MaxLinear (NASDAQ:MXL) Shares Gap Down After Insider Selling

MaxLinear, Inc (NASDAQ:MXL) shares gapped down before the market opened on Tuesday after an insider sold shares in the company. The stock had previously closed at $84.76, but opened at $79.09. MaxLinear shares last traded at $76.8760, with a volume of 550,890 shares traded.

Specifically, CEO Kishore Seendripu sold 351,454 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $85.95, for a total value of $30,207,471.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Kishore Seendripu sold 240,000 shares of MaxLinear stock in a transaction on Friday, August 14th. The stock was sold at an average price of $84.28, for a total value of $20,227,200.00. Following the transaction, the chief executive officer directly owned 175,727 shares of the company’s stock, valued at approximately $14,810,271.56. This represents a 57.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

MXL has been the topic of several research reports. Roth Capital upped their target price on MaxLinear from $60.00 to $100.00 and gave the company a “buy” rating in a report on Friday, July 24th. Northland Securities set a $110.00 price target on MaxLinear in a research note on Wednesday, June 3rd. Susquehanna boosted their price objective on shares of MaxLinear from $45.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. Loop Capital raised shares of MaxLinear from a “hold” rating to a “buy” rating and increased their price objective for the company from $17.00 to $75.00 in a research note on Wednesday, April 29th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of MaxLinear in a report on Friday, July 17th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, MaxLinear has a consensus rating of “Hold” and a consensus target price of $85.00.

Trending Headlines about MaxLinear

Here are the key news stories impacting MaxLinear this week:

• Positive Sentiment: MaxLinear’s expanding portfolio of silicon for AI data-center racks could strengthen its long-term positioning in data-center connectivity and provide a potential growth avenue beyond its traditional broadband markets. Is MaxLinear’s Expanded AI Rack Silicon Portfolio Quietly Reshaping Its Long-Term Positioning?
• Positive Sentiment: The company’s latest reported quarter showed strong momentum: revenue rose 55.2% year over year to $168.85 million, while adjusted EPS of $0.35 exceeded the $0.33 consensus estimate. This provides fundamental support for the stock despite its recent volatility.
• Neutral Sentiment: Recent coverage is focused on what could shape MaxLinear’s next move, indicating that investors are assessing whether the rally can be sustained and whether AI-related opportunities can offset execution and valuation concerns. MaxLinear Slides: What Could Shape Its Next Move?
• Negative Sentiment: CEO Kishore Seendripu disclosed sales totaling 591,454 shares across August 14 and August 17, worth approximately $50.4 million. The August 14 transaction alone reduced his position by 57.73%, leaving 175,727 shares reported afterward. Such sizable insider selling can pressure sentiment, particularly after a major stock-price advance. MaxLinear CEO Sells 240,000 Shares
• Negative Sentiment: A risk-focused analysis is drawing attention to potentially important issues in MaxLinear’s disclosures, adding to investor caution while the company remains unprofitable on a GAAP basis. MaxLinear: An Elephant Size Risk Hidden in the Small Footnotes

MaxLinear Stock Down 8.5%

The firm’s 50 day moving average is $82.84 and its 200-day moving average is $56.61. The firm has a market cap of $6.02 billion, a PE ratio of -55.82 and a beta of 3.95. The company has a quick ratio of 1.15, a current ratio of 1.78 and a debt-to-equity ratio of 0.26.

MaxLinear (NASDAQ:MXL) last released its earnings results on Thursday, July 23rd. The semiconductor company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.33 by $0.02. The firm had revenue of $168.85 million during the quarter, compared to analysts’ expectations of $164.64 million. MaxLinear had a negative net margin of 18.24% and a positive return on equity of 2.24%. MaxLinear’s revenue for the quarter was up 55.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.02 EPS. As a group, equities research analysts expect that MaxLinear, Inc will post 0.78 earnings per share for the current fiscal year.

Institutional Investors Weigh In On MaxLinear

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Carolina Wealth Advisors LLC acquired a new position in MaxLinear in the second quarter valued at $47,000. Global Retirement Partners LLC acquired a new stake in MaxLinear in the 2nd quarter worth about $56,000. State of Wyoming acquired a new stake in MaxLinear in the 2nd quarter worth about $126,000. CoreCap Advisors LLC purchased a new stake in MaxLinear in the 2nd quarter valued at about $134,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of MaxLinear during the 2nd quarter valued at about $147,000. Hedge funds and other institutional investors own 90.79% of the company’s stock.

MaxLinear Company Profile

MaxLinear, Inc is a provider of radio-frequency (RF), analog, and mixed-signal integrated circuits for broadband communications, data center connectivity, and video infrastructure applications. The company’s product portfolio includes high-performance RF front-end modules, broadband power amplifiers, optical and Ethernet transceivers, and network processors designed to support demanding signal processing requirements.

MaxLinear’s semiconductor solutions are used by cable and satellite television operators, fiber-to-the-home service providers, network equipment manufacturers, and data center operators.