MaxLinear (NASDAQ:MXL) Shares Down 15.1% - Here's What Happened

Key Points

• MaxLinear shares fell 15.1% on Thursday, closing at $48.24 after trading as low as $49.08; trading volume was about 80% below its average.
• The company reported quarterly EPS of $0.62, beating the $0.56 consensus, while revenue of $218.1 million also topped estimates and rose 72.4% year over year.
• Analysts’ average rating was “Moderate Buy,” with an average price target of $94.30, despite ratings ranging from sell to strong buy.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shares fell 15.1% on Thursday. The stock traded as low as $49.08 and last traded at $48.2410. Approximately 643,294 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 3,147,556 shares. The stock had previously closed at $56.85.

Analyst Ratings Changes

MXL has been the subject of several analyst reports. Needham & Company LLC raised their price objective on shares of MaxLinear from $60.00 to $100.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Stifel Nicolaus raised their price target on MaxLinear from $110.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Weiss Ratings restated a "sell (d-)" rating on shares of MaxLinear in a research report on Thursday, October 15th. Susquehanna set a $70.00 price target on shares of MaxLinear in a research report on Friday, October 23rd. Finally, Morgan Stanley set a $125.00 price target on MaxLinear in a report on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, MaxLinear currently has an average rating of "Moderate Buy" and an average target price of $94.30.

MaxLinear Trading Down 21.8%

The firm's 50 day moving average price is $76.92 and its 200-day moving average price is $59.99. The stock has a market cap of $4.05 billion, a P/E ratio of -120.04 and a beta of 3.97. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.22 and a quick ratio of 1.57.

MaxLinear (NASDAQ:MXL - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The semiconductor company reported $0.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.06. MaxLinear had a positive return on equity of 12.89% and a negative net margin of 4.45%. The business had revenue of $218.06 million during the quarter, compared to the consensus estimate of $214.95 million. During the same period in the previous year, the company posted $0.14 EPS. The business's quarterly revenue was up 72.4% compared to the same quarter last year. As a group, equities research analysts forecast that MaxLinear, Inc will post 1.10 earnings per share for the current year.

Insider Activity

In related news, CEO Kishore Seendripu sold 351,454 shares of MaxLinear stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $85.95, for a total transaction of $30,207,471.30. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 7.70% of the company's stock.

Hedge Funds Weigh In On MaxLinear

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MXL. Allspring Global Investments Holdings LLC lifted its stake in shares of MaxLinear by 0.4% in the third quarter. Allspring Global Investments Holdings LLC now owns 50,881 shares of the semiconductor company's stock worth $4,687,000 after acquiring an additional 181 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of MaxLinear by 16.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 217 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of MaxLinear by 16.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the semiconductor company's stock valued at $215,000 after acquiring an additional 232 shares during the period. Carolina Wealth Advisors LLC grew its position in MaxLinear by 65.0% in the 3rd quarter. Carolina Wealth Advisors LLC now owns 612 shares of the semiconductor company's stock worth $55,000 after purchasing an additional 241 shares during the last quarter. Finally, Ameritas Advisory Services LLC acquired a new stake in MaxLinear in the 2nd quarter valued at approximately $32,000. Hedge funds and other institutional investors own 90.79% of the company's stock.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that designs, develops and sells integrated circuits and related solutions for broadband communications, wired and wireless infrastructure, data centers, industrial applications and consumer electronics. Its products are used by equipment manufacturers and service providers to support the transmission, processing and management of voice, video and data.

The company's portfolio includes broadband access system-on-chip products, Ethernet transceivers and controllers, high-speed interconnect and communications devices, radio-frequency and analog products, optical and copper connectivity solutions, and power-management components.

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