MaxLinear (NASDAQ:MXL) Sets New 1-Year High – Should You Buy?

MaxLinear, Inc (NASDAQ:MXL)’s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $108.65 and last traded at $108.47, with a volume of 5501522 shares changing hands. The stock had previously closed at $96.60.

Analyst Ratings Changes

A number of equities analysts recently commented on MXL shares. Needham & Company LLC upgraded shares of MaxLinear from a “hold” rating to a “buy” rating and set a $60.00 target price on the stock in a research report on Friday, April 24th. Stifel Nicolaus upped their price target on shares of MaxLinear from $105.00 to $110.00 and gave the company a “buy” rating in a research report on Monday. Benchmark assumed coverage on MaxLinear in a research note on Wednesday, May 27th. They set a “buy” rating and a $125.00 price objective on the stock. Wall Street Zen downgraded MaxLinear from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $40.00 target price on shares of MaxLinear in a research note on Friday, April 24th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $65.50.

MaxLinear Stock Down 12.2%

The company has a quick ratio of 1.12, a current ratio of 1.70 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $10.06 billion, a P/E ratio of -73.94 and a beta of 3.91. The company has a 50-day moving average of $85.04 and a two-hundred day moving average of $41.87.

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

Insider Activity

In other MaxLinear news, insider Connie H. Kwong sold 35,000 shares of the company’s stock in a transaction dated 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 sale, the insider owned 13,947 shares in the company, valued at approximately $1,352,301.12. This represents a 71.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Thomas E. Pardun sold 11,000 shares of MaxLinear stock in a transaction that occurred on Tuesday, May 26th. The shares were 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 of the company’s stock, valued at $5,801,460. The trade was a 16.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 65,168 shares of company stock valued at $5,559,358. 7.70% of the stock is owned by company insiders.

Institutional Trading of MaxLinear

Several hedge funds and other institutional investors have recently made changes to their positions in MXL. Pure Financial Advisors LLC bought a new stake in MaxLinear in the fourth quarter worth $1,424,000. HighTower Advisors LLC increased its holdings in shares of MaxLinear by 1.7% during the fourth quarter. HighTower Advisors LLC now owns 656,319 shares of the semiconductor company’s stock valued at $11,440,000 after acquiring an additional 10,948 shares in the last quarter. Pictet Asset Management Holding SA bought a new position in shares of MaxLinear during the fourth quarter valued at $190,000. Tudor Investment Corp ET AL raised its position in shares of MaxLinear by 68.5% in the 3rd quarter. Tudor Investment Corp ET AL now owns 427,195 shares of the semiconductor company’s stock worth $6,869,000 after purchasing an additional 173,709 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in shares of MaxLinear by 4.8% in the 4th quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company’s stock worth $232,279,000 after purchasing an additional 605,903 shares during the last quarter. Hedge funds and other institutional investors 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.