MaxLinear (NASDAQ:MXL) Shares Gap Up – Should You Buy?

MaxLinear, Inc (NASDAQ:MXL) gapped up before the market opened on Tuesday . The stock had previously closed at $75.01, but opened at $80.42. MaxLinear shares last traded at $80.7650, with a volume of 649,145 shares.

Analysts Set New Price Targets

A number of brokerages have weighed in on MXL. Roth Capital raised 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. Needham & Company LLC raised MaxLinear from a “hold” rating to a “buy” rating and set a $60.00 target price for the company in a research note on Friday, April 24th. Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a report on Friday, July 17th. Northland Securities set a $110.00 price target on MaxLinear in a research note on Wednesday, June 3rd. Finally, Susquehanna reaffirmed a “neutral” rating and set a $30.00 price objective on shares of MaxLinear in a report on Monday, April 20th. 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. Based on data from MarketBeat.com, MaxLinear has an average rating of “Hold” and a consensus target price of $71.00.

MaxLinear Price Performance

The stock has a market cap of $7.77 billion, a price-to-earnings ratio of -57.11 and a beta of 3.91. The company’s 50 day moving average is $90.53 and its 200 day moving average is $49.22. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.70 and a quick ratio of 1.12.

MaxLinear (NASDAQ:MXL) last issued its 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. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. The company had revenue of $137.19 million for the quarter, compared to analyst estimates of $137.15 million. During the same period in the prior year, the business posted ($0.05) earnings per share. The firm’s revenue for the quarter was up 43.0% compared to the same quarter last year. Research analysts forecast that MaxLinear, Inc will post 0.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Connie H. Kwong sold 35,000 shares of the firm’s stock in a transaction that occurred 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. This trade represents a 71.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Thomas E. Pardun sold 11,000 shares of MaxLinear stock in a transaction 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 directly owned 55,252 shares of the company’s stock, valued at approximately $5,801,460. This represents a 16.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 65,168 shares of company stock worth $5,559,358. Insiders own 7.70% of the company’s stock.

Institutional Investors Weigh In On MaxLinear

A number of large investors have recently added to or reduced their stakes in MXL. Carolina Wealth Advisors LLC purchased a new stake in shares of MaxLinear in the second quarter valued at about $47,000. CoreCap Advisors LLC purchased a new position in shares of MaxLinear during the 2nd quarter worth approximately $134,000. Larson Financial Group LLC raised its position in shares of MaxLinear by 161.7% during the 4th quarter. Larson Financial Group LLC now owns 1,416 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 875 shares during the last quarter. Smartleaf Asset Management LLC raised its position in shares of MaxLinear by 103.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 726 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in MaxLinear in the 4th quarter valued at approximately $25,000. 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.