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MaxLinear Inc . (NASDAQ:MXL) Director Ted L. Tewksbury III reported the sale of 5,800 shares of common stock, according to a recent SEC filing. The shares were sold at an average price of $15.36, with the total transaction amounting to $89,110. Following this sale, Tewksbury holds 69,717 shares in the company. The transaction was executed on November 21, 2024. Notably, the shares sold were part of a range priced between $15.36 and $15.39.
In other recent news, MaxLinear Inc. has reported an increase in revenue for Q3 2024, reaching $81.1 million with a non-GAAP gross margin of 58.7%. The company anticipates growth opportunities in 2025, driven by high-speed optical interconnects, wireless infrastructure, and Ethernet solutions. In addition, MaxLinear has announced the upcoming departure of its Vice President and General Manager of the Broadband Group, William G. Torgerson, with an internal transition planned.
On the analyst front, a Craig-Hallum analyst has revised the stock price target for MaxLinear, reducing it to $25.00 from the previous $28.00, while maintaining a Buy rating. The analyst expressed confidence in the company's future performance, expecting a C25 earnings per share (EPS) exit run-rate close to $1.00.
MaxLinear is also focusing on reducing operating expenses by up to 25% next year and has formed new partnerships, including with AMD (NASDAQ:AMD), while introducing the Max AI framework. The company's Q4 2024 revenue is forecasted to be between $80 million and $100 million, with a GAAP gross margin expected to be between 54% and 57% and non-GAAP gross margin between 57.5% and 60.5%. These recent developments showcase MaxLinear's strategic initiatives to navigate a complex market while capitalizing on emerging opportunities.
InvestingPro Insights
MaxLinear Inc. (NASDAQ:MXL) has recently experienced significant market movements, as reflected in the InvestingPro data. The company's stock has shown a strong return over the last three months, with a 24.37% price total return. This positive trend is further emphasized by a notable 12.79% return in just the past week, indicating renewed investor interest.
Despite these short-term gains, MaxLinear faces some challenges. According to InvestingPro Tips, analysts anticipate a sales decline in the current year, which aligns with the reported -54.14% revenue growth over the last twelve months. This decline in revenue may be a factor contributing to the company's current unprofitability, as highlighted by the negative operating income of -$160.71 million in the same period.
The company's financial health presents a mixed picture. While MaxLinear operates with a moderate level of debt and its liquid assets exceed short-term obligations, it does not pay a dividend to shareholders. This could be a strategic decision given the current financial performance, as the company focuses on navigating through a challenging period.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 5 more tips available for MaxLinear. These tips could provide valuable context for understanding the company's position in the semiconductor industry and its future prospects.
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