MaxLinear (NASDAQ:MXL) Trading Down 5.8% – Here’s What Happened

Shares of MaxLinear, Inc (NASDAQ:MXL) traded down 5.8% during mid-day trading on Thursday . The company traded as low as $18.56 and last traded at $18.4740. 376,481 shares changed hands during mid-day trading, a decline of 75% from the average session volume of 1,526,856 shares. The stock had previously closed at $19.61.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on MXL. Stifel Nicolaus set a $23.00 target price on MaxLinear in a report on Friday, October 24th. Weiss Ratings reissued a “sell (d-)” rating on shares of MaxLinear in a research report on Wednesday, October 8th. Zacks Research cut shares of MaxLinear from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 22nd. Williams Trading set a $25.00 price target on shares of MaxLinear in a report on Friday, October 24th. Finally, Benchmark reaffirmed a “buy” rating and issued a $25.00 target price on shares of MaxLinear in a research report on Friday, October 24th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $19.94.

MaxLinear Stock Down 5.3%

The firm has a 50 day simple moving average of $15.90 and a two-hundred day simple moving average of $15.21. The company has a quick ratio of 1.08, a current ratio of 1.55 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $1.62 billion, a P/E ratio of -8.89 and a beta of 1.83.

MaxLinear (NASDAQ:MXL) last issued its earnings results on Thursday, October 23rd. The semiconductor company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.12 by $0.02. MaxLinear had a negative return on equity of 12.74% and a negative net margin of 42.43%.The firm had revenue of $126.46 million during the quarter, compared to the consensus estimate of $124.66 million. During the same quarter in the previous year, the firm earned ($0.36) earnings per share. The business’s quarterly revenue was up 56.0% on a year-over-year basis. On average, equities research analysts expect that MaxLinear, Inc will post -0.37 earnings per share for the current year.

MaxLinear announced that its Board of Directors has authorized a share repurchase plan on Monday, November 24th that authorizes the company to repurchase $75.00 million in outstanding shares. This repurchase authorization authorizes the semiconductor company to buy up to 5.8% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, Director Daniel A. Artusi sold 20,747 shares of MaxLinear stock in a transaction that occurred on Thursday, October 30th. The shares were sold at an average price of $15.39, for a total transaction of $319,296.33. Following the sale, the director directly owned 12,141 shares in the company, valued at $186,849.99. This trade represents a 63.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 7.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Invesco Ltd. boosted its holdings in MaxLinear by 414.8% in the first quarter. Invesco Ltd. now owns 1,684,247 shares of the semiconductor company’s stock worth $18,291,000 after acquiring an additional 1,357,093 shares in the last quarter. AIGH Capital Management LLC bought a new stake in MaxLinear during the 3rd quarter valued at $17,809,000. Marshall Wace LLP increased its stake in MaxLinear by 239.0% during the 2nd quarter. Marshall Wace LLP now owns 1,385,171 shares of the semiconductor company’s stock valued at $19,683,000 after purchasing an additional 976,537 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in MaxLinear by 1,426.9% during the first quarter. Jacobs Levy Equity Management Inc. now owns 1,004,835 shares of the semiconductor company’s stock worth $10,913,000 after buying an additional 939,027 shares during the last quarter. Finally, Cinctive Capital Management LP bought a new position in shares of MaxLinear in the first quarter valued at $8,610,000. 90.79% of the stock is owned by institutional investors and hedge funds.

MaxLinear Company Profile

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.