Zacks Investment Research Downgrades MaxLinear (MXL) to Sell

Zacks Investment Research cut shares of MaxLinear (NYSE:MXL) from a hold rating to a sell rating in a research report released on Saturday morning.

According to Zacks, “MaxLinear is a provider of radio-frequency analog and mixed signal semiconductor SoC solutions for broadband communication applications offering small silicon die-size, and low power consumption. The Company’s RF receiver products capture and process digital and analog broadband signals to be decoded for various applications. These products include both RF receivers and RF receiver systems-on-chip (SoCs), which incorporate the Company’s integrated radio system architecture and the functionality necessary to demodulate broadband signals. MaxLinear’s current products enable the display of broadband video in a wide range of electronic devices, including cable and terrestrial set top boxes, digital televisions, mobile handsets, personal computers, netbooks, and in-vehicle entertainment devices. MaxLinear is based in Carlsbad, California. “

MXL has been the subject of several other reports. Needham & Company LLC reissued a buy rating and set a $20.00 price objective on shares of MaxLinear in a research note on Wednesday, October 31st. ValuEngine raised shares of MaxLinear from a strong sell rating to a sell rating in a research note on Thursday, August 9th. Stifel Nicolaus lowered their price objective on shares of MaxLinear from $31.00 to $25.00 and set a $17.41 rating for the company in a research note on Thursday, July 19th. Susquehanna Bancshares cut shares of MaxLinear from a positive rating to a neutral rating and lowered their price objective for the company from $21.00 to $18.00 in a research note on Thursday, October 25th. Finally, UBS Group cut shares of MaxLinear from a positive rating to a neutral rating in a research note on Thursday, October 25th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $23.83.

Shares of NYSE MXL opened at $20.08 on Friday. MaxLinear has a 52-week low of $14.87 and a 52-week high of $28.06. The firm has a market cap of $1.39 billion, a PE ratio of 17.02, a P/E/G ratio of 1.51 and a beta of 0.87. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.62 and a quick ratio of 1.99.

MaxLinear (NYSE:MXL) last announced its quarterly earnings data on Tuesday, October 30th. The semiconductor company reported $0.19 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.18 by $0.01. MaxLinear had a negative net margin of 11.18% and a positive return on equity of 15.35%. The company had revenue of $85.00 million during the quarter, compared to analysts’ expectations of $85.01 million. During the same period in the previous year, the company earned $0.39 EPS. The business’s quarterly revenue was down 25.2% compared to the same quarter last year. As a group, sell-side analysts expect that MaxLinear will post 0.67 EPS for the current fiscal year.

In other MaxLinear news, CEO Kishore Seendripu purchased 27,100 shares of the firm’s stock in a transaction that occurred on Friday, August 10th. The stock was purchased at an average cost of $18.47 per share, with a total value of $500,537.00. Following the transaction, the chief executive officer now owns 130,474 shares in the company, valued at $2,409,854.78. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 11.47% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently made changes to their positions in MXL. Dimensional Fund Advisors LP boosted its position in MaxLinear by 4.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,369,613 shares of the semiconductor company’s stock worth $31,159,000 after purchasing an additional 55,131 shares during the period. The Manufacturers Life Insurance Company boosted its position in MaxLinear by 78.7% during the 1st quarter. The Manufacturers Life Insurance Company now owns 83,297 shares of the semiconductor company’s stock worth $1,895,000 after purchasing an additional 36,685 shares during the period. WINTON GROUP Ltd purchased a new stake in MaxLinear during the 1st quarter worth $394,000. Principal Financial Group Inc. boosted its position in MaxLinear by 2.4% during the 1st quarter. Principal Financial Group Inc. now owns 467,041 shares of the semiconductor company’s stock worth $10,625,000 after purchasing an additional 11,080 shares during the period. Finally, Fox Run Management L.L.C. purchased a new stake in MaxLinear during the 2nd quarter worth $161,000. 94.47% of the stock is owned by hedge funds and other institutional investors.

About MaxLinear

MaxLinear, Inc provides radio-frequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. The company offers range of semiconductor products, such as RF receivers and RF receiver SoCs, wireless infrastructure backhaul RF receivers and modem SoCs, laser modulator drivers, transimpedance amplifiers, clock and data recovery circuits, interface solutions, power management products, and data encryption and compression products.

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