Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

How Exar Corp. Stock Rose 24% in March

By Anders Bylund - Apr 4, 2017 at 7:11PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A pending merger with sector rival MaxLinear provided plenty of rocket fuel for this overnight surge.

What happened

Shares of Exar ( EXAR ) gained 24.4% in March 2017, according to data from S&P Global Market Intelligence.

So what

As March drew to a close, Exar received a firm buyout offer from rival semiconductor designer MaxLinear ( MXL -1.87% ). The stock immediately surged 22% higher on the news, and is now trading right in line with MaxLinear's final all-cash offer of $13 per share.

Circuit board packed with computer chips.

Image source: Getty Images.

Now what

The two mixed-signal chip designers look like a strong match. When the deal closes, Exar's product line will gain economies of scale from MaxLinear's larger market presence. The acquirer picks up instant exposure to Exar's core markets, which are power management and interface solutions. MaxLinear investors will appreciate that the Exar combination is expected to boost the bottom line from day one. Exar investors should probably take their assets off the table and invest elsewhere, because the stock is not likely to make any further moves.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Exar Corporation Stock Quote
Exar Corporation
MaxLinear, Inc. Stock Quote
MaxLinear, Inc.
$67.22 (-1.87%) $-1.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.