MaxLinear (NASDAQ:MXL) Trading Down 8.6% – Here’s What Happened

MaxLinear, Inc (NASDAQ:MXL)’s share price was down 8.6% during mid-day trading on Tuesday . The stock traded as low as $72.49 and last traded at $72.4560. Approximately 1,854,824 shares changed hands during trading, a decline of 38% from the average daily volume of 2,971,709 shares. The stock had previously closed at $79.27.

Analyst Ratings Changes

Several research firms have commented on MXL. Roth Mkm raised shares of MaxLinear from a “neutral” rating to a “buy” rating and set a $60.00 target price for the company in a research note on Friday, April 24th. Benchmark began coverage on MaxLinear in a research note on Wednesday, May 27th. They set a “buy” rating and a $125.00 price target on the stock. Susquehanna restated a “neutral” rating and set a $30.00 price objective on shares of MaxLinear in a report on Monday, April 20th. Needham & Company LLC raised MaxLinear from a “hold” rating to a “buy” rating and set a $60.00 price objective for the company in a research report on Friday, April 24th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of MaxLinear in a research report on Tuesday, April 21st. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $65.00.

MaxLinear Stock Down 9.9%

The stock has a fifty day moving average price of $60.90 and a 200-day moving average price of $32.91. The firm has a market cap of $6.40 billion, a PE ratio of -47.05 and a beta of 3.98. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.12 and a current ratio of 1.70.

MaxLinear (NASDAQ:MXL) last released its earnings results on Thursday, April 23rd. The semiconductor company reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.04. The company had revenue of $137.19 million during the quarter, compared to the consensus estimate of $137.15 million. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. The company’s revenue was up 43.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.05) EPS. Research analysts expect that MaxLinear, Inc will post 0.52 EPS for the current year.

Insider Activity

In related news, insider Connie H. Kwong sold 35,000 shares of the business’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $96.96, for a total value of $3,393,600.00. Following the completion of the sale, the insider directly owned 13,947 shares of the company’s stock, valued at $1,352,301.12. The trade was a 71.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Thomas E. Pardun sold 11,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $105.00, for a total value of $1,155,000.00. Following the transaction, the director directly owned 55,252 shares in the company, valued at approximately $5,801,460. This represents a 16.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 65,168 shares of company stock valued at $5,559,359. 7.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On MaxLinear

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Larson Financial Group LLC grew its stake in MaxLinear by 161.7% during the 4th quarter. Larson Financial Group LLC now owns 1,416 shares of the semiconductor company’s stock worth $25,000 after buying an additional 875 shares during the last quarter. Smartleaf Asset Management LLC increased its holdings in shares of MaxLinear by 103.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 726 shares during the period. Northwestern Mutual Wealth Management Co. acquired a new stake in MaxLinear in the fourth quarter worth about $25,000. International Assets Investment Management LLC bought a new stake in MaxLinear during the fourth quarter worth approximately $27,000. Finally, EverSource Wealth Advisors LLC lifted its position in MaxLinear by 16.1% in the first quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company’s stock worth $27,000 after purchasing an additional 217 shares during the period. 90.79% of the stock is currently owned by institutional investors and hedge funds.

About MaxLinear

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.