MaxLinear (NASDAQ:MXL) Trading Down 6.4% – Should You Sell?

MaxLinear, Inc. (NASDAQ:MXL)’s stock price traded down 6.4% during mid-day trading on Tuesday . The company traded as low as $18.06 and last traded at $18.18. 576,684 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 1,027,392 shares. The stock had previously closed at $19.43.

Wall Street Analysts Forecast Growth

MXL has been the topic of several recent research reports. Susquehanna lowered MaxLinear from a “positive” rating to a “neutral” rating and cut their target price for the company from $26.00 to $15.00 in a report on Tuesday, October 1st. Craig Hallum cut their price objective on MaxLinear from $28.00 to $25.00 and set a “buy” rating on the stock in a research note on Thursday, October 24th. Benchmark increased their price target on MaxLinear from $22.00 to $28.00 and gave the company a “buy” rating in a report on Monday. Wells Fargo & Company started coverage on shares of MaxLinear in a research note on Friday, November 22nd. They issued an “equal weight” rating and a $14.00 price objective for the company. Finally, Needham & Company LLC reissued a “hold” rating on shares of MaxLinear in a research report on Thursday, October 24th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $23.14.

MaxLinear Trading Down 7.4 %

The company has a current ratio of 1.95, a quick ratio of 1.38 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $1.52 billion, a P/E ratio of -7.14 and a beta of 1.87. The business’s fifty day simple moving average is $14.90 and its two-hundred day simple moving average is $16.04.

MaxLinear (NASDAQ:MXL) last released its earnings results on Wednesday, October 23rd. The semiconductor company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.32) by ($0.04). MaxLinear had a negative net margin of 57.37% and a negative return on equity of 19.22%. The company had revenue of $81.10 million during the quarter, compared to the consensus estimate of $80.40 million. During the same quarter in the previous year, the business posted ($0.02) EPS. The firm’s quarterly revenue was down 40.2% on a year-over-year basis. As a group, analysts forecast that MaxLinear, Inc. will post -1.66 earnings per share for the current year.

Insider Transactions at MaxLinear

In related news, Director Ted L. Tewksbury III sold 5,800 shares of the firm’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $15.36, for a total transaction of $89,088.00. Following the completion of the transaction, the director now owns 69,717 shares in the company, valued at $1,070,853.12. This trade represents a 7.68 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Connie H. Kwong sold 5,000 shares of the company’s stock in a transaction on Wednesday, December 4th. The shares were sold at an average price of $18.61, for a total value of $93,050.00. Following the completion of the sale, the insider now owns 49,147 shares in the company, valued at $914,625.67. This trade represents a 9.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 16,900 shares of company stock valued at $276,078. 8.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On MaxLinear

Several institutional investors and hedge funds have recently made changes to their positions in MXL. Point72 Asia Singapore Pte. Ltd. grew its holdings in shares of MaxLinear by 5,114.3% during the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 126,863 shares of the semiconductor company’s stock worth $1,837,000 after purchasing an additional 124,430 shares during the last quarter. Quantbot Technologies LP grew its holdings in MaxLinear by 111.7% during the 3rd quarter. Quantbot Technologies LP now owns 66,363 shares of the semiconductor company’s stock worth $961,000 after acquiring an additional 35,018 shares during the last quarter. Vaughan Nelson Investment Management L.P. acquired a new stake in MaxLinear in the 3rd quarter valued at about $16,696,000. Two Sigma Advisers LP raised its stake in shares of MaxLinear by 21.8% in the third quarter. Two Sigma Advisers LP now owns 694,149 shares of the semiconductor company’s stock worth $10,051,000 after acquiring an additional 124,300 shares during the last quarter. Finally, Mirabella Financial Services LLP acquired a new position in shares of MaxLinear during the third quarter worth approximately $551,000. Institutional investors and hedge funds own 90.79% of the company’s stock.

About MaxLinear

MaxLinear, Inc provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management.