Marvell Technology Group Ltd. (NASDAQ:MRVL) has been upgraded by Citigroup, which now rates the stock as Buy versus Neutral prior rating , according to a note issued 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.
Marvell Technology Group Ltd. (MRVL) hit an intraday high Friday at $18.45. The shares finished at $18.39, after trading as low as $17.98 earlier in the session. It rose 0.33% in recent trade and currently has a stock-market value of $12.05B. Trading activity significantly weakened as the volume at ready counter decreased to 7,981,290 shares versus 12,758,665 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 12,524,370 shares. The stock is now 28.24% above against its bear-market low of $14.34 on December 26, 2018. It has retreated -36.92% since it’s 52-week high of $25.18 reached in March. Now the market price is down -13.78% on the year and up 13.59% YTD.
MRVL’s 50 day simple moving average (SMA 50) price is $16.58 and its 200-day simple moving average (SMA 200) price is $19.08. The company’s stock currently has a total float of 629.48M shares. Its weekly volatility is hovering around 2.36% and felt 2.9% volatility in price over a month. On the upside, the share price will test short term resistance at around $18.57. On a downside, the stock is likely to find some support, which begins at $18.1. The failure to get near-term support could push it to $17.8.
Separately, it has been reported that multiple insider activity took place at Marvell Technology Group Ltd. (MRVL). Director Ali Syed sold 442,000 shares for $4,508,515 in transaction occurred on 2019/01/11. After making this transaction, the Director owns a direct stake of 7,575,880 shares, worth $82,911,591, as per the last closing price. On 2018/12/26 Hu Jean X., CFO at MRVL, purchased 15,000 shares at an average price of $14.67 per share. The new stake is valued at $939,306.
Director, Switz Robert E had invested in 2,500 shares for $35,704 through a trade on 2018/12/21. Following this activity, the insider holds 37,025 shares worth $656,597 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 25.07% in that time frame. The average price target of $22.54 calls for a nearly 22.57% increase in the stock price.
When looking at valuations, Marvell Technology Group Ltd. (MRVL) has a cheap P/E of 65.91x as compared to industry average of 4113.29x. Moreover, it trades for 14.48 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.6x price/book and 4.4x 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 20.11%. MRVL’s ROE is 2.2%, which is also considerably worse than the industry’s ROE of 10.06%. 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.