MaxLinear (NASDAQ:MXL) Shares Gap Down – Here’s Why

MaxLinear, Inc (NASDAQ:MXL)’s share price gapped down before the market opened on Tuesday. The stock had previously closed at $88.99, but opened at $84.75. MaxLinear shares last traded at $86.70, with a volume of 495,126 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on MXL shares. Needham & Company LLC upped their target price on MaxLinear from $60.00 to $100.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Wall Street Zen raised MaxLinear from a “hold” rating to a “buy” rating in a research report on Sunday, July 26th. Roth Capital raised their price target on MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Susquehanna boosted their price target on MaxLinear from $45.00 to $80.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Finally, Stifel Nicolaus upped their price objective on MaxLinear from $110.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $88.64.

MaxLinear Price Performance

The company has a 50 day moving average of $76.85 and a 200 day moving average of $72.72. The stock has a market capitalization of $7.83 billion, a price-to-earnings ratio of -72.13 and a beta of 3.93. The company has a quick ratio of 1.15, a current ratio of 1.78 and a debt-to-equity ratio of 0.26.

MaxLinear (NASDAQ:MXL) last issued its quarterly earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. The firm had revenue of $168.85 million for the quarter, compared to analyst estimates of $164.64 million. MaxLinear had a positive return on equity of 2.24% and a negative net margin of 18.24%. The firm’s quarterly revenue was up 55.2% on a year-over-year basis. During the same period last year, the company earned $0.02 EPS. As a group, equities research analysts forecast that MaxLinear, Inc will post 0.78 EPS for the current fiscal year.

Insider Buying and Selling at MaxLinear

In other news, CEO Kishore Seendripu sold 351,454 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $85.95, for a total transaction of $30,207,471.30. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 7.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MaxLinear

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in MaxLinear during the second quarter worth approximately $1,754,062,000. Dimensional Fund Advisors LP increased its position in shares of MaxLinear by 7.2% in the first quarter. Dimensional Fund Advisors LP now owns 1,689,692 shares of the semiconductor company’s stock worth $29,376,000 after acquiring an additional 113,058 shares in the last quarter. The Manufacturers Life Insurance Company purchased a new position in shares of MaxLinear in the 2nd quarter valued at $165,221,000. AIGH Capital Management LLC purchased a new position in shares of MaxLinear in the 2nd quarter valued at $104,729,000. Finally, Bank of America Corp DE lifted its holdings in shares of MaxLinear by 6.9% during the 1st quarter. Bank of America Corp DE now owns 641,034 shares of the semiconductor company’s stock valued at $11,148,000 after acquiring an additional 41,119 shares in the last quarter. Institutional investors and hedge funds own 90.79% of the company’s stock.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that develops high-performance analog and mixed-signal integrated circuits for communications and connectivity applications. Its products are designed to help equipment manufacturers process, transmit and manage data across broadband, wired and wireless infrastructure, data center, and industrial systems.

The company’s product portfolio includes broadband access and connectivity solutions, RF and microwave components, Ethernet and high-speed interconnect products, optical networking technologies, and power-management devices.