Marvell Technology Group (MRVL) Stock Rating Reaffirmed by Needham & Company LLC
Needham & Company LLC reaffirmed their buy rating on shares of Marvell Technology Group (NASDAQ:MRVL) in a research note published on Wednesday morning, MarketBeat Ratings reports. The brokerage currently has a $25.00 target price on the semiconductor company’s stock, down from their previous target price of $27.00.
“MRVL reported in-line results for the combined company’s first full quarter. Storage revenue was in line with expectations while Networking was better than expected, driven by MRVL’s switch/PHY products and OCTEON processors. However, F4Q19 guidance fell below expectations due to a weak outlook for Storage and WiFi, partially mitigated by LSD Q/Q growth in Networking. MRVL expects Storage to remain soft for several quarters as customers work through excess inventory. While we remain buyers of MRVL given its attractive valuation and growth opportunities in the Infrastructure markets, we are lowering our estimates and PT to $25, which is 15x our CY20 NG EPS estimate, to reflect the near term softness in the Storage business.”,” the firm’s analyst wrote.
MRVL has been the subject of a number of other reports. Citigroup dropped their price target on Marvell Technology Group from $23.00 to $20.00 and set a neutral rating for the company in a research note on Friday, September 14th. BidaskClub lowered Marvell Technology Group from a hold rating to a sell rating in a research note on Saturday, October 27th. Cowen dropped their price target on Marvell Technology Group from $29.00 to $26.00 and set an outperform rating for the company in a research note on Monday, August 27th. TheStreet lowered Marvell Technology Group from a b rating to a c+ rating in a research note on Friday, October 26th. Finally, Zacks Investment Research reissued a buy rating and set a $19.00 price target on shares of Marvell Technology Group in a research note on Wednesday, November 14th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and seventeen have given a buy rating to the stock. The company presently has an average rating of Buy and a consensus price target of $24.44.
Marvell Technology Group (NASDAQ:MRVL) last released its quarterly earnings data on Tuesday, December 4th. The semiconductor company reported $0.33 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.01. The firm had revenue of $851.05 million during the quarter, compared to analyst estimates of $844.07 million. Marvell Technology Group had a return on equity of 10.43% and a net margin of 4.76%. The business’s quarterly revenue was up 38.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.34 earnings per share. Equities research analysts predict that Marvell Technology Group will post 0.86 earnings per share for the current fiscal year.
Marvell Technology Group announced that its Board of Directors has initiated a share repurchase plan on Tuesday, October 16th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 7.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.
A number of hedge funds have recently modified their holdings of the business. Nelson Van Denburg & Campbell Wealth Management Group LLC purchased a new stake in shares of Marvell Technology Group in the second quarter worth approximately $117,000. MUFG Americas Holdings Corp purchased a new stake in shares of Marvell Technology Group in the second quarter worth approximately $120,000. Commonwealth Bank of Australia raised its holdings in shares of Marvell Technology Group by 1,142.9% in the second quarter. Commonwealth Bank of Australia now owns 8,700 shares of the semiconductor company’s stock worth $185,000 after buying an additional 8,000 shares during the period. Cerebellum GP LLC purchased a new stake in shares of Marvell Technology Group in the third quarter worth approximately $183,000. Finally, K2 Principal Fund L.P. purchased a new stake in shares of Marvell Technology Group in the second quarter worth approximately $207,000. Institutional investors and hedge funds own 95.31% 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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