typical call volume.
• Several insiders recently sold shares, including Connie H. Kwong and Director Thomas E. Pardun, and insiders have sold 65,168 shares worth $5.56 million over the past 90 days.
• MaxLinear shares fell 3.2% to $88.42 despite strong institutional ownership, and the company recently beat quarterly EPS estimates while posting 43% year-over-year revenue growth.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) was the target of unusually large options trading activity on Monday. Investors purchased 8,566 call options on the company. This represents an increase of approximately 74% compared to the typical volume of 4,914 call options.

Insider Activity at MaxLinear

In related news, insider Connie H. Kwong sold 35,000 shares of the company's stock in a transaction that occurred 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 transaction, the insider directly owned 13,947 shares in the company, valued at approximately $1,352,301.12. This represents a 71.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Thomas E. Pardun sold 11,000 shares of the stock in a transaction that occurred 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 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 disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 65,168 shares of company stock worth $5,559,358. Corporate insiders own 7.70% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. boosted its position in shares of MaxLinear by 419.9% in the 4th quarter. Invesco Ltd. now owns 2,149,589 shares of the semiconductor company's stock valued at $37,467,000 after purchasing an additional 1,736,141 shares during the period. Paradigm Capital Management Inc. NY boosted its holdings in MaxLinear by 582.7% in the 4th quarter. Paradigm Capital Management Inc. NY now owns 861,000 shares of the semiconductor company's stock valued at $15,007,000 after purchasing an additional 734,875 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in 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 acquiring an additional 628,719 shares during the period. Defiance ETFs LLC acquired a new position in shares of MaxLinear during the 4th quarter worth $10,944,000. Finally, Vanguard Group Inc. increased its holdings in MaxLinear by 4.8% in the fourth quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company's stock valued at $232,279,000 after buying an additional 605,903 shares in the last quarter. Hedge funds and other institutional investors own 90.79% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of MaxLinear in a research note on Tuesday, April 21st. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $40.00 target price on shares of MaxLinear in a research report on Friday, April 24th. Susquehanna restated a "neutral" rating and set a $30.00 price target on shares of MaxLinear in a research note on Monday, April 20th. Northland Securities set a $110.00 price objective on MaxLinear in a research note on Wednesday, June 3rd. Finally, Stifel Nicolaus boosted their price objective on MaxLinear from $105.00 to $110.00 and gave the company a "buy" rating in a report on Monday, June 29th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, MaxLinear currently has an average rating of "Hold" and an average price target of $65.50.

MaxLinear Stock Down 3.2%

Shares of MaxLinear stock traded down $2.88 during trading hours on Monday, reaching $88.42. 1,466,088 shares of the company were exchanged, compared to its average volume of 3,102,660. MaxLinear has a 1 year low of $12.77 and a 1 year high of $128.30. The stock's fifty day moving average is $91.19 and its 200 day moving average is $45.53. 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 $7.92 billion, a PE ratio of -58.12 and a beta of 3.91.

MaxLinear (NASDAQ:MXL - Get Free Report) last released its 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. The firm 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% compared to the same quarter last year. During the same period last year, the business posted ($0.05) earnings per share. As a group, equities research analysts forecast that MaxLinear will post 0.52 earnings per share for the current year.

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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