MaxLinear (NASDAQ:MXL) to Repurchase $75.00 million in Outstanding Shares

MaxLinear (NASDAQ:MXL) announced a $75 million share repurchase plan, authorized by its Board of Directors. This plan allows the semiconductor company to buy back up to 5.8% of its shares, indicating the board's belief that the shares are undervalued. The announcement follows mixed analyst ratings, with a consensus rating of 'Hold' and a price target of $19.94. Recent insider sales have decreased ownership stakes, and the company reported a quarterly revenue increase of 56% year-over-year.

MaxLinear (NASDAQ:MXL - Get Free Report) announced that its board has authorized a share repurchase program on Monday, November 24th, RTT News reports. The company plans to buyback $75.00 million in outstanding shares. This buyback authorization authorizes the semiconductor company to buy up to 5.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Silicon Motion: The Market's Best Merger Arbitrage Opportunity

Several brokerages have recently weighed in on MXL. Zacks Research cut MaxLinear from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 22nd. Benchmark reissued a "buy" rating and issued a $25.00 price objective on shares of MaxLinear in a research note on Friday, October 24th. Wall Street Zen raised shares of MaxLinear from a "hold" rating to a "buy" rating in a research note on Saturday, September 20th. Weiss Ratings reissued a "sell (d-)" rating on shares of MaxLinear in a research report on Wednesday, October 8th. Finally, Loop Capital restated a "hold" rating and issued a $15.00 target price (up previously from $10.00) on shares of MaxLinear in a report on Monday, August 4th. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $19.94.

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MaxLinear Stock Performance

2 M&A Deals Trading at Wide Spreads: A Game of Regulatory Risk

Shares of MaxLinear stock traded up $1.19 on Monday, reaching $14.79. 1,524,681 shares of the company traded hands, compared to its average volume of 1,523,113. The company has a 50 day moving average of $15.64 and a 200 day moving average of $14.79. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.55 and a quick ratio of 1.08. MaxLinear has a 52 week low of $8.35 and a 52 week high of $25.73. The firm has a market capitalization of $1.29 billion, a PE ratio of -7.08 and a beta of 1.83.

MaxLinear (NASDAQ:MXL - Get Free Report) last announced its quarterly earnings data on Thursday, October 23rd. The semiconductor company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.02. The company had revenue of $126.46 million during the quarter, compared to analyst estimates of $124.66 million. MaxLinear had a negative return on equity of 12.74% and a negative net margin of 42.43%.The firm's revenue for the quarter was up 56.0% on a year-over-year basis. During the same quarter last year, the firm posted ($0.36) EPS. MaxLinear has set its Q4 2025 guidance at EPS. Equities analysts forecast that MaxLinear will post -0.37 earnings per share for the current year.

Insider Activity

MaxLinear Stock is a Worthy Chip Play

In other MaxLinear news, Director Daniel A. Artusi sold 20,747 shares of the company's stock in a transaction on Thursday, October 30th. The shares were sold at an average price of $15.39, for a total value of $319,296.33. Following the completion of the transaction, the director directly owned 12,141 shares in the company, valued at approximately $186,849.99. This represents a 63.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Steven G. Litchfield sold 102,157 shares of the company's stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $17.28, for a total transaction of $1,765,272.96. Following the completion of the sale, the insider directly owned 312,203 shares in the company, valued at $5,394,867.84. This represents a 24.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 131,959 shares of company stock valued at $2,228,272. Insiders own 7.80% of the company's stock.

MaxLinear Company Profile

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MaxLinear, Inc provides communications systems-on-chip solutions worldwide. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management.

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