MaxLinear (NASDAQ:MXL) Stock Falls 8% - Here's What Happened

Key Points

• MaxLinear shares fell 8% Friday to about $54.26, while trading volume was 93% below its average.
• Analyst views were mixed: the stock carries a “Moderate Buy” consensus and an average price target of $94.30, with recent target changes ranging from $78 to $100.
• In its latest reported quarter, MaxLinear beat earnings and revenue estimates, with revenue up 72.4% year over year.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report)'s share price dropped 8% on Friday. The company traded as low as $54.59 and last traded at $54.2570. 234,726 shares traded hands during mid-day trading, a decline of 93% from the average session volume of 3,157,524 shares. The stock had previously closed at $58.96.

Analysts Set New Price Targets

Several brokerages have weighed in on MXL. Roth Capital boosted their price objective on MaxLinear from $60.00 to $100.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Wells Fargo & Company lowered their price objective 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. Zacks Research upgraded MaxLinear from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 28th. Needham & Company LLC lifted their target price on MaxLinear from $60.00 to $100.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Finally, Susquehanna set a $70.00 target price on MaxLinear in a research report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, MaxLinear currently has an average rating of "Moderate Buy" and an average price target of $94.30.

MaxLinear Stock Down 9.2%

The company's 50 day moving average is $76.05 and its 200 day moving average is $61.03. The company has a market cap of $4.87 billion, a PE ratio of -144.68 and a beta of 3.97. The company has a current ratio of 2.22, a quick ratio of 1.57 and a debt-to-equity ratio of 0.31.

MaxLinear (NASDAQ:MXL - Get Free Report) last issued its earnings results on Thursday, October 22nd. The semiconductor company reported $0.62 EPS for the quarter, topping analysts' consensus estimates of $0.56 by $0.06. MaxLinear had a negative net margin of 4.45% and a positive return on equity of 12.89%. The business had revenue of $218.06 million for the quarter, compared to the consensus estimate of $214.95 million. During the same period in the prior year, the firm earned $0.14 EPS. The company's revenue for the quarter was up 72.4% compared to the same quarter last year. As a group, analysts predict that MaxLinear, Inc will post 1.10 earnings per share for the current fiscal year.

Insider Transactions at MaxLinear

In other MaxLinear 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 filing with the SEC, which can be accessed through this hyperlink. 7.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On MaxLinear

Hedge funds and other institutional investors have recently made changes to their positions in the company. Ameritas Advisory Services LLC bought a new stake in shares of MaxLinear in the second quarter valued at about $32,000. Carolina Wealth Advisors LLC bought a new stake in shares of MaxLinear in the 2nd quarter valued at about $47,000. Global Retirement Partners LLC bought a new stake in shares of MaxLinear in the 2nd quarter valued at about $56,000. Reyes Financial Architecture Inc. purchased a new stake in shares of MaxLinear in the 3rd quarter worth approximately $44,000. Finally, NFSG Corp lifted its position in shares of MaxLinear by 284.0% in the 3rd quarter. NFSG Corp now owns 960 shares of the semiconductor company's stock worth $87,000 after purchasing an additional 710 shares during the period. Institutional investors own 90.79% of the company's stock.

About MaxLinear

MaxLinear, Inc. is a fabless semiconductor company that designs radio-frequency, analog and mixed-signal components, as well as system-on-chip products. Its technologies are used to move and process data in broadband, wireless, wired-networking and infrastructure applications. The company's products support equipment such as broadband access devices, Wi-Fi systems, Ethernet and optical networking equipment, and wireless infrastructure. MaxLinear sells to customers around the world, including communications equipment manufacturers and other technology companies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.