MaxLinear (NASDAQ:MXL) Shares Gap Down on Disappointing Earnings

MaxLinear, Inc. (NASDAQ:MXL) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $21.79, but opened at $19.74. MaxLinear shares last traded at $18.77, with a volume of 603,625 shares changing hands.

The semiconductor company reported ($0.27) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.14). MaxLinear had a negative net margin of 57.37% and a negative return on equity of 19.22%.

Analysts Set New Price Targets

MXL has been the topic of a number of research analyst reports. Wells Fargo & Company raised their target price on MaxLinear from $19.00 to $20.00 and gave the company an “equal weight” rating in a report on Thursday. Northland Securities raised their price objective on shares of MaxLinear from $25.00 to $27.50 and gave the stock an “outperform” rating in a research note on Monday, January 6th. Craig Hallum cut their target price on shares of MaxLinear from $28.00 to $25.00 and set a “buy” rating for the company in a research note on Thursday, October 24th. Benchmark raised their price target on shares of MaxLinear from $22.00 to $28.00 and gave the stock a “buy” rating in a research report on Monday, December 9th. Finally, Susquehanna cut their price objective on shares of MaxLinear from $25.00 to $23.00 and set a “neutral” rating for the company in a research report on Thursday. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and four have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $25.50.

Insiders Place Their Bets

In other MaxLinear news, VP William Torgerson sold 6,100 shares of the business’s stock in a transaction dated Friday, November 8th. The shares were sold at an average price of $15.40, for a total value of $93,940.00. Following the transaction, the vice president now directly owns 179,262 shares in the company, valued at $2,760,634.80. The trade was a 3.29 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Steven G. Litchfield sold 32,000 shares of the firm’s stock in a transaction that occurred on Friday, December 13th. The stock was sold at an average price of $20.35, for a total transaction of $651,200.00. Following the sale, the insider now directly owns 365,868 shares of the company’s stock, valued at approximately $7,445,413.80. The trade was a 8.04 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 48,900 shares of company stock worth $927,278 over the last quarter. Company insiders own 8.60% of the company’s stock.

Institutional Trading of MaxLinear

Hedge funds and other institutional investors have recently modified their holdings of the stock. Pacer Advisors Inc. grew its position in shares of MaxLinear by 29.0% during the 4th quarter. Pacer Advisors Inc. now owns 1,968 shares of the semiconductor company’s stock worth $39,000 after buying an additional 443 shares during the period. Truvestments Capital LLC acquired a new stake in MaxLinear during the 3rd quarter worth $42,000. R Squared Ltd bought a new stake in shares of MaxLinear during the 4th quarter valued at $45,000. GAMMA Investing LLC lifted its stake in shares of MaxLinear by 151.8% in the 3rd quarter. GAMMA Investing LLC now owns 3,472 shares of the semiconductor company’s stock valued at $50,000 after purchasing an additional 2,093 shares during the period. Finally, CWM LLC boosted its position in shares of MaxLinear by 321.3% in the 3rd quarter. CWM LLC now owns 5,793 shares of the semiconductor company’s stock worth $84,000 after purchasing an additional 4,418 shares during the last quarter. Institutional investors and hedge funds own 90.79% of the company’s stock.

MaxLinear Trading Down 12.1 %

The business has a 50 day moving average of $19.77 and a 200 day moving average of $16.43. The firm has a market capitalization of $1.61 billion, a price-to-earnings ratio of -7.08 and a beta of 1.79. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.95 and a quick ratio of 1.38.

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.