Maxim Integrated Products Inc. (MXIM) Shares Plunge After Possible Acquisition Plans Dropped


At appromximately 2:48 p.m. ET today shares of Maxim Integrated Products Inc. (NASDAQ:MXIM) dropped substantially on sudden heavy volume after Bloomberg reported that both Texas Instruments Inc. and Analog Devices Inc. have halted their pursuit to possibly acquire the company. Sources close to Maxim have indicated that neither company could reach a price that they deemed fair for such an acquisition.

Following this news, Maxim Integrated Products Inc. (NASDAQ:MXIM) will continue to work closely with Goldman Sachs Group Inc. in order to come up with a long term plan. This plan may still include selling the company, perhaps to a Chinese buyer, or changing courses and acquiring one or more smaller chipmakers. Shares of Maxim Integrated Products Inc. (NASDAQ:MXIM) are down over 15% over the last eight trading days alone and have started off the new year sunstantially in the red. The stock has fallen 5.22% or $1.79 following this negative news, hitting $32.47 per share. About 3.81M shares traded hands or 33.22% up from the average. MXIM has risen 0.71% since June 4, 2015 and is uptrending. It has outperformed the S&P500 by 5.40%.

From a total of 10 analysts covering Maxim Integrated Products Inc. (NASDAQ:MXIM) stock, 9 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 90% of the ratings are positive. The highest target price is $43 while the lowest target price is $37. The mean of all analyst targets is $40.43 which is 24.51% above today’s ($32.47) stock price. Maxim Integrated Products Inc. was the topic of 12 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Nomura upgraded shares on December 9 to a “Buy” rating. Zacks upgraded MXIM stock in a recent report from September 17 to a “Buy” rating. Finally, Bank of America upgraded the stock to a “Buy” rating in a report they issued on a July 24.

The institutional sentiment increased to 1.12 in Q2 2015. It’s up 0.20, from 0.92 in 2015Q2. The ratio improved, as 32 funds sold all their Maxim Integrated Products Inc. shares they owned while 121 reduced their positions. 46 funds bought stakes while 125 increased their total positions. Institutions now own 237.92 million shares which is 7.08% less than the previous share count of 256.04 million in 2015Q2.

Oaktop Capital Management Ii L.P. holds 5.38% of its total portfolio in Maxim Integrated Products Inc., equating to 717,375 shares. Kempen Capital Management N.V. owns 805,000 shares representing 3.28% of their total US portfolio. Moreover, Hamlin Capital Management Llc has 2.87% of their total portfolio invested in the company, equating to 1.56 million shares. The New Jersey-based Fcg Advisors Llc has a total of 1.68% of their portfolio invested in the stock. Willis Investment Counsel, a Georgia-based fund reported 426,300 shares owned.

Since March 13, 2015, the stock had 0 buys, and 8 selling transactions for a total of $3.56 million in net activity. Neil Christopher J sold 23,000 shares worth $787,750. Grady Robert Edward sold 48,000 shares worth $1.58M. Caron David sold 8,571 shares worth $285,221. Doluca Tunc sold 2,400 shares worth $81,600. The insider Yamasaki Steven T sold 2,976 shares worth $101,935.

Maxim Integrated Products, Inc. is engaged in designing, developing, manufacturing and marketing a range of linear and mixed-signal integrated circuits, referred to as analog circuits. The company has a market cap of $9.17 billion. The Firm also provides a range of high-frequency process technologies and capabilities for use in custom designs. It has 302.71 P/E ratio. The Company’s products include switching regulators, charge pumps, linear regulators, light-emitting diode drivers, power switching, transceivers, level translators, broadband switches, current loop products, real-time clocks, data loggers and microcontrollers.