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

Key Points

• MaxLinear shares gapped down sharply, opening at $63.94 versus a prior close of $71.61, before recovering to about $66.98 in trading.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $94.30 price target, though targets ranged from $70 to $100 and one firm maintained a sell rating.
• The company exceeded quarterly expectations, reporting $0.62 EPS and $218.06 million in revenue, with revenue up 72.4% year over year; institutional investors own 90.79% of the stock.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s share price gapped down before the market opened on Friday. The stock had previously closed at $71.61, but opened at $63.94. MaxLinear shares last traded at $66.9840, with a volume of 338,833 shares.

Analysts Set New Price Targets

A number of equities research analysts recently commented on MXL shares. Zacks Research upgraded shares of MaxLinear from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. Needham & Company LLC boosted their target price on MaxLinear from $60.00 to $100.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Wells Fargo & Company cut their target price on MaxLinear from $95.00 to $78.00 and set an "equal weight" rating for the company in a research note on Tuesday, October 20th. Susquehanna set a $70.00 price target on MaxLinear in a report on Friday, October 23rd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of MaxLinear in a research note on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $94.30.

MaxLinear Price Performance

The stock has a market cap of $5.97 billion, a price-to-earnings ratio of -177.45 and a beta of 3.93. The company's 50 day moving average is $77.15 and its 200 day moving average is $59.12. 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 for the quarter, topping 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 for the quarter, compared to analysts' expectations of $214.95 million. During the same quarter in the prior year, the firm posted $0.14 EPS. The company's revenue was up 72.4% compared to the same quarter last year. Research analysts forecast that MaxLinear, Inc will post 1.10 earnings per share for the current fiscal year.

Insider Buying and Selling

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

Institutional Trading of MaxLinear

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in MaxLinear during the second quarter worth approximately $1,754,062,000. Dimensional Fund Advisors LP raised its holdings in shares of MaxLinear by 7.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,689,692 shares of the semiconductor company's stock worth $29,376,000 after purchasing an additional 113,058 shares during the period. The Manufacturers Life Insurance Company purchased a new position in shares of MaxLinear in the 2nd quarter worth about $165,221,000. AIGH Capital Management LLC acquired a new position in shares of MaxLinear in the 2nd quarter valued at about $104,729,000. Finally, Bank of America Corp DE grew its stake in MaxLinear by 6.9% during the first quarter. Bank of America Corp DE now owns 641,034 shares of the semiconductor company's stock worth $11,148,000 after buying an additional 41,119 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 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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