MaxLinear (NASDAQ:MXL) Stock Jumps 13.6% - Should You Buy?

Key Points

• MaxLinear shares jumped 13.6% in Monday mid-day trading to about $55.88, while trading volume was 77% below its average.
• Analysts’ consensus rating is “Moderate Buy,” with a $94.30 average price target; recent recommendations included several upgrades and higher targets, alongside a Wells Fargo downgrade in its target and an equal-weight rating.
• Quarterly results beat estimates: EPS was $0.62 versus $0.56 expected, and revenue reached $218.06 million, up 72.4% year over year. The CEO also sold 351,454 shares in August.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) was up 13.6% during mid-day trading on Monday. The company traded as high as $55.30 and last traded at $55.8780. 730,976 shares changed hands during trading, a decline of 77% from the average daily volume of 3,172,709 shares. The stock had previously closed at $49.18.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Wall Street Zen upgraded MaxLinear from a "hold" rating to a "buy" rating in a report on Sunday, July 26th. Stifel Nicolaus increased their price objective on MaxLinear from $110.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Needham & Company LLC raised their target price on MaxLinear from $60.00 to $100.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Morgan Stanley set a $125.00 target price on MaxLinear in a research report on Monday, September 14th. Finally, Wells Fargo & Company decreased their price target on MaxLinear from $95.00 to $78.00 and set an "equal weight" rating on the stock in a research note on Tuesday, October 20th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $94.30.

MaxLinear Trading Up 11.7%

The company has a market cap of $5.00 billion, a PE ratio of -149.07 and a beta of 3.97. The company's 50 day simple moving average is $76.26 and its two-hundred day simple moving average is $60.27. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.22 and a quick ratio of 1.57.

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 (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.06. The business had revenue of $218.06 million for the quarter, compared to the consensus estimate of $214.95 million. MaxLinear had a negative net margin of 4.45% and a positive return on equity of 12.89%. The business's revenue was up 72.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.14 EPS. As a group, sell-side analysts anticipate that MaxLinear, Inc will post 1.10 EPS for the current fiscal year.

Insider Transactions at MaxLinear

In other MaxLinear news, CEO Kishore Seendripu sold 351,454 shares of the company'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 can be accessed through the SEC website. 7.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On MaxLinear

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

MaxLinear Company Profile

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.

Founded in 2003, MaxLinear is headquartered in Carlsbad, California.

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