MaxLinear (NASDAQ:MXL) Shares Down 9.5% - What's Next?

Key Points

• MaxLinear shares fell 9.5% to approximately $80.18, with trading volume 63% below the average session level.
• Analyst sentiment is mixed: five analysts rate the stock a Buy, three rate it Hold, and one rates it Sell. The consensus price target is $88.64, though recent targets range as high as $125.
• The company exceeded quarterly expectations, reporting EPS of $0.35 versus $0.33 expected and revenue of $168.85 million, up 55.2% year over year; however, it posted a negative net margin of 18.24%.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) traded down 9.5% during trading on Wednesday. The company traded as low as $80.59 and last traded at $80.1750. Approximately 1,148,582 shares were traded during mid-day trading, a decline of 63% from the average session volume of 3,101,893 shares. The stock had previously closed at $88.64.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Stifel Nicolaus raised their target price on shares of MaxLinear from $110.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Wall Street Zen raised MaxLinear from a "hold" rating to a "buy" rating in a report on Sunday, July 26th. Needham & Company LLC increased their price objective on MaxLinear from $60.00 to $100.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Weiss Ratings reissued a "sell (d-)" rating on shares of MaxLinear in a research note on Friday, July 17th. Finally, Morgan Stanley set a $125.00 price objective on MaxLinear in a research note on Monday, September 14th. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, MaxLinear has an average rating of "Hold" and a consensus price target of $88.64.

MaxLinear Price Performance

The stock's 50-day moving average is $77.17 and its 200 day moving average is $73.22. The stock has a market capitalization of $7.22 billion, a PE ratio of -66.95 and a beta of 3.93. The company has a quick ratio of 1.15, a current ratio of 1.78 and a debt-to-equity ratio of 0.26.

MaxLinear (NASDAQ:MXL - Get Free Report) last released its earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping 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 company had revenue of $168.85 million during the quarter, compared to the consensus estimate of $164.64 million. During the same quarter in the prior year, the firm earned $0.02 EPS. The company's revenue was up 55.2% compared to the same quarter last year. As a group, equities analysts predict that MaxLinear, Inc will post 0.78 earnings per share for the current year.

Insider Transactions at MaxLinear

In other MaxLinear news, CEO Kishore Seendripu sold 351,454 shares of the business's stock in a transaction that occurred on Monday, August 17th. The shares were 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 Securities & Exchange Commission, which can be accessed through this link. 7.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On MaxLinear

Several institutional investors and hedge funds have recently modified their holdings of MXL. Ameritas Advisory Services LLC bought a new stake in shares of MaxLinear in the second quarter valued at approximately $32,000. Carolina Wealth Advisors LLC bought a new position in MaxLinear during the second quarter worth $47,000. Global Retirement Partners LLC acquired a new position in MaxLinear during the 2nd quarter valued at $56,000. State of Wyoming acquired a new position in MaxLinear during the 2nd quarter valued at $126,000. Finally, CoreCap Advisors LLC acquired a new position in MaxLinear during the 2nd quarter valued at $134,000. Institutional investors and hedge funds own 90.79% of the company's stock.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that develops high-performance analog and mixed-signal integrated circuits for communications and connectivity applications. Its products are designed to help equipment manufacturers process, transmit and manage data across broadband, wired and wireless infrastructure, data center, and industrial systems.

The company's product portfolio includes broadband access and connectivity solutions, RF and microwave components, Ethernet and high-speed interconnect products, optical networking technologies, and power-management devices.

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