Marvell Technology Group (NASDAQ:MRVL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Marvell's Q4 results were hurt by lower-than-expected performance in the networking and storage businesses. Low demand for storage controllers due to fall in cloud capital spending and CPU shortages, hurt Marvell’s top-line. Tight inventory control by customers due to demand shift from product consigned to vendor-managed inventory arrangements is also a concern. Moreover, the companydepends 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. However, Marvell’s WiFi business is expected to start boosting next-generation products built on the latest WiFi 6 standard, leading its WiFi business to return to growth from the second quarter of fiscal 2020.”
Several other research firms have also commented on MRVL. Benchmark dropped their price objective on shares of Marvell Technology Group to $30.00 in a research note on Sunday, December 2nd. Craig Hallum dropped their price objective on shares of Marvell Technology Group from $34.00 to $22.00 and set a “buy” rating for the company in a research note on Thursday, December 6th. Needham & Company LLC reaffirmed a “buy” rating and set a $25.00 price objective (down from $27.00) on shares of Marvell Technology Group in a research note on Wednesday, December 5th. Credit Suisse Group reaffirmed a “buy” rating and set a $30.00 price objective on shares of Marvell Technology Group in a research note on Monday, December 3rd. Finally, Deutsche Bank dropped their price objective on shares of Marvell Technology Group from $25.00 to $22.00 and set a “buy” rating for the company in a research note on Monday, December 3rd. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and sixteen have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $24.71.
MRVL stock opened at $19.41 on Wednesday. Marvell Technology Group has a fifty-two week low of $14.34 and a fifty-two week high of $23.77. The company has a quick ratio of 1.74, a current ratio of 2.32 and a debt-to-equity ratio of 0.24. The firm has a market capitalization of $12.94 billion, a P/E ratio of 22.84, a price-to-earnings-growth ratio of 3.61 and a beta of 1.01.
Marvell Technology Group (NASDAQ:MRVL) last posted its earnings results on Thursday, March 7th. The semiconductor company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.02). Marvell Technology Group had a negative net margin of 6.25% and a positive return on equity of 8.19%. The business had revenue of $744.80 million during the quarter, compared to analysts’ expectations of $739.88 million. During the same period last year, the business posted $0.32 earnings per share. Analysts predict that Marvell Technology Group will post 0.78 earnings per share for the current year.
In other news, Director Syed Ali sold 442,000 shares of Marvell Technology Group stock in a transaction on Friday, January 11th. The stock was sold at an average price of $17.14, for a total transaction of $7,575,880.00. Following the completion of the sale, the director now directly owns 4,950,515 shares in the company, valued at $84,851,827.10. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Michael G. Strachan bought 10,000 shares of the firm’s stock in a transaction dated Thursday, December 20th. The shares were acquired at an average price of $14.85 per share, with a total value of $148,500.00. Following the completion of the transaction, the director now owns 32,338 shares of the company’s stock, valued at approximately $480,219.30. The disclosure for this purchase can be found here. 0.10% of the stock is currently owned by company insiders.
Several large investors have recently added to or reduced their stakes in the company. American Century Companies Inc. raised its holdings in shares of Marvell Technology Group by 14.7% in the fourth quarter. American Century Companies Inc. now owns 3,923,801 shares of the semiconductor company’s stock valued at $63,526,000 after acquiring an additional 503,917 shares in the last quarter. Norges Bank bought a new stake in shares of Marvell Technology Group in the fourth quarter valued at about $90,449,000. FMR LLC raised its holdings in shares of Marvell Technology Group by 48.1% in the fourth quarter. FMR LLC now owns 80,824,523 shares of the semiconductor company’s stock valued at $1,308,549,000 after acquiring an additional 26,251,979 shares in the last quarter. Nordea Investment Management AB raised its holdings in shares of Marvell Technology Group by 4.5% in the fourth quarter. Nordea Investment Management AB now owns 615,716 shares of the semiconductor company’s stock valued at $9,969,000 after acquiring an additional 26,434 shares in the last quarter. Finally, Pathlight Investors LLC bought a new stake in shares of Marvell Technology Group in the fourth quarter valued at about $219,000. Institutional investors and hedge funds own 96.18% of the company’s stock.
About Marvell Technology Group
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as HDD components, such as HDD preamps components; and develops software-enabled silicon solutions comprising serial advanced technology attachment port multipliers, bridges, serial attached SCSI, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses.
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