Steven Litchfield Sells 4,929 Shares of MaxLinear (NASDAQ:MXL) Stock

Key Points

• Insider sale: Director Steven Litchfield sold 4,929 shares at an average of $16.81 for $82,856, reducing his stake by 1.34% to 363,435 shares.
• Stock and results: MXL fell about 4.1% to $15.72 (market cap ~$1.36B) after reporting a quarter that beat EPS and revenue estimates but still showed a -29.23% net margin and negative return on equity, with revenue up 48% year-over-year.
• Capital actions and outlook: The board authorized a $75 million buyback (up to ~5.8% of shares); analysts are mixed with an average rating of "Hold" and an average target of $19.57.

MaxLinear, Inc (NASDAQ:MXL - Get Free Report) insider Steven Litchfield sold 4,929 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $16.81, for a total value of $82,856.49. Following the sale, the insider owned 363,435 shares in the company, valued at approximately $6,109,342.35. The trade was a 1.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.

MaxLinear Stock Down 4.1%

NASDAQ:MXL traded down $0.67 during trading hours on Friday, hitting $15.72. The stock had a trading volume of 1,290,362 shares, compared to its average volume of 1,194,840. The company has a market cap of $1.36 billion, a PE ratio of -9.95 and a beta of 1.70. The business has a 50 day simple moving average of $18.40 and a two-hundred day simple moving average of $16.92. MaxLinear, Inc has a 1-year low of $8.35 and a 1-year high of $20.82. The company has a current ratio of 1.34, a quick ratio of 0.92 and a debt-to-equity ratio of 0.27.

MaxLinear (NASDAQ:MXL - Get Free Report) last announced its earnings results on Thursday, January 29th. The semiconductor company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.01. The business had revenue of $136.44 million during the quarter, compared to the consensus estimate of $134.82 million. MaxLinear had a negative net margin of 29.23% and a negative return on equity of 6.95%. The business's quarterly revenue was up 48.0% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.09) earnings per share. Analysts predict that MaxLinear, Inc will post -0.37 EPS for the current year.

MaxLinear announced that its Board of Directors has authorized a share repurchase plan on Monday, November 24th that allows the company to buyback $75.00 million in shares. This buyback authorization allows the semiconductor company to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of MaxLinear in a research note on Thursday, January 22nd. Benchmark upped their price target on shares of MaxLinear from $25.00 to $28.00 and gave the company a "buy" rating in a report on Friday, January 16th. Finally, Wells Fargo & Company increased their price objective on shares of MaxLinear from $18.00 to $20.00 and gave the company an "equal weight" rating in a research note on Friday, January 30th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $19.57.

Institutional Trading of MaxLinear

Institutional investors and hedge funds have recently modified their holdings of the business. Larson Financial Group LLC boosted its holdings in shares of MaxLinear by 161.7% in the 4th quarter. Larson Financial Group LLC now owns 1,416 shares of the semiconductor company's stock valued at $25,000 after buying an additional 875 shares during the period. Smartleaf Asset Management LLC lifted its holdings in MaxLinear by 103.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company's stock worth $25,000 after acquiring an additional 726 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in MaxLinear in the fourth quarter worth about $25,000. International Assets Investment Management LLC acquired a new position in MaxLinear in the fourth quarter valued at approximately $27,000. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of MaxLinear by 97.0% during the third quarter. EverSource Wealth Advisors LLC now owns 2,110 shares of the semiconductor company's stock valued at $34,000 after purchasing an additional 1,039 shares during the last quarter. 90.79% of the stock is owned by institutional investors and hedge funds.

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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