Hedge Funds Flop On Athersys, Console Themselves With Soaring MaxLinear

In the case of MaxLinear, Inc. (NYSE:MXL), hedge funds were all over the stock in the second quarter, and are now being rewarded with big gains. Like Athersys, MaxLinear started making its own break to the high side yesterday, gaining over 16% after it announced that it had raised its revenue guidance for the third quarter to $95 million, from a previous range of $90 million-to-$94 million. The provider of integrated and radio frequency circuits also provided updated guidance for its operating expenses that came in slightly below previous guidance.

MaxLinear, Inc. (NYSE:MXL)’s momentum from yesterday has continued into today, with shares up by another 7%, additionally fueled by an upgrade from Needham & Company on the stock to ‘Buy’ from ‘Hold’ this morning, along with a $16 price target, suggesting further upside potential of nearly 25%. Analyst N. Quinn Bolton commented that while the firm was not raising its 2016 earnings estimates for MaxLinear, that they nonetheless reflect conservative assumptions which leave room to the upside.

Investing icon George Soros was among those raising their stakes in MaxLinear during the second quarter. Soros held 2.60 million shares as of June 30, up by 240% during the quarter. Likewise, William C. Martin’s Raging Capital amassed a 2.33 million-share stake in the second quarter, up by 2,013%. Overall, 23 investors we track held long positions in MaxLinear on June 30, up from 16 on March 31, while the value of their positions surged to over $157 million from just under $31 million, giving them a 33.9% stake in the company.

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