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

MaxLinear, Inc (NASDAQ:MXL)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $91.93, but opened at $100.23. MaxLinear shares last traded at $94.3130, with a volume of 1,215,790 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Susquehanna restated a “neutral” rating and set a $30.00 price target on shares of MaxLinear in a research note on Monday, April 20th. Needham & Company LLC upgraded shares of MaxLinear from a “hold” rating to a “buy” rating and set a $60.00 price objective on the stock in a research report on Friday, April 24th. Benchmark began coverage on shares of MaxLinear in a research report on Tuesday. They issued a “buy” rating and a $28.00 price objective on the stock. Northland Securities set a $55.00 price target on MaxLinear in a research note on Friday, April 24th. Finally, Wells Fargo & Company lifted their price target on MaxLinear from $18.00 to $20.00 and gave the company an “equal weight” rating in a research note on Friday, January 30th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, MaxLinear has a consensus rating of “Hold” and a consensus target price of $44.20.

MaxLinear Stock Performance

The stock has a 50-day simple moving average of $32.23 and a 200 day simple moving average of $22.55. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.70 and a quick ratio of 1.12. The company has a market capitalization of $8.27 billion, a PE ratio of -60.82 and a beta of 3.95.

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

Insiders Place Their Bets

In other news, insider Connie H. Kwong sold 35,000 shares of the business’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 completion of the transaction, the insider directly owned 13,947 shares of the company’s stock, valued at $1,352,301.12. The trade was a 71.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Steven G. Litchfield sold 20,000 shares of the business’s stock in a transaction on Friday, March 6th. The stock was sold at an average price of $15.68, for a total value of $313,600.00. Following the completion of the transaction, the insider directly owned 343,435 shares of the company’s stock, valued at approximately $5,385,060.80. This trade represents a 5.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 99,097 shares of company stock valued at $5,150,815. Insiders own 7.70% of the company’s stock.

Hedge Funds Weigh In On MaxLinear

A number of institutional investors have recently made changes to their positions in MXL. Invesco Ltd. raised its holdings 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 worth $37,467,000 after acquiring an additional 1,736,141 shares during the last quarter. AIGH Capital Management LLC acquired a new position in shares of MaxLinear in the third quarter worth $17,809,000. Paradigm Capital Management Inc. NY raised its holdings in shares of MaxLinear by 582.7% in the fourth quarter. Paradigm Capital Management Inc. NY now owns 861,000 shares of the semiconductor company’s stock worth $15,007,000 after acquiring an additional 734,875 shares during the last quarter. The Manufacturers Life Insurance Company raised its holdings in shares of MaxLinear by 27.8% in the second quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company’s stock worth $41,054,000 after acquiring an additional 628,719 shares during the last quarter. Finally, Defiance ETFs LLC acquired a new position in shares of MaxLinear in the fourth quarter worth $10,944,000. 90.79% of the stock is owned by institutional investors and hedge funds.

MaxLinear Company Profile

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.