A look into MaxLinear Inc. (MXL)’s deeper side

MaxLinear Inc. (NASDAQ: MXL) stock fell -2.10% on Tuesday to $28.46 against a previous-day closing price of $29.07. With 0.58 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.59 million shares. The 52-week range on MXL shows that it touched its highest point at $43.66 and its lowest point at $23.05 during that stretch. It currently has a 1-year price target of $36.82. Beta for the stock currently stands at 1.91.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MXL was up-trending over the past week, with a rise of 13.66%, but this was down by -7.54% over a month. Three-month performance dropped to -16.05% while six-month performance fell -20.06%. The stock lost -25.98% in the past year, while it has lost -16.17% so far this year. A look at the trailing 12-month EPS for MXL yields 1.25 with Next year EPS estimates of 2.49. For the next quarter, that number is 0.33. This implies an EPS growth rate of 193.60% for this year and 34.61% for next year. EPS is expected to decline by -6.58% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 69.50%.

Float and Shares Shorts:

At present, 79.47 million MXL shares are outstanding with a float of 72.61 million shares on hand for trading. On Apr 27, 2023, short shares totaled 5.3 million, which was 6.62% higher than short shares on Mar 30, 2023. In addition to Dr. Kishore Seendripu Ph.D. as the firm’s Co-Founder, Chairman, CEO & Pres, Mr. Steven G. Litchfield serves as its CFO & Chief Corp. Strategy Officer.

Institutional Ownership:

Other institutions hold 53.39% of MXL, in contrast to 36.51% held by mutual funds. Shares owned by individuals account for 11.31%. As the largest shareholder in MXL with 13.90% of the stake, BlackRock Fund Advisors holds 11,120,777 shares worth 11,120,777. A second-largest stockholder of MXL, The Vanguard Group, Inc., holds 8,913,432 shares, controlling over 11.14% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in MXL, holding 3,253,041 shares or 4.07% stake. With a 6.57% stake in MXL, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 5,253,822 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.73% of MXL stock, is the second-largest Mutual Fund holder. It holds 2,184,159 shares valued at 52.7 million. Vanguard Small Cap Index Fund holds 2.32% of the stake in MXL, owning 1,854,920 shares worth 44.76 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, MXL reported revenue of $280.01M and operating income of $39.47M. The EBITDA in the recently reported quarter was $66.30M and diluted EPS was $0.40.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MXL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MXL analysts setting a high price target of $50.00 and a low target of $25.00, the average target price over the next 12 months is $37.55. Based on these targets, MXL could surge 75.69% to reach the target high and fall by -12.16% to reach the target low. Reaching the average price target will result in a growth of 31.94% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded MXL stock several times over the past three months with 5 Buys and 1 Sells. In these transactions, 22,792 shares were bought while 1,197 shares were sold. The number of buy transactions has increased to 97 while that of sell transactions has risen to 66 over the past year. The total number of shares bought during that period was 2,848,108 while 2,011,953 shares were sold.

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