Is MaxLinear, Inc. (MXL) A Good Stock To Buy?

Due to the fact that MaxLinear, Inc. (NYSE:MXL) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of hedgies who sold off their full holdings in the third quarter. At the top of the heap, Principal Global Investors’ Columbus Circle Investors dumped the largest position of all the hedgies tracked by Insider Monkey, worth about $17.8 million in stock. Richard Driehaus’ fund, Driehaus Capital, also cut its stock, about $7.9 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to MaxLinear, Inc. (NYSE:MXL). We will take a look at China Lodging Group, Ltd (ADR) (NASDAQ:HTHT), HudBay Minerals Inc Ord Shs (NYSE:HBM), Emergent Biosolutions Inc (NYSE:EBS), and 8Point3 Energy Partners LP (NASDAQ:CAFD). This group of stocks’ market caps are similar to MXL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HTHT 16 118561 1
HBM 9 88043 -3
EBS 14 135032 -3
CAFD 12 47538 4

As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $97 million. That figure was $170 million in MXL’s case. China Lodging Group, Ltd (ADR) (NASDAQ:HTHT) is the most popular stock in this table. On the other hand HudBay Minerals Inc Ord Shs (NYSE:HBM) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks MaxLinear, Inc. (NYSE:MXL) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None