MaxLinear (NASDAQ:MXL) Shares Gap Up - Still a Buy?

Key Points

• MaxLinear shares jumped at the open, rising from a prior close of $62.78 to $66.62, though they remained below the 50-day moving average of $81.65.
• Analyst sentiment is mixed: five analysts rate the stock a Buy, four say Hold, and one says Sell. The consensus rating is Hold, with an $85 price target, while individual targets range from $75 to $125.
• MaxLinear exceeded quarterly expectations, reporting $0.35 in EPS and $168.85 million in revenue, up 55.2% year over year. However, the company posted an 18.24% negative net margin, and its CEO recently sold shares worth approximately $30.2 million.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $62.78, but opened at $66.62. MaxLinear shares last traded at $65.6270, with a volume of 339,553 shares.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Northland Securities set a $110.00 price objective on MaxLinear in a report on Wednesday, June 3rd. Loop Capital raised shares of MaxLinear from a "hold" rating to a "buy" rating and raised their target price for the company from $17.00 to $75.00 in a report on Wednesday, April 29th. Weiss Ratings restated a "sell (d-)" rating on shares of MaxLinear in a research report on Friday, July 17th. Wall Street Zen upgraded shares of MaxLinear from a "hold" rating to a "buy" rating in a research report on Sunday, July 26th. Finally, Benchmark began coverage on shares of MaxLinear in a research note on Wednesday, May 27th. They issued a "buy" rating and a $125.00 price objective on the stock. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $85.00.

MaxLinear Stock Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.78 and a quick ratio of 1.15. The stock has a 50-day simple moving average of $81.65 and a 200-day simple moving average of $57.61. The stock has a market cap of $5.95 billion, a P/E ratio of -55.18 and a beta of 3.96.

MaxLinear (NASDAQ:MXL - Get Free Report) last posted its earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. The firm had revenue of $168.85 million during the quarter, compared to analysts' expectations of $164.64 million. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. The business's revenue for the quarter was up 55.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.02 earnings per share. Research analysts forecast that MaxLinear, Inc will post 0.78 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On MaxLinear

Hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in MaxLinear in the 2nd quarter worth about $1,754,062,000. Vanguard Group Inc. raised its position in MaxLinear by 4.8% in the fourth quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company's stock valued at $232,279,000 after purchasing an additional 605,903 shares during the last quarter. California State Teachers Retirement System boosted its stake in shares of MaxLinear by 12,029.5% during the second quarter. California State Teachers Retirement System now owns 12,619,533 shares of the semiconductor company's stock valued at $1,615,679,000 after purchasing an additional 12,515,493 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in shares of MaxLinear by 27.8% during the second quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company's stock valued at $41,054,000 after purchasing an additional 628,719 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in shares of MaxLinear by 419.9% during the fourth quarter. Invesco Ltd. now owns 2,149,589 shares of the semiconductor company's stock worth $37,467,000 after purchasing an additional 1,736,141 shares during the last quarter. Institutional investors and hedge funds own 90.79% of the company's stock.

MaxLinear Company Profile

MaxLinear, Inc is a provider of radio-frequency (RF), analog, and mixed-signal integrated circuits for broadband communications, data center connectivity, and video infrastructure applications. The company's product portfolio includes high-performance RF front-end modules, broadband power amplifiers, optical and Ethernet transceivers, and network processors designed to support demanding signal processing requirements.

MaxLinear's semiconductor solutions are used by cable and satellite television operators, fiber-to-the-home service providers, network equipment manufacturers, and data center operators.

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