MaxLinear (NASDAQ:MXL) Trading Down 8.6% – Should You Sell?

MaxLinear, Inc (NASDAQ:MXL) fell 8.6% during mid-day trading on Tuesday . The stock traded as low as $72.49 and last traded at $72.4560. 1,854,824 shares changed hands during trading, a decline of 38% from the average session volume of 2,971,709 shares. The stock had previously closed at $79.27.

Analyst Upgrades and Downgrades

A number of research firms recently commented on MXL. Susquehanna reiterated a “neutral” rating and set a $30.00 price objective on shares of MaxLinear in a research note on Monday, April 20th. Stifel Nicolaus reaffirmed a “buy” rating and issued a $105.00 target price (up from $49.00) on shares of MaxLinear in a research report on Wednesday, June 3rd. Roth Mkm raised shares of MaxLinear from a “neutral” rating to a “buy” rating and set a $60.00 price target for the company in a research report on Friday, April 24th. Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a research note on Tuesday, April 21st. Finally, Loop Capital raised MaxLinear from a “hold” rating to a “buy” rating and raised their price objective for the company from $17.00 to $75.00 in a research note on Wednesday, April 29th. 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’s stock. According to data from MarketBeat, MaxLinear presently has a consensus rating of “Hold” and an average price target of $65.00.

MaxLinear Stock Up 12.7%

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 $7.26 billion, a price-to-earnings ratio of -53.35 and a beta of 3.98. The firm’s fifty day moving average price is $63.13 and its 200-day moving average price is $33.74.

MaxLinear (NASDAQ:MXL) last issued its quarterly earnings data 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 business had revenue of $137.19 million for the quarter, compared to analyst estimates 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 business posted ($0.05) earnings per share. Sell-side analysts predict that MaxLinear, Inc will post 0.52 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Connie H. Kwong sold 35,000 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $96.96, for a total transaction of $3,393,600.00. Following the completion of the sale, the insider directly owned 13,947 shares in the company, valued at $1,352,301.12. This represents a 71.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Thomas E. Pardun sold 11,000 shares of the company’s stock in a transaction dated 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 sale, the director owned 55,252 shares in the company, valued at approximately $5,801,460. The trade was a 16.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 65,168 shares of company stock worth $5,559,359. 7.70% of the stock is owned by company insiders.

Institutional Trading of MaxLinear

Several hedge funds have recently bought and sold shares of MXL. Larson Financial Group LLC boosted its stake in MaxLinear by 161.7% during the 4th 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 position in MaxLinear by 103.0% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 726 shares during the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in MaxLinear in the 4th quarter valued at $25,000. International Assets Investment Management LLC purchased a new stake in MaxLinear in the 4th quarter valued at $27,000. Finally, EverSource Wealth Advisors LLC raised its position in 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 during the last quarter. Institutional investors and hedge funds 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.