MaxLinear (NASDAQ:MXL) Shares Gap Down – Here’s Why

MaxLinear, Inc (NASDAQ:MXL)’s stock price gapped down prior to trading on Tuesday. The stock had previously closed at $88.99, but opened at $84.75. MaxLinear shares last traded at $86.70, with a volume of 495,126 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts have commented on MXL shares. Wall Street Zen upgraded MaxLinear from a “hold” rating to a “buy” rating in a research note on Sunday, July 26th. Morgan Stanley set a $125.00 target price on MaxLinear in a research report on Monday, September 14th. Susquehanna increased their target price on MaxLinear from $45.00 to $80.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a research report on Friday, July 17th. Finally, Stifel Nicolaus upped their price target on MaxLinear from $110.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $88.64.

MaxLinear Stock Down 3.0%

The firm has a market capitalization of $7.83 billion, a PE ratio of -72.13 and a beta of 3.93. The firm’s 50 day moving average price is $76.85 and its two-hundred day moving average price is $72.72. The company has a quick ratio of 1.15, a current ratio of 1.78 and a debt-to-equity ratio of 0.26.

MaxLinear (NASDAQ:MXL) last released its quarterly 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. The business had revenue of $168.85 million during the quarter, compared to analyst estimates of $164.64 million. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. The business’s revenue was up 55.2% on a year-over-year basis. During the same period last year, the business earned $0.02 EPS. As a group, research analysts forecast that MaxLinear, Inc will post 0.78 EPS for the current fiscal year.

Insider Buying and Selling

In other MaxLinear news, CEO Kishore Seendripu sold 351,454 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $85.95, for a total value of $30,207,471.30. The sale 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

Large investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in shares of MaxLinear in the second quarter worth about $1,754,062,000. The Manufacturers Life Insurance Company purchased a new position in MaxLinear in the second quarter valued at about $165,221,000. AIGH Capital Management LLC acquired a new stake in MaxLinear during the 2nd quarter valued at approximately $104,729,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in MaxLinear during the 2nd quarter valued at approximately $81,056,000. Finally, Bank of New York Mellon Corp acquired a new stake in MaxLinear during the 2nd quarter valued at approximately $65,213,000. 90.79% of the stock is currently owned by institutional investors and hedge funds.

About MaxLinear

MaxLinear, Inc is a fabless semiconductor company that develops high-performance analog and mixed-signal integrated circuits for communications and connectivity applications. Its products are designed to help equipment manufacturers process, transmit and manage data across broadband, wired and wireless infrastructure, data center, and industrial systems.

The company’s product portfolio includes broadband access and connectivity solutions, RF and microwave components, Ethernet and high-speed interconnect products, optical networking technologies, and power-management devices.