Uncovering Institutional Buying In Marvell Technology Group Ltd. (NASDAQ: MRVL)

DE Stock
DE Stock

T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in Marvell Technology Group Ltd. (NASDAQ:MRVL). The institutional investor has increased its shareholding in the Technology company by 7.04% to 94.13 million shares with purchase of 6.19 million shares. This fresh investment now brings its stake to 14.15% valued currently at $3.43 billion. In addition, Wellington Management Co. LLP raised its holdings by 3.73 million to 40.58 million shares. And BlackRock Investment Management (.. has lifted its position by 9.77% or 0.7 million shares – to 7.82 million shares.

With over 17.79 million Marvell Technology Group Ltd. (MRVL) shares trading Friday and a closing price of $38.25 on the day, the dollar volume was approximately $680.63 million. The shares have shown a positive weekly performance of 14.32% and its price on 08/28/20 gained nearly 6.52%. Currently, there are 663.55M common shares owned by the public and among those 659.12M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 28 analysts who have offered their price forecasts for MRVL have a consensus price objective of $41.21. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $31.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Marvell Technology Group Ltd. stock is 2.00 for the next 12 months. The average price target is -0.08% below its last price level and a downside to the estimated low will see the stock lose -23.39% over that period. But an upside of 23.5% will see the stock hit the forecast high price target while mean target price for the stock is $42.00.

Insiders at the company have transacted a total of 258 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 119 of these insider trades were purchases, accounting for 1,182,433 shares. Insider sales of the common stock occurred on 139 occasions, with total insider shares sold totaling 1,167,291 shares.

The top 3 mutual fund holders in Marvell Technology Group Ltd. are Fidelity Blue Chip Growth Fund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. Fidelity Blue Chip Growth Fund owns 26.33 million shares of the company’s stock, all valued at over $960.32 million. The company sold -1.63 million shares recently to bring their total holdings to about 3.96% of the shares outstanding. Vanguard Total Stock Market Index sold 69518.0 shares to see its total holdings shrink to 18.84 million shares valued at over $687.14 million and representing 2.83% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.12 million shares to bring its total holdings to over 16.27 million shares at a value of $593.53 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.45% of the shares outstanding.

Shares of Marvell Technology Group Ltd. (NASDAQ: MRVL) opened at $36.75, up $0.84 from a prior closing price of $35.91. However, the script later closed the day at $38.25, up 6.52%. The company’s stock has a 5-day price change of 14.32% and 15.98% over the past three months. MRVL shares are trading 44.01% year to date (YTD), with the 12-month market performance up to 58.06% higher. It has a 12-month low price of $16.45 and touched a high of $39.40 over the same period. Currently, 17.79 million shares have been traded, compared to an average intraday trading volume of 8.51 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 8.76%, 8.02%, and 34.77% respectively.

Institutional ownership of Marvell Technology Group Ltd. (NASDAQ: MRVL) shares accounts for 92.50% of the company’s 663.55M shares outstanding. Mutual fund holders own 31.75%, while other institutional holders and individual stakeholders account for 59.21% and 27.48% respectively.

It has a market capitalization of $23.89B and a beta (3y monthly) value of 0.98. The stock’s trailing 12-month PE ratio is 19.20, while the earnings-per-share (ttm) stands at $1.99. The company has a PEG of 0.51 and a Quick Ratio of 1.70 with the debt-to-equity ratio at 0.17. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.34% over the week and 2.71% over the month.

Analysts forecast that Marvell Technology Group Ltd. (MRVL) will achieve an EPS of $0.25 for the current quarter, $0.28 for the next quarter and $1.37 for 2022. The lowest estimate earnings-per-share for the quarter is $0.24 while analysts give the company a high EPS estimate of $0.27. Comparatively, EPS for the current quarter was $0.17 a year ago. Earnings per share for the fiscal year are expected to increase by 873.60%, and 49.67% over the next financial year. EPS should grow at an annualized rate of 37.90% over the next five years, compared to 20.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 28 brokerage firm advisors rate Marvell Technology Group Ltd. (MRVL) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 21 Wall Street analysts polled rate the stock as a buy, while 6 of the 28 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the MRVL, a number of firms have released research notes about the stock. Cowen stated their Market Perform rating for the stock in a research note on August 28, 2020, with the firm’s price target at $31. Rosenblatt coverage for the Marvell Technology Group Ltd. (MRVL) stock in a research note released on August 28, 2020 offered a Buy rating with a price target of $50. Oppenheimer was of a view on August 28, 2020 that the stock is Outperform, while Morgan Stanley gave the stock Equal-Weight rating on August 28, 2020, issuing a price target of $36- $37. JP Morgan on their part issued Overweight rating on August 28, 2020.


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