MaxLinear (NASDAQ:MXL) Shares Up 6.1% - Still a Buy?

Key Points

• MaxLinear shares rose 6.1% to about $70.59, though trading volume was 72% below the stock’s average daily volume.
• Analyst views remain mixed: five rate the stock a Buy, four a Hold, and one a Sell. The consensus rating is Hold, with an average price target of $85, while individual targets range from $75 to $125.
• MaxLinear exceeded quarterly expectations, reporting $0.35 EPS and $168.85 million in revenue, with revenue up 55.2% year over year. However, the company posted a negative net margin, and its CEO recently sold shares worth about $30.2 million.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) shares traded up 6.1% during trading on Wednesday . The stock traded as high as $70.31 and last traded at $70.5860. Approximately 860,805 shares were traded during trading, a decline of 72% from the average daily volume of 3,095,211 shares. The stock had previously closed at $66.50.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Wells Fargo & Company boosted their price target on MaxLinear from $42.00 to $75.00 and gave the company an "equal weight" rating in a research note on Monday, July 20th. Stifel Nicolaus lifted 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 research note on Sunday, July 26th. Benchmark initiated coverage on shares of MaxLinear in a report on Wednesday, May 27th. They issued a "buy" rating and a $125.00 price target for the company. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MaxLinear in a research note on Friday, July 17th. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, MaxLinear currently has a consensus rating of "Hold" and an average target price 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 company has a fifty day moving average price of $74.47 and a 200 day moving average price of $60.97. The stock has a market cap of $6.36 billion, a P/E ratio of -58.64 and a beta of 3.93.

MaxLinear (NASDAQ:MXL - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate 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 business had revenue of $168.85 million during the quarter, compared to the consensus estimate of $164.64 million. During the same quarter last year, the firm posted $0.02 EPS. MaxLinear's revenue was up 55.2% compared to the same quarter last year. On average, equities analysts expect that MaxLinear, Inc will post 0.78 EPS for the current year.

Insider Buying and Selling at MaxLinear

In related news, CEO Kishore Seendripu sold 351,454 shares of the company's stock in a transaction dated 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 document filed with the SEC, which is available at this link. 7.70% of the stock is owned by corporate insiders.

Institutional Trading of MaxLinear

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC lifted its holdings in shares of MaxLinear by 16.1% in the first quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company's stock valued at $27,000 after purchasing an additional 217 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in MaxLinear by 16.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the semiconductor company's stock valued at $215,000 after buying an additional 232 shares during the last quarter. Ameritas Advisory Services LLC purchased a new stake in MaxLinear in the 2nd quarter valued at $32,000. GAMMA Investing LLC lifted its stake in MaxLinear by 5.6% during the 2nd quarter. GAMMA Investing LLC now owns 6,152 shares of the semiconductor company's stock valued at $788,000 after acquiring an additional 326 shares in the last quarter. Finally, Carolina Wealth Advisors LLC bought a new position in MaxLinear during the 2nd quarter valued at $47,000. 90.79% of the stock is owned by institutional investors.

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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