Trade-Ideas LLC identified

MaxLinear Inc A

(

MXL

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified MaxLinear Inc A as such a stock due to the following factors:

  • MXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.6 million.
  • MXL has traded 662,231 shares today.
  • MXL is trading at 6.16 times the normal volume for the stock at this time of day.
  • MXL is trading at a new high 12.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MXL:

MaxLinear, Inc. provides integrated, radio-frequency (RF) and mixed-signal circuits for broadband communication and data center, metro, and long-haul transport network applications worldwide. Currently there are 7 analysts that rate MaxLinear Inc A a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MaxLinear Inc A has been 1.3 million shares per day over the past 30 days. MaxLinear Inc A has a market cap of $1.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.07 and a short float of 15.1% with 5.08 days to cover. Shares are up 11.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MaxLinear Inc A as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • MXL's very impressive revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues leaped by 204.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • MXL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.75, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for MAXLINEAR INC is rather high; currently it is at 60.84%. Regardless of MXL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MXL's net profit margin of -8.63% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 261.7% when compared to the same quarter one year ago, falling from -$2.36 million to -$8.54 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MAXLINEAR INC's return on equity significantly trails that of both the industry average and the S&P 500.

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