MaxLinear (NASDAQ:MXL) Shares Gap Down – Should You Sell?

Shares of MaxLinear, Inc (NASDAQ:MXL) gapped down prior to trading on Wednesday . The stock had previously closed at $128.03, but opened at $119.34. MaxLinear shares last traded at $119.4810, with a volume of 895,748 shares changing hands.

Analysts Set New Price Targets

Several analysts have recently weighed in on MXL shares. Benchmark initiated coverage on shares of MaxLinear in a research report on Wednesday, May 27th. They set a “buy” rating and a $125.00 target price on the stock. Stifel Nicolaus increased their price target on shares of MaxLinear from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Monday. Needham & Company LLC raised MaxLinear from a “hold” rating to a “buy” rating and set a $60.00 price objective on the stock in a report on Friday, April 24th. Wall Street Zen lowered MaxLinear from a “buy” rating to a “hold” rating in a research note on Saturday, June 27th. Finally, Susquehanna reissued a “neutral” rating and issued a $30.00 target price on shares of MaxLinear in a report on Monday, April 20th. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $65.50.

MaxLinear Trading Down 17.1%

The firm has a market cap of $8.34 billion, a P/E ratio of -61.26 and a beta of 3.91. The company has a current ratio of 1.70, a quick ratio of 1.12 and a debt-to-equity ratio of 0.27. The company’s fifty day moving average price is $86.22 and its two-hundred day moving average price is $42.40.

MaxLinear (NASDAQ:MXL) last announced its quarterly earnings results on Thursday, April 23rd. The semiconductor company reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.04. The firm 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 firm’s quarterly revenue was up 43.0% on a year-over-year basis. During the same period last year, the firm posted ($0.05) EPS. As a group, sell-side analysts predict that MaxLinear, Inc will post 0.52 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Thomas E. Pardun sold 11,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $105.00, for a total value of $1,155,000.00. Following the completion of the transaction, the director owned 55,252 shares in the company, valued at $5,801,460. The trade was a 16.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Connie H. Kwong sold 35,000 shares of the company’s stock in a transaction on 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 transaction, the insider directly owned 13,947 shares in the company, valued at approximately $1,352,301.12. This represents a 71.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 65,168 shares of company stock valued at $5,559,358 in the last quarter. 7.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On MaxLinear

Institutional investors and hedge funds have recently made changes to their positions in the company. Pure Financial Advisors LLC acquired a new stake in MaxLinear during the 4th quarter worth $1,424,000. HighTower Advisors LLC boosted its position in shares of MaxLinear by 1.7% in the 4th quarter. HighTower Advisors LLC now owns 656,319 shares of the semiconductor company’s stock worth $11,440,000 after purchasing an additional 10,948 shares during the last quarter. Pictet Asset Management Holding SA acquired a new stake in shares of MaxLinear during the fourth quarter worth $190,000. Tudor Investment Corp ET AL grew its stake in shares of MaxLinear by 68.5% during the third quarter. Tudor Investment Corp ET AL now owns 427,195 shares of the semiconductor company’s stock worth $6,869,000 after purchasing an additional 173,709 shares during the period. Finally, Vanguard Group Inc. increased its holdings in MaxLinear by 4.8% in the fourth quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company’s stock valued at $232,279,000 after purchasing an additional 605,903 shares during the last quarter. Institutional investors 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.