MaxLinear (NASDAQ:MXL) Shares Gap Down – Should You Sell?

MaxLinear, Inc (NASDAQ:MXL)’s share price gapped down prior to trading on Monday . The stock had previously closed at $66.82, but opened at $62.22. MaxLinear shares last traded at $63.94, with a volume of 420,467 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on MXL. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $40.00 price objective on shares of MaxLinear in a research report on Friday, April 24th. Needham & Company LLC boosted their target price on shares of MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Roth Capital raised their price target on MaxLinear from $60.00 to $100.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Wall Street Zen raised MaxLinear from a “hold” rating to a “buy” rating in a report on Sunday, July 26th. Finally, Northland Securities set a $110.00 price objective on MaxLinear in a research report on Wednesday, June 3rd. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $85.00.

MaxLinear Stock Up 2.6%

The firm has a market cap of $6.22 billion, a PE ratio of -57.81 and a beta of 3.96. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.15 and a current ratio of 1.78. The firm’s 50-day moving average price is $86.90 and its two-hundred day moving average price is $51.66.

MaxLinear (NASDAQ:MXL) last posted its earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.33 by $0.02. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. The firm had revenue of $168.85 million for the quarter, compared to the consensus estimate of $164.64 million. During the same period last year, the firm posted $0.02 EPS. The company’s revenue was up 55.2% on a year-over-year basis. As a group, equities research analysts expect that MaxLinear, Inc will post 0.78 EPS for the current fiscal year.

Insider Activity

In other news, insider Connie H. Kwong sold 35,000 shares of MaxLinear 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 sale, the insider owned 13,947 shares in the company, valued at approximately $1,352,301.12. The trade was a 71.51% 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, Director Thomas E. Pardun sold 11,000 shares of the business’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 completion of the sale, the director directly 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. Company insiders own 7.70% of the company’s stock.

Hedge Funds Weigh In On MaxLinear

A number of hedge funds have recently modified their holdings of MXL. Handelsbanken Fonder AB raised its position in MaxLinear by 7.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 39,381 shares of the semiconductor company’s stock valued at $5,042,000 after purchasing an additional 2,700 shares during the last quarter. Carolina Wealth Advisors LLC acquired a new position in MaxLinear in the second quarter valued at $47,000. World Equity Group Inc. purchased a new stake in shares of MaxLinear in the second quarter valued at about $285,000. Arista Wealth Management LLC acquired a new stake in shares of MaxLinear during the second quarter worth about $387,000. Finally, UNICOM Systems Inc. acquired a new stake in shares of MaxLinear during the second quarter worth about $14,711,000. 90.79% of the stock is currently owned by hedge funds and other 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.