Marvell Technology Group Ltd. (NASDAQ: MRVL) Not A Good Play Anymore?


    T. Rowe Price Associates, Inc. (I.. has recently announced that it has increased stake in Marvell Technology Group Ltd. (NASDAQ:MRVL) by 7.04%. After grabbing 94.13 million shares, the institutional investor is now in possession of 6.19 million shares of the Technology Company. The new investment brought the stake of investor firm to 14.15% having worth around $3.43 billion. Moreover, Wellington Management Co. LLP increased its share by 3.73 million to have a control over 40.58 million shares. And BlackRock Investment Management (.. raised its holdings to 0.7 million shares by acquiring 7.82 million shares or 1.18% of the stake.

    Marvell Technology Group Ltd. (MRVL) concluded trading on 08/26/20 at a closing price of $35.61, with 6.53 million shares of worth about $232.39 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 7.55% during that period and on Wednesday the price saw a gain of about 1.14%. Currently the company’s common shares owned by public are about 663.55M shares, out of which, 659.12M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 27 analysts are covering the MRVL stock and their offered price forecasts bring an average price target of $37.65. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $50.00 and could fall to a lowest price of $18.00. Analysts also issued an outlook of 2.00 for the Marvell Technology Group Ltd. stock for next 12 months. The stock’s current price level is 4.45% above of average price target set by the analysts, while a rise to estimated low would result in loss of -97.83 for the stock. However, touching the estimated high of $50.00 would mean a gain of 28.78% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 258 times over the past 12 months. They bought 1,182,433 shares in 119 of the transactions. In 139 selling transactions, insiders dumped 1,167,291 shares.

    Fidelity Blue Chip Growth Fund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund are the top 3 mutual funds which are holding stakes in Marvell Technology Group Ltd. Fidelity Blue Chip Growth Fund is currently holding 26.33 million shares of worth totaling $960.32 million. The company recently came selling -1.63 million shares which brought its stake up to 3.96% of the company’s outstanding shares. Vanguard Total Stock Market Index sold 69518.0 shares, after which its hold over company’s outstanding shares shrunk to 2.83%, leaving 18.84 million shares with the mutual fund that have a worth of about $687.14 million. Vanguard Mid Cap Index Fund, after selling 16.27 million shares, have now control over 2.45% of the stake in the company. It holds -0.12 million shares of worth $593.53 million.

    Marvell Technology Group Ltd. (NASDAQ: MRVL) started trading at $35.47, above $0.26 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $35.61, or with a gain of 1.14%. Stock saw a price change of 7.55% in past 5 days and over the past one month there was a price change of 1.80%. Year-to-date (YTD), MRVL shares are showing a performance of 34.07% which increased to 51.47% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $16.45 but also hit the highest price of $39.40 during that period. While comparing its average daily trading volume of 8.62 million shares, we see that about 6.53 million changed hands on the day. The stock is currently trading 1.32% above its 20-day simple moving average (SMA20), while that difference is up 0.67% for SMA50 and it goes to 25.85% higher than SMA200.

    T. Rowe Price Associates, Inc. (I.. acquired 94.13 million shares of Marvell Technology Group Ltd. having value of about $3.43 billion. Data submitted at the U.S SEC by T. Rowe Price Associates, Inc. (I.. revealed that the firm now holds 6.19 million shares in the company valued at close to $220597575.81, or have control over 7.04% stake in the company. Marvell Technology Group Ltd. (NASDAQ: MRVL) currently have 663.55M outstanding shares and institutions hold larger chunk of about 92.50% of that. Holding of mutual funds in the company is about 31.81% while other institutional holders and individual stake holders have control over 59.13% and 27.48% of the stake respectively.

    The stock has a current market capitalization of $23.22B and its 3Y-monthly beta is at 1.00. PE ratio of stock for trailing 12 months is 16.62, while it has posted earnings per share of $2.14 in the same period. Its PEG reads 0.42 and has Quick Ratio of 1.70 while making debt-to-equity ratio of 0.17. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for MRVL, volatility over the week remained 2.07% while standing at 2.54% over the month.

    Analysts are in expectations that Marvell Technology Group Ltd. (MRVL) stock would likely to be making an EPS of $0.2 in the current quarter, while forecast for next quarter ESPS is $0.25 and it is $1.39 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.19 which is $0.22 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.16 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 873.60% while it is estimated to increase by 51.41% in next year. EPS is likely to grow at an annualized rate of 39.70% for next 5-years, compared to annual growth of 20.30% made by the stock over the past 5-years.

    Analysts at 27 brokerage firms have issued recommendations for the Marvell Technology Group Ltd. (MRVL)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.00. Out of those 27 Wall Street analysts, 20 recommended a “Buy” rating, while 5 were in favor recommending the stock as a “Hold” and 2 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Wells Fargo on July 15, 2020 offering an Equal weight rating for the stock and assigned a target price of to it. Coverage by Morgan Stanley stated Marvell Technology Group Ltd. (MRVL) stock as an Equal-weight in their note to investors on June 16, 2020, suggesting a price target of $36 for the stock. On May 29, 2020, Needham Reiterated their recommendations, while on April 15, 2020, Needham Reiterated their ratings for the stock with a price target of $28. Stock get an Underperform rating from Cowen on February 07, 2020.


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