MaxLinear (NASDAQ:MXL) Stock Price Down 5.9% – Time to Sell?

MaxLinear, Inc (NASDAQ:MXL)’s share price was down 5.9% during mid-day trading on Wednesday . The stock traded as low as $18.30 and last traded at $18.41. Approximately 196,473 shares traded hands during trading, a decline of 75% from the average daily volume of 776,101 shares. The stock had previously closed at $19.57.

Analysts Set New Price Targets

A number of brokerages recently issued reports on MXL. Weiss Ratings reiterated a “sell (d-)” rating on shares of MaxLinear in a research report on Wednesday, October 8th. Wall Street Zen upgraded shares of MaxLinear from a “hold” rating to a “buy” rating in a research note on Saturday, September 20th. Benchmark restated a “buy” rating and set a $25.00 price target on shares of MaxLinear in a research report on Friday, October 24th. Williams Trading set a $25.00 price target on MaxLinear in a report on Friday, October 24th. Finally, Zacks Research downgraded MaxLinear from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 22nd. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, MaxLinear has an average rating of “Hold” and an average price target of $18.86.

MaxLinear Stock Performance

The company has a current ratio of 1.55, a quick ratio of 1.08 and a debt-to-equity ratio of 0.27. The stock has a 50 day moving average price of $16.52 and a two-hundred day moving average price of $16.01. The company has a market cap of $1.62 billion, a price-to-earnings ratio of -8.89 and a beta of 1.77.

MaxLinear (NASDAQ:MXL) last released its earnings results on Thursday, October 23rd. The semiconductor company reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.02. MaxLinear had a negative return on equity of 12.74% and a negative net margin of 42.43%.The firm had revenue of $126.46 million for the quarter, compared to analyst estimates of $124.66 million. During the same quarter in the prior year, the firm posted ($0.36) earnings per share. The company’s quarterly revenue was up 56.0% on a year-over-year basis. 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 permits the company to repurchase $75.00 million in outstanding shares. This repurchase authorization permits the semiconductor company to purchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at MaxLinear

In other MaxLinear news, Director Daniel A. Artusi sold 20,747 shares of the company’s stock in a transaction that occurred on Thursday, October 30th. The shares were sold at an average price of $15.39, for a total value of $319,296.33. Following the completion of the sale, the director owned 12,141 shares of the company’s stock, valued at approximately $186,849.99. This represents a 63.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 7.80% of the company’s stock.

Hedge Funds Weigh In On MaxLinear

Several institutional investors and hedge funds have recently made changes to their positions in the company. EverSource Wealth Advisors LLC increased its position in shares of MaxLinear by 97.0% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 2,110 shares of the semiconductor company’s stock valued at $34,000 after buying an additional 1,039 shares in the last quarter. Quarry LP lifted its holdings in shares of MaxLinear by 1,293.0% during the 3rd quarter. Quarry LP now owns 2,187 shares of the semiconductor company’s stock valued at $35,000 after purchasing an additional 2,030 shares in the last quarter. Farther Finance Advisors LLC acquired a new position in shares of MaxLinear in the 2nd quarter valued at approximately $44,000. PNC Financial Services Group Inc. grew its position in shares of MaxLinear by 104.4% in the 2nd quarter. PNC Financial Services Group Inc. now owns 3,579 shares of the semiconductor company’s stock valued at $51,000 after purchasing an additional 1,828 shares during the period. Finally, Bessemer Group Inc. increased its stake in MaxLinear by 917.6% during the 3rd quarter. Bessemer Group Inc. now owns 3,175 shares of the semiconductor company’s stock worth $51,000 after purchasing an additional 2,863 shares in the last quarter. Institutional investors and hedge funds own 90.79% of the company’s stock.

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.