MaxLinear Analysts Set Average Price Target at $19.94 Amid Mixed Ratings

Shares of MaxLinear, Inc. (NASDAQ:MXL) have been assigned an average recommendation of “Hold” by ten research firms covering the stock, according to Marketbeat. The consensus price target stands at approximately $19.94. The ratings reflect a mixed outlook, with one analyst issuing a sell recommendation, six suggesting a hold, and three providing a buy rating.

Several research firms have recently commented on MaxLinear’s stock performance. On August 4, Loop Capital reaffirmed its “hold” rating while raising the price target to $15.00, an increase from the previous target of $10.00. Additionally, Benchmark maintained a “buy” rating with a target price of $25.00 as stated in a report on October 24. Conversely, Weiss Ratings reiterated a “sell (d-)” rating on October 8, while Zacks Research downgraded the stock from a “strong buy” to a “hold” on September 22. Notably, Wall Street Zen upgraded its rating from “hold” to “buy” on September 20.

Recent Financial Performance

MaxLinear reported its quarterly earnings on October 23, revealing earnings per share (EPS) of $0.14, surpassing the consensus estimate of $0.12 by $0.02. The company’s revenue for the quarter totaled $126.46 million, exceeding analyst projections of $124.66 million. This marks a significant year-over-year increase of 56.0%, as the company reported a loss of ($0.36) EPS during the same period last year.

Despite this positive revenue growth, MaxLinear reported a negative net margin of 42.43% and a negative return on equity of 12.74%. Analysts anticipate that for the current fiscal year, MaxLinear will post an average EPS of ($0.37).

On November 24, MaxLinear’s Board of Directors approved a share buyback plan, allowing the company to repurchase up to $75.00 million of its outstanding shares. This plan permits the repurchase of approximately 5.8% of its stock through open market purchases, which often indicates that company leadership believes its shares are undervalued.

Insider Transactions and Institutional Activity

In other developments, Director Daniel A. Artusi sold 20,747 shares of MaxLinear on October 30, at an average price of $15.39. The transaction totaled $319,296.33, and following the sale, Artusi retained 12,141 shares, valued at $186,849.99, reflecting a decrease in ownership of 63.08%. This transaction was disclosed in a filing with the Securities & Exchange Commission.

Institutional investors have actively adjusted their positions in MaxLinear recently. EverSource Wealth Advisors LLC increased its stake by 97.0% during the third quarter, acquiring 2,110 shares valued at $34,000. Similarly, Quarry LP grew its holdings by an impressive 1,293.0%, now owning 2,187 shares worth $35,000. Other notable changes include Farther Finance Advisors LLC, which purchased a new position valued at $44,000, and PNC Financial Services Group Inc., which increased its position by 104.4%, now holding 3,579 shares valued at $51,000.

Currently, institutional investors and hedge funds own 90.79% of MaxLinear’s stock, reflecting a strong interest in the semiconductor company within the financial community.

MaxLinear, Inc. continues to provide cutting-edge communications systems-on-chip solutions globally, integrating a variety of components essential for high-speed communication systems, including radio frequency, power management, and data processing technologies. As the company navigates these recent changes and prepares for its next fiscal year, analysts and investors alike will be closely watching its performance and strategic decisions.