Zacks Investment Research Lowers Marvell Technology Group (NASDAQ:MRVL) to Sell
Zacks Investment Research cut shares of Marvell Technology Group (NASDAQ:MRVL) from a hold rating to a sell rating in a research report released on Thursday, Zacks.com reports. Zacks Investment Research currently has $29.00 target price on the semiconductor company’s stock.
According to Zacks, “Marvell is benefiting from strong growth in networking business. The company also recently announced the acquisitions of Avera and Aquantia, which will be highly complementary to its already strong Ethernet and PHY businesses. Further, Marvell announced the divestment of its Wi-Fi business to NXP Semiconductors, which will help it focus on its other high growth areas. However, increasing operational expenses, and weakness in compute demand in cloud, are headwinds. Moreover, export restriction and CPU shortages are expected to keep storage revenues under pressure. Further, the company depends on some big customers for a substantial portion of its net revenues, exposing it to customer concentration risk. Shares have underperformed the industry year to date.”
MRVL has been the subject of several other research reports. B. Riley set a $18.00 price target on TiVo and gave the stock a buy rating in a research report on Friday, May 31st. UBS Group raised their price objective on W. R. Berkley from $53.00 to $56.00 and gave the stock a sell rating in a report on Wednesday, April 24th. BidaskClub upgraded WhiteHorse Finance from a sell rating to a hold rating in a report on Thursday, July 18th. TheStreet upgraded Marvell Technology Group from a c+ rating to a b- rating in a report on Wednesday, July 3rd. Finally, Bank of America restated a buy rating and set a C$10.00 price objective on shares of Hexo in a report on Wednesday, April 17th. One analyst has rated the stock with a sell rating, five have issued a hold rating, seventeen have assigned a buy rating and two have assigned a strong buy rating to the company. The company presently has a consensus rating of Buy and an average target price of $26.25.
Marvell Technology Group (NASDAQ:MRVL) last released its quarterly earnings results on Thursday, May 30th. The semiconductor company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.02. The company had revenue of $662.00 million during the quarter, compared to the consensus estimate of $651.07 million. Marvell Technology Group had a positive return on equity of 5.88% and a negative net margin of 12.18%. Marvell Technology Group’s revenue was up 9.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.32 earnings per share. Sell-side analysts expect that Marvell Technology Group will post 0.43 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 31st. Shareholders of record on Friday, July 12th will be paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.88%. The ex-dividend date is Thursday, July 11th. Marvell Technology Group’s dividend payout ratio is presently 28.24%.
In other Marvell Technology Group news, CAO Willem A. Meintjes sold 28,057 shares of the business’s stock in a transaction dated Tuesday, June 18th. The stock was sold at an average price of $24.32, for a total transaction of $682,346.24. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Matthew J. Murphy sold 265,000 shares of the business’s stock in a transaction dated Wednesday, July 17th. The stock was sold at an average price of $26.02, for a total value of $6,895,300.00. Following the transaction, the chief executive officer now owns 1,755 shares in the company, valued at approximately $45,665.10. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 323,057 shares of company stock worth $8,299,646. 1.10% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in MRVL. Advisor Group Inc. increased its position in shares of Marvell Technology Group by 19.7% during the fourth quarter. Advisor Group Inc. now owns 16,092 shares of the semiconductor company’s stock worth $261,000 after acquiring an additional 2,648 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Marvell Technology Group by 2.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,720,199 shares of the semiconductor company’s stock valued at $76,403,000 after buying an additional 128,943 shares during the last quarter. Geode Capital Management LLC increased its holdings in Marvell Technology Group by 6.4% in the fourth quarter. Geode Capital Management LLC now owns 5,974,001 shares of the semiconductor company’s stock valued at $96,654,000 after buying an additional 360,969 shares during the last quarter. Legal & General Group Plc increased its holdings in Marvell Technology Group by 14.3% in the fourth quarter. Legal & General Group Plc now owns 2,988,261 shares of the semiconductor company’s stock valued at $48,287,000 after buying an additional 373,837 shares during the last quarter. Finally, Amalgamated Bank increased its holdings in Marvell Technology Group by 13.5% in the fourth quarter. Amalgamated Bank now owns 108,650 shares of the semiconductor company’s stock valued at $1,759,000 after buying an additional 12,956 shares during the last quarter.
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 preamplifiers; supports a variety of host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, and non-volatile memory express; and develops software-enabled silicon solutions comprising SATA port multipliers, bridges, SATA, SAS, 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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