MaxLinear (NASDAQ:MXL) Shares Gap Down – Time to Sell?

MaxLinear, Inc (NASDAQ:MXL) shares gapped down prior to trading on Thursday . The stock had previously closed at $88.84, but opened at $82.94. MaxLinear shares last traded at $83.7540, with a volume of 522,089 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Roth Capital upgraded MaxLinear from a “neutral” rating to a “buy” rating and set a $60.00 price objective on the stock in a report on Friday, April 24th. Loop Capital upgraded MaxLinear from a “hold” rating to a “buy” rating and increased their target price for the company from $17.00 to $75.00 in a research note on Wednesday, April 29th. Benchmark began coverage on shares of MaxLinear in a research report on Wednesday, May 27th. They set a “buy” rating and a $125.00 price target for the company. Weiss Ratings restated a “sell (d-)” rating on shares of MaxLinear in a research note on Tuesday, April 21st. Finally, Wall Street Zen upgraded shares of MaxLinear from a “hold” rating to a “buy” rating in a research note on Sunday, July 5th. Five 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 currently has a consensus rating of “Hold” and an average price target of $65.50.

MaxLinear Price Performance

The company has a 50 day moving average of $91.93 and a 200-day moving average of $47.06. The stock has a market capitalization of $7.19 billion, a P/E ratio of -52.84 and a beta of 3.91. 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 released its earnings results on Thursday, April 23rd. The semiconductor company reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.04. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. The firm had revenue of $137.19 million during the quarter, compared to analyst estimates of $137.15 million. During the same quarter in the previous year, the firm earned ($0.05) earnings per share. The firm’s revenue for the quarter was up 43.0% compared to the same quarter last year. Sell-side analysts predict that MaxLinear, Inc will post 0.52 EPS for the current year.

Insider Activity

In related news, Director Thomas E. Pardun sold 11,000 shares of the stock in a transaction dated 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 sale, the director owned 55,252 shares in the company, valued at $5,801,460. This represents a 16.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Connie H. Kwong sold 35,000 shares of the firm’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $96.96, for a total transaction of $3,393,600.00. Following the completion of the transaction, the insider directly owned 13,947 shares in the company, valued at $1,352,301.12. This represents a 71.51% 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 $5,559,358. 7.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC boosted its holdings in shares of MaxLinear by 16.1% during the first quarter. EverSource Wealth Advisors LLC now owns 1,563 shares of the semiconductor company’s stock valued at $27,000 after acquiring an additional 217 shares during the period. GAMMA Investing LLC increased its holdings in shares of MaxLinear by 5.6% in the 2nd quarter. GAMMA Investing LLC now owns 6,152 shares of the semiconductor company’s stock worth $788,000 after acquiring an additional 326 shares during the period. Carolina Wealth Advisors LLC bought a new stake in MaxLinear in the 2nd quarter valued at about $47,000. Captrust Financial Advisors lifted its position in MaxLinear by 4.3% in the 4th quarter. Captrust Financial Advisors now owns 14,074 shares of the semiconductor company’s stock valued at $245,000 after purchasing an additional 577 shares during the last quarter. Finally, State of Alaska Department of Revenue grew its position in MaxLinear by 1.4% in the 4th quarter. State of Alaska Department of Revenue now owns 45,677 shares of the semiconductor company’s stock worth $795,000 after purchasing an additional 632 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.