MaxLinear (NASDAQ:MXL) Shares Climb 4.5% - Here's Why

Key Points

• MaxLinear shares rose 4.5% to about $89.12 in midday trading, while trading volume was 88% below the stock’s average daily volume.
• Analyst sentiment improved, with Stifel and Needham raising price targets and Wall Street Zen upgrading the stock to “buy.” However, the consensus rating remained “Hold,” with an average target price of $88.64.
• MaxLinear beat quarterly expectations, reporting $0.35 in adjusted EPS and $168.85 million in revenue, up 55.2% year over year, though the company still posted a negative net margin of 18.24%.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shares shot up 4.5% during mid-day trading on Friday. The stock traded as high as $89.36 and last traded at $89.1210. 381,177 shares were traded during trading, a decline of 88% from the average daily volume of 3,094,306 shares. The stock had previously closed at $85.31.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Stifel Nicolaus boosted their target price on shares of MaxLinear from $110.00 to $120.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Wells Fargo & Company lifted their price target on MaxLinear from $42.00 to $75.00 and gave the company an "equal weight" rating in a report on Monday, July 20th. Wall Street Zen upgraded MaxLinear from a "hold" rating to a "buy" rating in a research report on Sunday, July 26th. Northland Securities set a $110.00 target price on MaxLinear in a research report on Wednesday, June 3rd. Finally, Needham & Company LLC lifted their target price on MaxLinear from $60.00 to $100.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $88.64.

MaxLinear Price Performance

The business's 50-day simple moving average is $70.82 and its 200 day simple moving average is $65.93. The company has a market capitalization of $8.67 billion, a P/E ratio of -80.69 and a beta of 3.93. The company has a current ratio of 1.78, a quick ratio of 1.15 and a debt-to-equity ratio of 0.26.

MaxLinear (NASDAQ:MXL - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The semiconductor company reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. The business had revenue of $168.85 million for the quarter, compared to analyst estimates of $164.64 million. During the same quarter last year, the business earned $0.02 earnings per share. The business's revenue for the quarter was up 55.2% on a year-over-year basis. As a group, sell-side analysts anticipate that MaxLinear, Inc will post 0.78 EPS for the current year.

Insider Activity at MaxLinear

In other news, CEO Kishore Seendripu sold 351,454 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $85.95, for a total value of $30,207,471.30. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 7.70% of the company's stock.

Institutional Investors Weigh In On MaxLinear

Hedge funds and other institutional investors have recently bought and sold shares of the business. Ameritas Advisory Services LLC bought a new position in shares of MaxLinear during the 2nd quarter valued at about $32,000. Carolina Wealth Advisors LLC acquired a new stake in MaxLinear during the second quarter valued at approximately $47,000. Global Retirement Partners LLC bought a new stake in MaxLinear during the second quarter worth approximately $56,000. State of Wyoming bought a new stake in MaxLinear during the second quarter worth approximately $126,000. Finally, CoreCap Advisors LLC acquired a new position in MaxLinear in the second quarter worth approximately $134,000. 90.79% of the stock is currently owned by institutional investors.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that designs and develops high-performance analog and mixed-signal integrated circuits. Its products are used in broadband communications, wired and wireless infrastructure, data center, networking, and industrial applications.

The company's portfolio includes solutions for broadband access and connectivity, including cable and fiber-optic infrastructure, Ethernet and high-speed interconnects, optical communications, power management, interface products, and embedded processors.

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