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

Shares of MaxLinear, Inc (NASDAQ:MXL) gapped down before the market opened on Thursday . The stock had previously closed at $88.84, but opened at $82.94. MaxLinear shares last traded at $83.7540, with a volume of 522,089 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on MXL shares. Benchmark initiated coverage on shares of MaxLinear in a research note on Wednesday, May 27th. They issued a “buy” rating and a $125.00 price target on the stock. Needham & Company LLC raised shares of 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. Stifel Nicolaus lifted their target price on shares of MaxLinear from $105.00 to $110.00 and gave the company a “buy” rating in a report on Monday, June 29th. Susquehanna reissued a “neutral” rating and issued a $30.00 target price on shares of MaxLinear in a research report on Monday, April 20th. Finally, Roth Capital upgraded MaxLinear from a “neutral” rating to a “buy” rating and set a $60.00 price target on the stock in a research note on Friday, April 24th. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $65.50.

MaxLinear Stock Down 3.4%

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 has a market cap of $6.43 billion, a price-to-earnings ratio of -47.26 and a beta of 3.91. The firm’s fifty day simple moving average is $91.21 and its 200 day simple moving average is $47.63.

MaxLinear (NASDAQ:MXL) last announced its quarterly earnings data on Thursday, April 23rd. The semiconductor company reported $0.22 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.04. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. The company had revenue of $137.19 million for the quarter, compared to the consensus estimate of $137.15 million. During the same period in the prior year, the firm posted ($0.05) EPS. The company’s quarterly revenue was up 43.0% compared to the same quarter last year. Sell-side analysts predict that MaxLinear, Inc will post 0.52 earnings per share for the current year.

Insider Buying and Selling at MaxLinear

In other news, insider Connie H. Kwong sold 35,000 shares of the company’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $96.96, for a total transaction of $3,393,600.00. Following the completion of the transaction, the insider directly owned 13,947 shares of the company’s stock, valued at approximately $1,352,301.12. This represents a 71.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Thomas E. Pardun sold 11,000 shares of the company’s stock in a transaction dated 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 of the company’s stock, valued at approximately $5,801,460. This represents a 16.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 65,168 shares of company stock worth $5,559,358 in the last three months. 7.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On MaxLinear

Several institutional investors have recently added to or reduced their stakes in MXL. Larson Financial Group LLC increased its stake in MaxLinear by 161.7% in the fourth quarter. Larson Financial Group LLC now owns 1,416 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 875 shares during the last quarter. Smartleaf Asset Management LLC raised its holdings in MaxLinear by 103.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 726 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of MaxLinear during the 4th quarter worth approximately $25,000. International Assets Investment Management LLC acquired a new position in shares of MaxLinear in the 4th quarter valued at $27,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of MaxLinear by 16.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 217 shares in the last quarter. Hedge funds and other 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.