MaxLinear (NASDAQ:MXL) Stock Falls 6.9% - Should You Sell?

Key Points

• MaxLinear shares fell 6.9% to about $87.38 in low-volume trading, although the stock remains well above its 50-day and 200-day moving averages.
• The company exceeded quarterly expectations, reporting $0.35 in EPS and $168.85 million in revenue, with revenue up 55.2% year over year.
• Analyst sentiment is mixed: the consensus rating is “Hold” with an $88.64 target, while the CEO recently sold about $30.2 million worth of shares.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s stock price traded down 6.9% during mid-day trading on Monday. The company traded as low as $88.80 and last traded at $87.3770. 389,368 shares traded hands during trading, a decline of 87% from the average daily volume of 3,101,439 shares. The stock had previously closed at $93.84.

Analyst Upgrades and Downgrades

MXL has been the subject of a number of recent research reports. Stifel Nicolaus increased their price objective on shares of MaxLinear from $110.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Northland Securities set a $110.00 target price on MaxLinear in a report on Wednesday, June 3rd. Wells Fargo & Company increased their price target on MaxLinear from $42.00 to $75.00 and gave the company an "equal weight" rating in a research report on Monday, July 20th. Susquehanna raised their price target on MaxLinear from $45.00 to $80.00 and gave the company a "neutral" rating in a research note on Friday, July 24th. Finally, Wall Street Zen raised MaxLinear from a "hold" rating to a "buy" rating in a report on Sunday, July 26th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $88.64.

MaxLinear Stock Performance

The stock has a market cap of $8.19 billion, a P/E ratio of -75.69 and a beta of 3.93. 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 $71.26 and a 200-day simple moving average of $66.48.

MaxLinear (NASDAQ:MXL - Get Free Report) last issued its earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 earnings per share for the quarter, beating 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 firm had revenue of $168.85 million for the quarter, compared to analyst estimates of $164.64 million. During the same quarter last year, the business posted $0.02 earnings per share. The company's quarterly revenue was up 55.2% on a year-over-year basis. Research analysts forecast that MaxLinear, Inc will post 0.78 earnings per share for the current year.

Insiders Place Their Bets

In related 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 value of $30,207,471.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 7.70% of the stock is owned by insiders.

Hedge Funds Weigh In On MaxLinear

Several hedge funds and other institutional investors have recently bought and sold shares of the company. QRG Capital Management Inc. bought a new stake in shares of MaxLinear in the 2nd quarter valued at $205,000. Revere Asset Management Inc purchased a new position in MaxLinear in the second quarter worth $1,139,000. Sequoia Financial Advisors LLC purchased a new position in MaxLinear in the second quarter valued at about $230,000. Tidal Investments LLC raised its stake in shares of MaxLinear by 23.4% in the second quarter. Tidal Investments LLC now owns 56,467 shares of the semiconductor company's stock valued at $7,229,000 after buying an additional 10,700 shares during the period. Finally, Integrated Wealth Concepts LLC purchased a new stake in shares of MaxLinear during the 2nd quarter valued at approximately $322,000. Institutional investors and hedge funds own 90.79% of the company's stock.

About MaxLinear

MaxLinear, Inc is a fabless semiconductor company that designs and develops high-performance analog and mixed-signal integrated circuits. Its products are used in broadband communications, wired and wireless infrastructure, data center, networking, and industrial applications.

The company's portfolio includes solutions for broadband access and connectivity, including cable and fiber-optic infrastructure, Ethernet and high-speed interconnects, optical communications, power management, interface products, and embedded processors.

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