Maxim Integrated Products, Inc. (MXIM)

MXIM stock forecast: buy or sell

MXIM stock outlook

  • Maxim Integrated Products stock only moved -0.58% to close at $68.69 on the stock market on Friday.
  • Price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. Up to date, shares marked a 65.2% profit since the beginning of this rally
  • On July 28, Maxim Integrated Products presented its Q2 earnings report
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Please read:
The viewpoints given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the specific positions of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for informational reasons only

MXIM stock chart overview

Should I buy Maxim Integrated Products stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is MXIM stock a buy?

Currently, Maxim Integrated Products stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for MXIM in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Maxim Integrated Products stock?

When you own stock shares with some profit, it's really difficult to decide the correct moment to sell and get your benefits. In the same way as when we have to buy shares, determining when is the best time to sell is not a random decision, and we must use our own trading strategy. When selling, as well as buying, our strategies are very simple to follow but are only valid for selling stocks in your porfolio, not for selling short MXIM stock

As a golden rule, you should not mantain an operation that generates greater losses than those expected at the time of purchase. When to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Maxim Integrated Products stock?

In the current situation of Maxim Integrated Products there is not any eligible sell setup, so Maxim Integrated Products stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Maxim Integrated Products stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 brokerage ratings were published for Maxim Integrated Products

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Maxim Integrated Products ratings

Brokerage firmRating
Jul 29th, 2020
BMO Capital Markets Neutral
Jul 29th, 2020
Stifel Nicolaus Neutral

Technical analysis

Maxim Integrated Products shares started an uptrend in mid-March, and grew a gorgeous 65.2%. The price shows higher highs and higher lows, and along the way gave some buy points for those who wanted to trade in. Latest low was in mid-June, when price bounced at $55.93. Now, the price trades in a consolidation between its last top ($73.52) and its last bottom ($55.93)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use support and resistance levels as a way to spot price points in the stock price action that may behave as obstacles, containing the price of shares to move up or down. Supports are levels where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it will probably continue declining until finding another support level. On the contrary, a resistance level is where the price may find resistance as it rises. Likewise, the price is more likely to "bounce off" at this level, and if it finally breaches this level, the price will rally easily until it finds the next resistance

The current resistance levels are:

  • R1: $69.10 (0.6% above)
  • R2: $73.52 (7.03% above)
  • The current supports are:

  • S1: $64.05 (-6.75% below)
  • S2: $63.51 (-7.54% below)
  • S3: $62.72 (-8.69% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular technical strategy created by John Bollinger. It consists of three lines that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is moving very close to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a buy signal, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 on July 21 after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Friday was 57.86. Since then, Maxim Integrated Products stock collapsed a 3.76%

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    Earnings and financials

    MXIM hosted the quarterly investors event and posted the second-quarter report on July 28. MXIM beat market estimates and presented a per-share earnings of %s of $0.58, that is a 1.75% increase versus the initial forecasts of $0.57. Reported revenues were $545.4 million versus estimates of $538.5 million.

    This compares to earnings of $0.57 per share a year ago, so posted EPS is a gain of 1.75%. Looking at sales, figures merely changed compared to $556.5M same quarter last year.

    MXIM releases Q3 financial report next October. Forecasted per-share earnings of %s for this quarter is $0.58. If you hold or you are planning to buy MXIM shares, be careful as the earnings reporting day usually has a very high volatility, and price can gap up or down with unsually low liquidity and not respecting your buy/stop-loss orders. Have a look company's website to confirm time and details about the earnings call and the earnings report.

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