MaxLinear (NASDAQ:MXL) Shares Gap Down – Time to Sell?

MaxLinear, Inc (NASDAQ:MXL) shares gapped down prior to trading on Monday . The stock had previously closed at $66.82, but opened at $62.22. MaxLinear shares last traded at $63.94, with a volume of 420,467 shares traded.

Wall Street Analyst Weigh In

MXL has been the topic of several recent analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a research note on Friday, July 17th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $40.00 price objective on shares of MaxLinear in a research note on Friday, April 24th. Susquehanna increased their target price on MaxLinear from $45.00 to $80.00 and gave the company a “neutral” rating in a research report on Friday, July 24th. Benchmark initiated coverage on shares of MaxLinear in a research report on Wednesday, May 27th. They issued a “buy” rating and a $125.00 price objective on the stock. Finally, Wall Street Zen raised MaxLinear from a “hold” rating to a “buy” rating in a research report on Sunday, July 26th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $85.00.

MaxLinear Stock Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.78 and a quick ratio of 1.15. The stock has a market capitalization of $6.22 billion, a price-to-earnings ratio of -57.81 and a beta of 3.96. The firm has a fifty day moving average of $86.90 and a 200 day moving average of $51.66.

MaxLinear (NASDAQ:MXL) last posted its earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.02. The firm had revenue of $168.85 million during the quarter, compared to analysts’ expectations of $164.64 million. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. The business’s revenue was up 55.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.02 EPS. On average, sell-side analysts anticipate that MaxLinear, Inc will post 0.78 earnings per share for the current fiscal year.

Insider Activity at MaxLinear

In other news, 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 transaction of $1,155,000.00. Following the transaction, the director owned 55,252 shares in the company, valued at $5,801,460. This trade represents a 16.60% decrease in their position. The sale was disclosed in a filing 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 transaction of $3,393,600.00. Following the transaction, the insider owned 13,947 shares of the company’s stock, valued at $1,352,301.12. This represents a 71.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 7.70% of the company’s stock.

Hedge Funds Weigh In On MaxLinear

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its position in MaxLinear by 4.8% during the fourth quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company’s stock worth $232,279,000 after buying an additional 605,903 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position in shares of MaxLinear by 27.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company’s stock worth $41,054,000 after purchasing an additional 628,719 shares during the period. Invesco Ltd. grew its stake in shares of MaxLinear by 419.9% in the fourth quarter. Invesco Ltd. now owns 2,149,589 shares of the semiconductor company’s stock valued at $37,467,000 after buying an additional 1,736,141 shares in the last quarter. Geode Capital Management LLC grew its position in MaxLinear by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 2,038,144 shares of the semiconductor company’s stock valued at $35,531,000 after acquiring an additional 28,548 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in MaxLinear by 31.8% during the 3rd quarter. Marshall Wace LLP now owns 1,826,259 shares of the semiconductor company’s stock worth $29,366,000 after buying an additional 441,088 shares during the period. 90.79% of the stock is owned by hedge funds and other institutional investors.

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.