Zacks Investment Research Downgrades Marvell Technology Group (MRVL) to Hold

Marvell Technology Group (NASDAQ:MRVL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Monday.

According to Zacks, “Marvell is benefiting from strong growth in networking and storage business. Management is optimistic about three new storage architecture solutions that the company released. Moreover, several storage controller design wins are positives. Also, we believe that the strong demand for Marvell’s 4G LTE products could be a growth driver. Additionally, its buyout of Cavium is expected to broaden its offerings beyond hard disk drives microprocessors and help it enter into high growth areas such as data centers and wireless communications. Nonetheless, storage revenues are anticipated to remain weak due to headwinds like weakness in the PC market, CPU shortages, U.S.-China trade issues, moderating cloud CapEx and growing inventory at client companies. Moreover, it depends on some big customers for a substantial portion of its net revenues, exposing it to  customer concentration risk. Shares underperformed the industry in the past year.”

Several other brokerages also recently issued reports on MRVL. Craig Hallum downgraded Marvell Technology Group from a “buy” rating to a “hold” rating in a research report on Thursday. Goldman Sachs Group set a $23.00 price objective on Marvell Technology Group and gave the stock a “buy” rating in a research report on Wednesday, October 17th. BidaskClub upgraded Marvell Technology Group from a “sell” rating to a “hold” rating in a research report on Tuesday, January 29th. BMO Capital Markets upgraded Marvell Technology Group from a “market perform” rating to an “outperform” rating and set a $24.00 price objective for the company in a research report on Monday, October 15th. Finally, Needham & Company LLC restated a “buy” rating and issued a $25.00 target price on shares of Marvell Technology Group in a research report on Monday, January 14th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and fifteen have issued a buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $24.86.

Shares of NASDAQ MRVL traded up $0.47 during midday trading on Monday, hitting $18.86. 348,286 shares of the company’s stock were exchanged, compared to its average volume of 12,002,641. The company has a current ratio of 2.32, a quick ratio of 1.74 and a debt-to-equity ratio of 0.24. The company has a market cap of $12.09 billion, a PE ratio of 18.17, a P/E/G ratio of 1.70 and a beta of 0.98. Marvell Technology Group has a twelve month low of $14.34 and a twelve month high of $25.18.

Marvell Technology Group (NASDAQ:MRVL) last issued its quarterly earnings data on Tuesday, December 4th. The semiconductor company reported $0.33 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.32 by $0.01. The business had revenue of $851.05 million during the quarter, compared to the consensus estimate of $844.07 million. Marvell Technology Group had a return on equity of 9.45% and a net margin of 4.76%. The business’s revenue was up 38.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.34 earnings per share. Sell-side analysts forecast that Marvell Technology Group will post 0.89 earnings per share for the current fiscal year.

Marvell Technology Group declared that its board has initiated a stock buyback plan on Tuesday, October 16th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to reacquire up to 7.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

In other Marvell Technology Group news, Director Syed Ali sold 442,000 shares of the company’s stock in a transaction on Friday, January 11th. The stock was sold at an average price of $17.14, for a total value of $7,575,880.00. Following the transaction, the director now owns 4,950,515 shares of the company’s stock, valued at $84,851,827.10. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Jean X. Hu purchased 15,000 shares of the company’s stock in a transaction on Wednesday, December 26th. The stock was bought at an average cost of $14.67 per share, for a total transaction of $220,050.00. Following the acquisition, the chief financial officer now directly owns 51,077 shares of the company’s stock, valued at approximately $749,299.59. The disclosure for this purchase can be found here. 0.10% of the stock is currently owned by corporate insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Loeb Partners Corp acquired a new stake in Marvell Technology Group during the 4th quarter valued at $44,000. Sterling Investment Advisors Ltd. raised its stake in Marvell Technology Group by 100.0% during the 4th quarter. Sterling Investment Advisors Ltd. now owns 6,000 shares of the semiconductor company’s stock valued at $97,000 after purchasing an additional 3,000 shares during the period. Penserra Capital Management LLC raised its stake in Marvell Technology Group by 580.7% during the 4th quarter. Penserra Capital Management LLC now owns 6,126 shares of the semiconductor company’s stock valued at $98,000 after purchasing an additional 5,226 shares during the period. FUKOKU MUTUAL LIFE INSURANCE Co raised its stake in Marvell Technology Group by 71.8% during the 4th quarter. FUKOKU MUTUAL LIFE INSURANCE Co now owns 6,700 shares of the semiconductor company’s stock valued at $108,000 after purchasing an additional 2,800 shares during the period. Finally, Oregon Public Employees Retirement Fund acquired a new stake in Marvell Technology Group during the 4th quarter valued at $109,000. 95.29% of the stock is currently owned by institutional investors.

Marvell Technology Group Company Profile

Marvell Technology Group Ltd. engages in the business of providing semiconductors to high-performance application-specific standard products. It focuses on the development of complex System-on-a-Chip devices leveraging extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and stand alone integrated circuits.

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