Marvell Technology Group Ltd. (MRVL) Receives Consensus Recommendation of “Buy” from Analysts

Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) have been given a consensus recommendation of “Buy” by the twenty-nine brokerages that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, three have given a hold rating and twenty-four have given a buy rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $25.31.

A number of equities analysts recently weighed in on MRVL shares. TheStreet lowered shares of Marvell Technology Group from a “b” rating to a “c+” rating in a research note on Friday, October 26th. BidaskClub lowered shares of Marvell Technology Group from a “hold” rating to a “sell” rating in a research note on Saturday, October 27th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $27.00 target price on shares of Marvell Technology Group in a research note on Sunday, September 9th. Goldman Sachs Group started coverage on shares of Marvell Technology Group in a research note on Tuesday, September 18th. They issued a “buy” rating and a $23.00 target price for the company. Finally, Barclays reduced their target price on shares of Marvell Technology Group from $30.00 to $25.00 and set an “overweight” rating for the company in a research note on Tuesday, October 23rd.

Shares of MRVL traded up $0.37 during trading hours on Thursday, reaching $16.10. The stock had a trading volume of 12,061,800 shares, compared to its average volume of 9,637,760. The company has a quick ratio of 1.76, a current ratio of 2.54 and a debt-to-equity ratio of 0.25. Marvell Technology Group has a 52 week low of $15.31 and a 52 week high of $25.18. The stock has a market cap of $10.40 billion, a P/E ratio of 15.48, a P/E/G ratio of 1.89 and a beta of 1.09.

Marvell Technology Group (NASDAQ:MRVL) last announced its earnings results on Thursday, September 6th. The semiconductor company reported $0.28 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.29 by ($0.01). The company had revenue of $665.31 million during the quarter, compared to analyst estimates of $685.00 million. Marvell Technology Group had a return on equity of 10.70% and a net margin of 15.36%. Marvell Technology Group’s revenue for the quarter was up 10.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.30 earnings per share. On average, equities research analysts expect that Marvell Technology Group will post 0.86 earnings per share for the current fiscal year.

Marvell Technology Group declared that its board has approved a share buyback program on Tuesday, October 16th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the semiconductor company to repurchase up to 7.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 23rd. Stockholders of record on Tuesday, October 2nd were paid a dividend of $0.06 per share. The ex-dividend date was Monday, October 1st. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.49%. Marvell Technology Group’s dividend payout ratio is 23.08%.

In other news, CEO Matthew J. Murphy sold 10,000 shares of the stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $20.64, for a total transaction of $206,400.00. Following the completion of the transaction, the chief executive officer now directly owns 1,755 shares in the company, valued at approximately $36,223.20. The transaction was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 0.10% of the company’s stock.

Hedge funds have recently modified their holdings of the company. Nelson Van Denburg & Campbell Wealth Management Group LLC bought a new stake in shares of Marvell Technology Group in the 2nd quarter valued at about $117,000. MUFG Americas Holdings Corp bought a new stake in shares of Marvell Technology Group in the 2nd quarter valued at about $120,000. Commonwealth Bank of Australia raised its holdings in shares of 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 valued at $185,000 after purchasing an additional 8,000 shares during the period. Cerebellum GP LLC bought a new stake in shares of Marvell Technology Group in the 3rd quarter valued at about $183,000. Finally, K2 Principal Fund L.P. bought a new stake in shares of Marvell Technology Group in the 2nd quarter valued at about $207,000. 83.59% of the stock is currently owned by institutional investors.

Marvell Technology Group Company Profile

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.

Further Reading: How to interpret a stock’s beta number

Analyst Recommendations for Marvell Technology Group (NASDAQ:MRVL)

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