MaxLinear (NASDAQ:MXL) Shares Gap Up - Should You Buy?

Key Points

• MaxLinear shares jumped: The stock opened at $49.29, up from its prior close of $44.31, and was last trading at $47.69.
• Quarterly results beat expectations: MaxLinear reported earnings of $0.62 per share versus $0.56 expected, while revenue rose 72.4% year over year to $218.06 million.
• Analyst sentiment is moderately positive: The consensus rating is “Moderate Buy,” with an average price target of $94.30; however, the article also notes that the CEO sold 351,454 shares in August.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s share price gapped up before the market opened on Friday. The stock had previously closed at $44.31, but opened at $49.29. MaxLinear shares last traded at $47.6890, with a volume of 546,660 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on MXL shares. Susquehanna set a $70.00 target price on MaxLinear in a research note on Friday, October 23rd. Morgan Stanley set a $125.00 target price on MaxLinear in a research report on Monday, September 14th. Stifel Nicolaus upped their price objective 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. Wall Street Zen raised shares of MaxLinear from a "hold" rating to a "buy" rating in a report on Sunday, July 26th. Finally, Wells Fargo & Company reduced their target price on shares of MaxLinear from $95.00 to $78.00 and set an "equal weight" rating for the company in a research note on Tuesday, October 20th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $94.30.

MaxLinear Stock Up 7.2%

The firm's fifty day simple moving average is $76.55 and its 200-day simple moving average is $60.12. The company has a market cap of $4.32 billion, a PE ratio of -128.68 and a beta of 3.97. The company has a quick ratio of 1.57, a current ratio of 2.22 and a debt-to-equity ratio of 0.31.

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 company had revenue of $218.06 million during the quarter, compared to analysts' expectations of $214.95 million. During the same period in the previous year, the firm posted $0.14 earnings per share. The business's revenue for the quarter was up 72.4% compared to the same quarter last year. As a group, equities research analysts expect that MaxLinear, Inc will post 1.10 earnings per share for the current fiscal year.

Insider Buying and Selling at MaxLinear

In other news, CEO Kishore Seendripu sold 351,454 shares of the firm's 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 transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 7.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On MaxLinear

Several institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC grew its stake in MaxLinear by 16.1% during the first quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company's stock worth $27,000 after buying an additional 217 shares during the period. Ameritas Advisory Services LLC purchased a new position in MaxLinear in the second quarter valued at about $32,000. KBC Group NV acquired a new stake in shares of MaxLinear during the first quarter worth approximately $35,000. Reyes Financial Architecture Inc. bought a new stake in shares of MaxLinear in the 3rd quarter worth about $44,000. Finally, Carolina Wealth Advisors LLC acquired a new stake in MaxLinear during the second quarter valued at approximately $47,000. Institutional investors and hedge funds own 90.79% of the company's stock.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that 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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