MaxLinear (NASDAQ:MXL) Stock Falls 8% – Should You Sell?

Shares of MaxLinear, Inc (NASDAQ:MXL) were down 8% during trading on Friday. The stock traded as low as $54.59 and last traded at $54.2570. 234,726 shares traded hands during trading, a decline of 93% from the average session volume of 3,157,524 shares. The stock had previously closed at $58.96.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on MXL shares. Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a research note on Thursday, October 15th. Susquehanna set a $70.00 price target on MaxLinear in a research note on Friday, October 23rd. Wall Street Zen upgraded MaxLinear from a “hold” rating to a “buy” rating in a report on Sunday, July 26th. Roth Capital raised their price objective on MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Finally, Needham & Company LLC raised their price objective on MaxLinear from $60.00 to $100.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $94.30.

MaxLinear Price Performance

The company has a debt-to-equity ratio of 0.31, a current ratio of 2.22 and a quick ratio of 1.57. The firm has a market capitalization of $5.08 billion, a price-to-earnings ratio of -150.76 and a beta of 3.97. The stock has a 50 day moving average price of $75.97 and a two-hundred day moving average price of $61.21.

MaxLinear (NASDAQ:MXL) last posted its earnings results on Thursday, October 22nd. The semiconductor company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.06. MaxLinear had a positive return on equity of 12.89% and a negative net margin of 4.45%. The firm had revenue of $218.06 million for the quarter, compared to analyst estimates of $214.95 million. During the same quarter in the prior year, the company earned $0.14 EPS. MaxLinear’s revenue was up 72.4% on a year-over-year basis. As a group, analysts expect that MaxLinear, Inc will post 1.10 EPS for the current year.

Insiders Place Their Bets

In other MaxLinear news, CEO Kishore Seendripu sold 351,454 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $85.95, for a total value of $30,207,471.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 7.70% of the stock is currently owned by insiders.

Institutional Trading of MaxLinear

A number of large investors have recently modified their holdings of the stock. Jump Financial LLC raised its stake in shares of MaxLinear by 183.2% in the third quarter. Jump Financial LLC now owns 140,801 shares of the semiconductor company’s stock valued at $12,716,000 after acquiring an additional 91,075 shares in the last quarter. Pathstone Holdings LLC grew its stake in MaxLinear by 35.2% during the 3rd quarter. Pathstone Holdings LLC now owns 11,861 shares of the semiconductor company’s stock worth $1,071,000 after purchasing an additional 3,085 shares in the last quarter. Empowered Funds LLC grew its stake in MaxLinear by 169.8% during the 3rd quarter. Empowered Funds LLC now owns 7,053 shares of the semiconductor company’s stock worth $637,000 after purchasing an additional 4,439 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in MaxLinear during the 3rd quarter worth about $20,862,000. Finally, Polymer Capital Management US LLC increased its holdings in MaxLinear by 19.5% during the 3rd quarter. Polymer Capital Management US LLC now owns 12,877 shares of the semiconductor company’s stock worth $1,163,000 after purchasing an additional 2,105 shares during the period. Hedge funds and other institutional investors own 90.79% of the company’s stock.

About MaxLinear

MaxLinear, Inc. is a fabless semiconductor company that designs radio-frequency, analog and mixed-signal components, as well as system-on-chip products. Its technologies are used to move and process data in broadband, wireless, wired-networking and infrastructure applications. The company’s products support equipment such as broadband access devices, Wi-Fi systems, Ethernet and optical networking equipment, and wireless infrastructure. MaxLinear sells to customers around the world, including communications equipment manufacturers and other technology companies.