MaxLinear (NASDAQ:MXL) Stock Falls 15.1% – Should You Sell?

Shares of MaxLinear, Inc (NASDAQ:MXL) dropped 15.1% during trading on Thursday. The company traded as low as $49.08 and last traded at $48.2410. Approximately 643,294 shares traded hands during trading, a decline of 80% from the average session volume of 3,147,556 shares. The stock had previously closed at $56.85.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Wall Street Zen upgraded shares of MaxLinear from a “hold” rating to a “buy” rating in a research report on Sunday, July 26th. Stifel Nicolaus boosted their price objective on shares of MaxLinear from $110.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Morgan Stanley set a $125.00 target price on MaxLinear in a research report on Monday, September 14th. Zacks Research raised MaxLinear from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 28th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a report on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, MaxLinear presently has an average rating of “Moderate Buy” and a consensus price target of $94.30.

MaxLinear Stock Up 11.0%

The company has a quick ratio of 1.57, a current ratio of 2.22 and a debt-to-equity ratio of 0.31. The company has a 50 day simple moving average of $76.26 and a two-hundred day simple moving average of $60.27. The company has a market capitalization of $4.48 billion, a P/E ratio of -132.92 and a beta of 3.97.

MaxLinear (NASDAQ:MXL) last released 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 negative net margin of 4.45% and a positive return on equity of 12.89%. The firm had revenue of $218.06 million during the quarter, compared to analyst estimates of $214.95 million. During the same quarter last year, the business earned $0.14 EPS. The business’s revenue was up 72.4% on a year-over-year basis. As a group, equities analysts predict that MaxLinear, Inc will post 1.10 EPS for the current year.

Insider Buying and Selling at MaxLinear

In other news, CEO Kishore Seendripu sold 351,454 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $85.95, for a total transaction of $30,207,471.30. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 7.70% of the company’s stock.

Institutional Investors Weigh In On MaxLinear

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of MaxLinear during the second quarter worth approximately $1,754,062,000. Dimensional Fund Advisors LP increased its holdings in MaxLinear by 7.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,689,692 shares of the semiconductor company’s stock worth $29,376,000 after purchasing an additional 113,058 shares during the period. The Manufacturers Life Insurance Company purchased a new position in MaxLinear during the 2nd quarter worth $165,221,000. AIGH Capital Management LLC bought a new stake in MaxLinear during the 2nd quarter valued at $104,729,000. Finally, Bank of America Corp DE lifted its holdings in shares of MaxLinear by 6.9% in the 1st quarter. Bank of America Corp DE now owns 641,034 shares of the semiconductor company’s stock worth $11,148,000 after buying an additional 41,119 shares during the period. 90.79% of the stock is owned by hedge funds and other institutional investors.

MaxLinear Company Profile

MaxLinear, Inc is a fabless semiconductor company that designs, develops and sells integrated circuits and related solutions for broadband communications, wired and wireless infrastructure, data centers, industrial applications and consumer electronics. Its products are used by equipment manufacturers and service providers to support the transmission, processing and management of voice, video and data.

The company’s portfolio includes broadband access system-on-chip products, Ethernet transceivers and controllers, high-speed interconnect and communications devices, radio-frequency and analog products, optical and copper connectivity solutions, and power-management components.