MaxLinear (NASDAQ:MXL) Shares Gap Up – Should You Buy?

MaxLinear, Inc (NASDAQ:MXL) gapped up prior to trading on Monday. The stock had previously closed at $71.32, but opened at $76.40. MaxLinear shares last traded at $76.2770, with a volume of 710,767 shares changing hands.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Morgan Stanley set a $125.00 target price on MaxLinear in a research report on Monday, September 14th. Susquehanna boosted their price target on MaxLinear from $45.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. Roth Capital boosted their price target on MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Needham & Company LLC upped 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. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a report on Thursday. Five investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $88.64.

MaxLinear Stock Up 9.7%

The firm has a fifty day simple moving average of $77.48 and a 200-day simple moving average of $74.48. The firm has a market cap of $7.10 billion, a price-to-earnings ratio of -65.77 and a beta of 3.93. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.15 and a current ratio of 1.78.

MaxLinear (NASDAQ:MXL) last released its quarterly earnings data on Thursday, July 23rd. The semiconductor company reported $0.35 EPS for the quarter, topping 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 during the quarter, compared to analysts’ expectations of $164.64 million. During the same period in the previous year, the business posted $0.02 earnings per share. The company’s revenue for the quarter was up 55.2% compared to the same quarter last year. As a group, sell-side analysts expect that MaxLinear, Inc will post 0.78 EPS for the current year.

Insider Activity

In related news, CEO Kishore Seendripu sold 351,454 shares of MaxLinear stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $85.95, for a total transaction of $30,207,471.30. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 7.70% of the company’s stock.

Institutional Inflows and Outflows

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

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.