MaxLinear, Inc. (MXL) Shares Soar on Solid Earnings

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Shares of MaxLinear, Inc. (NYSE:MXL) are up significantly in late morning trading today after the company announced a solid quarterly report after the market closed yesterday afternoon.

Revenue for the fourth quarter came in at $98.9 million, up a staggering 205% from a year ago. At the same time, revenue for the full year, 2015, came in at $300.4 million, which represented an increase of 126% over 2014. The strong revenue permitted the company to acquire Entropic back in April of last year, while also providing them with room to grow their organic initiatives related to high-speed optical interconnect and satellite pay TV markets. The company also sees this growth trend continuing in 2016.

“We expect revenue in the first quarter of 2016 to be between $100 million and $105 million, GAAP gross profit to be approximately 57% of revenue, and non-GAAP gross profit to be 59% to 60% of revenue,” MaxLinear, Inc. (NYSE:MXL) stated in a conference call yesterday. The stock is currently trading higher by 14.66% or $1.99 following the positive news, hitting $15.56 per share at the time of us publishing this article. About 1.07 million shares traded hands or up 32.59% from the average. MXL has risen 12.33% since July 6, 2015 and is currently uptrending. It has outperformed the S&P500 by 21.20%.

From a total of 7 analysts covering Maxlinear Inc. (NYSE:MXL) stock, 7 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $25 while the lowest target price is $7. The mean of all analyst targets is $20.43 which is 31.30% above today’s ($15.56) stock price. Maxlinear Inc. was the topic of 11 analyst reports since September 17, 2015 according to the firm StockzIntelligence Inc. TH Capital maintained shares on January 13 with a “Buy” rating. Maxim Group maintained MXL stock in a recent report from January 7 with a “Buy” rating.

The institutional sentiment decreased to 0.87 in Q2 2015. It’s down 2.97, from 3.84 in 2015Q2. The ratio fall, as 23 funds sold all their MaxLinear, Inc. shares they owned while 59 reduced their positions. 21 funds bought stakes while 50 increased their total positions. Institutions now own 43.42 million shares which is 48.56% less than the previous share count of 84.42 million in 2015Q2.

Raging Capital Management Llc holds 4.4% of its total portfolio in MaxLinear, Inc., equating to 2.69 million shares. Nokomis Capital L.L.C. owns 1.10 million shares representing 3.91% of their total US portfolio. Moreover, Elk Creek Partners Llc has 3.01% of their total portfolio invested in the company, equating to 3.00 million shares. The California-based Avalon Global Asset Management Llc has a total of 2.72% of their portfolio invested in the stock. S Squared Technology Llc, a New York-based fund reported 176,400 shares owned.

Since May 27, 2015, the stock had 0 insider purchases, and 2 selling transactions for a total of $256,310 in net activity. Lachance Michael J. sold 4,597 shares worth $47,765. Reddy Madhukar sold 19,426 shares worth $187,154.

MaxLinear, Inc. is a provider of integrated, radio-frequency and mixed-signal integrated circuits for broadband communications and data center, metro, and long-haul transport network applications. The company has a market cap of $958.22 million. The Firm offers semiconductor products, such as RF Receivers, RF Receiver systems-on-chip (SoCs), Laser Modulator Drivers, Transimpedance Amplifiers, and Clock and Data Recovery Circuits. It currently has negative earnings.

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