MaxLinear (NASDAQ:MXL) Trading Down 10.1% – Here’s Why

Shares of MaxLinear, Inc (NASDAQ:MXL) dropped 10.1% on Friday . The stock traded as low as $17.21 and last traded at $17.3240. Approximately 417,999 shares changed hands during mid-day trading, a decline of 61% from the average daily volume of 1,077,104 shares. The stock had previously closed at $19.27.

MaxLinear News Roundup

Here are the key news stories impacting MaxLinear this week:

• Positive Sentiment: Q4 results beat consensus — revenue of $136.4M (up ~48% YoY) and EPS of $0.19, topping estimates and showing recovery vs. last year’s loss. MaxLinear Q4 Results Press Release
• Positive Sentiment: Management set Q1 revenue guidance of $130M–$140M, slightly above consensus, and highlighted improving data‑center momentum that supports 2026 outlook. Q1 Guidance (Press Release)
• Neutral Sentiment: Wells Fargo raised its price target from $18 to $20 but left an “equal weight” rating — a modest positive for valuation but not a buy signal. Wells Fargo Price Target Note
• Negative Sentiment: Analysts and commentary warned of “lumpy” quarter‑to‑quarter performance — investors may expect volatility in growth and margins even as revenue expands. MaxLinear Q4: Still A Lot Of Positives, But Lumpy Performance To Be Expected
• Negative Sentiment: Needham/TipRanks highlighted an ongoing arbitration with SIMO as a material overhang — unresolved legal/contract risk can suppress multiple expansion and investor appetite. Needham: SIMO Arbitration Overhang
• Negative Sentiment: Profitability metrics remain weak (negative net margin and ROE), which raises concern about sustainable earnings power even with top‑line growth. Q4 Results and Metrics (MarketBeat)

Analyst Ratings Changes

MXL has been the subject of several recent analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of MaxLinear in a research note on Thursday, January 22nd. Wells Fargo & Company raised their price target on MaxLinear from $18.00 to $20.00 and gave the company an “equal weight” rating in a report on Friday. Stifel Nicolaus set a $23.00 price objective on MaxLinear in a report on Friday, October 24th. Benchmark raised their target price on MaxLinear from $25.00 to $28.00 and gave the company a “buy” rating in a report on Friday, January 16th. Finally, Williams Trading set a $25.00 price objective on shares of MaxLinear in a report on Friday, October 24th. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $19.57.

MaxLinear Trading Down 10.0%

The company has a current ratio of 1.55, a quick ratio of 1.08 and a debt-to-equity ratio of 0.27. The business has a 50 day moving average of $17.99 and a 200-day moving average of $16.52. The stock has a market cap of $1.52 billion, a PE ratio of -10.98 and a beta of 1.77.

MaxLinear (NASDAQ:MXL) last posted its quarterly earnings data on Thursday, January 29th. The semiconductor company reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.01. The firm had revenue of $136.44 million during the quarter, compared to analysts’ expectations of $134.82 million. MaxLinear had a negative return on equity of 6.84% and a negative net margin of 29.23%.The firm’s quarterly revenue was up 48.0% compared to the same quarter last year. During the same quarter last year, the business posted ($0.09) EPS. On average, analysts anticipate that MaxLinear, Inc will post -0.37 EPS for the current year.

MaxLinear declared that its Board of Directors has authorized a stock buyback plan on Monday, November 24th that allows the company to repurchase $75.00 million in shares. This repurchase authorization allows the semiconductor company to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. AIGH Capital Management LLC purchased a new stake in MaxLinear during the third quarter valued at about $17,809,000. Marshall Wace LLP lifted its stake in shares of MaxLinear by 239.0% in the 2nd quarter. Marshall Wace LLP now owns 1,385,171 shares of the semiconductor company’s stock valued at $19,683,000 after purchasing an additional 976,537 shares in the last quarter. Penserra Capital Management LLC purchased a new stake in shares of MaxLinear during the 2nd quarter worth about $9,251,000. The Manufacturers Life Insurance Company increased its position in MaxLinear by 27.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,889,111 shares of the semiconductor company’s stock worth $41,054,000 after purchasing an additional 628,719 shares in the last quarter. Finally, Vanguard Group Inc. raised its holdings in MaxLinear by 4.8% in the fourth quarter. Vanguard Group Inc. now owns 13,326,387 shares of the semiconductor company’s stock valued at $232,279,000 after buying an additional 605,903 shares during the period. Institutional investors and hedge funds own 90.79% of the company’s stock.

MaxLinear Company Profile

MaxLinear, Inc is a provider of radio-frequency (RF), analog, and mixed-signal integrated circuits for broadband communications, data center connectivity, and video infrastructure applications. The company’s product portfolio includes high-performance RF front-end modules, broadband power amplifiers, optical and Ethernet transceivers, and network processors designed to support demanding signal processing requirements.

MaxLinear’s semiconductor solutions are used by cable and satellite television operators, fiber-to-the-home service providers, network equipment manufacturers, and data center operators.