Marvell Technology Group Ltd. (NASDAQ:MRVL) reaches $10.85B market cap as shares jumped 2.98% in recent session. It closed at $16.24, after slipping as low as $15.99 through the day. The shares were pushed to an intraday high Friday at $16.38. Trading activity significantly improved as the volume at ready counter increased to 13,825,069 shares versus 12,487,935 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 15,148,066 shares. The stock is now 13.25% above against its bear-market low of $14.34 on December 26, 2018. It has retreated -55.05% since it’s 52-week high of $25.18 reached in March. Now the market price is down -29.05% on the year and up 0.31% YTD.
MRVL’s 50 day simple moving average (SMA 50) price is $15.93 and its 200-day simple moving average (SMA 200) price is $19.53. The company’s stock currently has a total float of 629.59M shares. Its weekly volatility is hovering around 3.51% and felt 4.18% volatility in price over a month. On the upside, the share price will test short term resistance at around $16.42. On a downside, the stock is likely to find some support, which begins at $16.03. The failure to get near-term support could push it to $15.81.
Separately, it has been reported that multiple insider activity took place at Marvell Technology Group Ltd. (MRVL). CFO Hu Jean X. acquired 15,000 shares for $51,077 in transaction occurred on 2018/12/26. After making this transaction, the CFO owns a direct stake of 220,050 shares, worth $829,491, as per the last closing price. On 2018/12/21 Switz Robert E, Director at MRVL, purchased 2,500 shares at an average price of $14.81 per share. The new stake is valued at $579,833.
Director, Strachan Michael G had invested in 10,000 shares for $69,326 through a trade on 2018/12/20. Following this activity, the insider holds 148,500 shares worth $1,125,854 as of recent close.Wall Street’s most bullish Marvell Technology Group Ltd. (NASDAQ:MRVL) analysts are predicting the share price to blow past $30 per share during the next 12 months. The current median share price forecast by them is $23, suggesting that the stock could increase 41.63% in that time frame. The average price target of $23.72 calls for a nearly 46.06% increase in the stock price.
It had seen a positive analyst call from Citigroup, which upgraded the stock from Neutral to Buy on December 13. Analysts at Needham, maintained the company shares at Buy on December 06 but switched target price from $27 to $25. Brokerage firm Cowen, looks cautious as they stick to prior recommendation of Outperform, in a call on December 06. However, they did change the target price from $26 to $22.
When looking at valuations, Marvell Technology Group Ltd. (MRVL) has a pricey P/E of 58.21x as compared to industry average of 7.69x. Moreover, it trades for 11.17 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.41x price/book and 3.96x price/sales. Compared to others, Marvell Technology Group Ltd. is in a different league with regards to profitability, having net margins of 4.8%. To put some perspective around this, the industry’s average net margin is 21.22%. MRVL’s ROE is 2.2%, which is also considerably worse than the industry’s ROE of 9.21%. It’s also very liquid in the near term, with a current ratio of 2.3. The stock has a debt/capital of 0.24.