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

MaxLinear, Inc (NASDAQ:MXL)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $96.44, but opened at $84.92. MaxLinear shares last traded at $91.3840, with a volume of 717,443 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on MXL shares. Susquehanna reiterated a “neutral” rating and issued a $30.00 target price on shares of MaxLinear in a research note on Monday, April 20th. Roth Mkm raised shares of MaxLinear from a “neutral” 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 reissued a “buy” rating and set a $105.00 target price (up from $49.00) on shares of MaxLinear in a research report on Wednesday, June 3rd. Weiss Ratings restated a “sell (d-)” rating on shares of MaxLinear in a research note on Tuesday, April 21st. Finally, Benchmark started coverage on MaxLinear in a research report on Wednesday, May 27th. They set a “buy” rating and a $125.00 price target for the company. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $65.00.

MaxLinear Stock Performance

The company has a market cap of $7.58 billion, a P/E ratio of -55.72 and a beta of 3.98. The company’s 50-day moving average is $76.74 and its two-hundred day moving average is $38.74. The company has a quick ratio of 1.12, a current ratio of 1.70 and a debt-to-equity ratio of 0.27.

MaxLinear (NASDAQ:MXL) last announced its quarterly earnings data on Thursday, April 23rd. The semiconductor company reported $0.22 EPS for the quarter, topping the consensus estimate 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 company’s revenue for the quarter was up 43.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.05) earnings per share. Equities analysts predict that MaxLinear, Inc will post 0.52 EPS for the current year.

Insider Activity at MaxLinear

In related news, Director Thomas E. Pardun sold 11,000 shares of the company’s stock in a transaction that occurred on 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 owned 55,252 shares in the company, valued at approximately $5,801,460. This represents a 16.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 value of $3,393,600.00. Following the transaction, the insider directly owned 13,947 shares of the company’s stock, valued at approximately $1,352,301.12. This trade represents a 71.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 65,168 shares of company stock valued at $5,559,358. 7.70% of the stock is currently owned by company insiders.

Institutional Trading of MaxLinear

Several hedge funds have recently made changes to their positions in MXL. Invesco Ltd. grew its stake in shares of MaxLinear by 419.9% during the 4th 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 period. Paradigm Capital Management Inc. NY raised its stake in MaxLinear by 582.7% in the 4th quarter. Paradigm Capital Management Inc. NY now owns 861,000 shares of the semiconductor company’s stock valued at $15,007,000 after acquiring an additional 734,875 shares during the period. The Manufacturers Life Insurance Company raised its stake in MaxLinear by 27.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company’s stock valued at $41,054,000 after acquiring an additional 628,719 shares during the period. Defiance ETFs LLC purchased a new stake in MaxLinear during the fourth quarter valued at about $10,944,000. Finally, Vanguard Group Inc. lifted its holdings in MaxLinear by 4.8% during the fourth quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company’s stock valued at $232,279,000 after purchasing an additional 605,903 shares during the last quarter. 90.79% of the stock is currently owned by 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.