Zacks Investment Research upgraded shares of Maxim Integrated Products (NASDAQ:MXIM) from a sell rating to a hold rating in a research note released on Thursday.
According to Zacks, “Maxim’s solid momentum across the automotive market remains a major positive. Further, the company remains optimistic about its flexible manufacturing strategy which is expected to aid margin expansion. Notably, the stock has outperformed the industry it belongs to over a year. However, Maxim's high dependence on Samsung is a risk to its growth trajectory. Also, the company is suffering from sluggish bookings and weakening momentum across its customers. These are affecting the company’s position in the industrial market. Further, it is experiencing seasonal fluctuations in the consumer market which remains an overhang. Also, slowing shipment of 100G optical module is likely to impact the company’s performance in data center market.”
A number of other equities research analysts have also issued reports on MXIM. Goldman Sachs Group lowered Maxim Integrated Products from a neutral rating to a sell rating in a research report on Thursday, October 18th. BidaskClub raised Maxim Integrated Products from a sell rating to a hold rating in a research report on Friday, November 23rd. Barclays cut their target price on Maxim Integrated Products from $60.00 to $55.00 and set an equal weight rating on the stock in a research report on Tuesday, October 23rd. Citigroup cut their target price on Maxim Integrated Products from $61.00 to $50.00 and set a hold rating on the stock in a research report on Wednesday, October 31st. Finally, Morgan Stanley cut their target price on Maxim Integrated Products from $54.00 to $53.00 and set an equal weight rating on the stock in a research report on Wednesday, December 19th. One analyst has rated the stock with a sell rating, sixteen have given a hold rating and five have assigned a buy rating to the stock. Maxim Integrated Products currently has a consensus rating of Hold and a consensus price target of $60.71.
Maxim Integrated Products (NASDAQ:MXIM) last posted its quarterly earnings results on Tuesday, October 30th. The semiconductor company reported $0.75 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.75. The company had revenue of $638.50 million for the quarter, compared to analyst estimates of $635.19 million. Maxim Integrated Products had a return on equity of 41.83% and a net margin of 20.06%. Maxim Integrated Products’s revenue for the quarter was up 10.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.60 EPS. On average, analysts expect that Maxim Integrated Products will post 2.69 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, December 13th. Stockholders of record on Thursday, November 29th were given a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a dividend yield of 3.48%. The ex-dividend date of this dividend was Wednesday, November 28th. Maxim Integrated Products’s dividend payout ratio (DPR) is presently 67.90%.
In related news, Director James R. Bergman sold 4,400 shares of the firm’s stock in a transaction that occurred on Friday, November 16th. The stock was sold at an average price of $53.24, for a total transaction of $234,256.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP Sumeet Gagneja sold 517 shares of the firm’s stock in a transaction that occurred on Monday, December 3rd. The stock was sold at an average price of $56.72, for a total value of $29,324.24. The disclosure for this sale can be found here. Insiders have sold a total of 43,671 shares of company stock worth $2,448,005 in the last three months. Corporate insiders own 0.85% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc grew its stake in Maxim Integrated Products by 0.5% during the 3rd quarter. Vanguard Group Inc now owns 28,025,275 shares of the semiconductor company’s stock worth $1,580,346,000 after buying an additional 150,909 shares during the last quarter. BlackRock Inc. grew its stake in Maxim Integrated Products by 4.7% during the 3rd quarter. BlackRock Inc. now owns 24,164,756 shares of the semiconductor company’s stock worth $1,362,651,000 after buying an additional 1,077,289 shares during the last quarter. Bank of New York Mellon Corp grew its stake in Maxim Integrated Products by 897,788.1% during the 3rd quarter. Bank of New York Mellon Corp now owns 10,191,030 shares of the semiconductor company’s stock worth $574,673,000 after buying an additional 10,189,895 shares during the last quarter. Wells Fargo & Company MN grew its stake in Maxim Integrated Products by 1.3% during the 3rd quarter. Wells Fargo & Company MN now owns 6,988,853 shares of the semiconductor company’s stock worth $394,102,000 after buying an additional 89,834 shares during the last quarter. Finally, AQR Capital Management LLC grew its stake in Maxim Integrated Products by 74.6% during the 3rd quarter. AQR Capital Management LLC now owns 2,669,658 shares of the semiconductor company’s stock worth $150,542,000 after buying an additional 1,140,996 shares during the last quarter. Hedge funds and other institutional investors own 91.77% of the company’s stock.
About Maxim Integrated Products
Maxim Integrated Products, Inc designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, the rest of Asia, Europe, and internationally. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs.
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