Rosenblatt Securities reaffirmed their buy rating on shares of Marvell Technology Group (NASDAQ:MRVL) in a report released on Thursday morning. They currently have a $26.00 price objective on the semiconductor company’s stock.
“We caught up with Marvell management at CES. Key Takeaways The storage pause (HDDs and SSDs), continues to be viewed as a 2 -quarter dynamic driven by macro economy factors, x86 CPU shortages at Intel (INTC: Sell), and deceler- ating CapEx spend in the data center markets. Management’s bullish stance mid to longer term is based on key storage wins at major hyperscale players in both HDD and SSD areas, HDD pre-amp share gains, and visibility for more wins in high capacity enterprise storage products. Marvell reiterated the notion that its biggest growth driver in the next few years is 5G base-stations due to dollar content expansion to nearly $3K per box from ~$700 per box in 4G.”,” the firm’s analyst commented.
Several other research firms have also commented on MRVL. BidaskClub upgraded shares of Marvell Technology Group from a strong sell rating to a sell rating in a research report on Saturday, September 29th. Citigroup cut their target price on shares of 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. Goldman Sachs Group set a $23.00 target price on shares of Marvell Technology Group and gave the company a buy rating in a research note on Wednesday, October 17th. B. Riley cut their target price on shares of Marvell Technology Group from $30.00 to $26.00 and set a buy rating for the company in a research note on Wednesday, October 10th. Finally, BMO Capital Markets raised shares of Marvell Technology Group from a market perform rating to an outperform rating and set a $24.00 target price for the company in a research note on Monday, October 15th. One analyst has rated the stock with a sell rating, three have given a hold rating and seventeen have assigned a buy rating to the stock. The company has an average rating of Buy and an average price target of $24.76.
Marvell Technology Group (NASDAQ:MRVL) last released its quarterly earnings data on Tuesday, December 4th. The semiconductor company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.32 by $0.01. Marvell Technology Group had a net margin of 4.76% and a return on equity of 9.45%. The business had revenue of $851.05 million for the quarter, compared to analyst estimates of $844.07 million. During the same period in the previous year, the firm earned $0.34 EPS. The business’s revenue for the quarter was up 38.1% compared to the same quarter last year. Analysts forecast that Marvell Technology Group will post 0.93 EPS for the current fiscal year.
Marvell Technology Group declared that its board has approved a share buyback plan on Tuesday, October 16th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the semiconductor company to reacquire up to 7.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its stock is undervalued.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 15th. Investors of record on Wednesday, December 26th will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 1.38%. The ex-dividend date is Monday, December 24th. Marvell Technology Group’s payout ratio is 23.08%.
In other Marvell Technology Group news, CFO Jean X. Hu bought 15,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 26th. The stock was purchased at an average price of $14.67 per share, with a total value of $220,050.00. Following the transaction, the chief financial officer now owns 51,077 shares in the company, valued at $749,299.59. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Michael G. Strachan bought 10,000 shares of the company’s stock in a transaction that occurred on Thursday, December 20th. The shares were acquired at an average cost of $14.85 per share, with a total value of $148,500.00. Following the transaction, the director now owns 32,338 shares in the company, valued at approximately $480,219.30. The disclosure for this purchase can be found here. Corporate insiders own 0.10% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of MRVL. Janus Henderson Group PLC increased its position in Marvell Technology Group by 149.5% during the 2nd quarter. Janus Henderson Group PLC now owns 565,950 shares of the semiconductor company’s stock worth $12,134,000 after purchasing an additional 339,090 shares in the last quarter. FMR LLC boosted its holdings in Marvell Technology Group by 5.1% in the 2nd quarter. FMR LLC now owns 55,789,566 shares of the semiconductor company’s stock worth $1,196,128,000 after acquiring an additional 2,685,377 shares during the period. Envestnet Asset Management Inc. boosted its holdings in Marvell Technology Group by 28.5% in the 2nd quarter. Envestnet Asset Management Inc. now owns 64,991 shares of the semiconductor company’s stock worth $1,393,000 after acquiring an additional 14,420 shares during the period. Commonwealth Bank of Australia boosted its holdings in Marvell Technology Group by 1,142.9% in the 2nd quarter. Commonwealth Bank of Australia now owns 8,700 shares of the semiconductor company’s stock worth $185,000 after acquiring an additional 8,000 shares during the period. Finally, Raymond James & Associates boosted its holdings in Marvell Technology Group by 1.8% in the 2nd quarter. Raymond James & Associates now owns 274,508 shares of the semiconductor company’s stock worth $5,885,000 after acquiring an additional 4,975 shares during the period. 95.22% of the stock is owned by hedge funds and other institutional investors.
About Marvell Technology Group
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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