Zacks Investment Research cut shares of Marvell Technology Group (NASDAQ:MRVL) from a hold rating to a strong sell rating in a research report released on Wednesday.

According to Zacks, “Marvell's Q4 results were hurt by lower-than-expected performance in the networking and storage businesses. Low demand for storage controllers due to fall in cloud capital spending and CPU shortages, hurt Marvell’s top-line. Tight inventory control by customers due to demand shift from product consigned to vendor-managed inventory arrangements is also a concern. Moreover, the companydepends on some big customers for a substantial portion of its net revenues, exposing it to customer concentration risk. Shares underperformed the industry in the past year. However, Marvell’s WiFi business is expected to start boosting next-generation products built on the latest WiFi 6 standard, leading its WiFi business to return to growth from the second quarter of fiscal 2020.”

A number of other equities research analysts also recently issued reports on the stock. Rosenblatt Securities reaffirmed a buy rating and issued a $26.00 price objective on shares of Marvell Technology Group in a research report on Thursday, January 10th. Citigroup reduced their target price on shares of Marvell Technology Group from $20.00 to $17.30 and set a neutral rating for the company in a research report on Thursday, December 6th. Benchmark reduced their target price on shares of Marvell Technology Group to $30.00 in a research report on Sunday, December 2nd. Macquarie raised shares of Marvell Technology Group from a neutral rating to an outperform rating and set a $24.00 target price for the company in a research report on Tuesday, February 19th. Finally, Needham & Company LLC reissued a buy rating and set a $25.00 target price on shares of Marvell Technology Group in a research report on Monday, January 14th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and sixteen have issued a buy rating to the stock. The company presently has a consensus rating of Buy and an average target price of $24.71.

Shares of MRVL stock opened at $20.14 on Wednesday. Marvell Technology Group has a 52-week low of $14.34 and a 52-week high of $23.45. The company has a quick ratio of 1.74, a current ratio of 2.32 and a debt-to-equity ratio of 0.24. The stock has a market capitalization of $13.24 billion, a price-to-earnings ratio of 23.69, a PEG ratio of 3.61 and a beta of 1.01.

Marvell Technology Group (NASDAQ:MRVL) last issued its quarterly earnings data on Thursday, March 7th. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.19 by ($0.02). Marvell Technology Group had a positive return on equity of 8.19% and a negative net margin of 6.25%. The firm had revenue of $744.80 million during the quarter, compared to the consensus estimate of $739.88 million. During the same period in the previous year, the company posted $0.32 earnings per share. On average, equities analysts expect that Marvell Technology Group will post 0.78 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 24th. Investors of record on Wednesday, April 3rd will be paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.19%. Marvell Technology Group’s payout ratio is currently 28.24%.

In other Marvell Technology Group news, CFO Jean X. Hu purchased 15,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 26th. The shares were bought at an average cost of $14.67 per share, for a total transaction of $220,050.00. Following the purchase, the chief financial officer now owns 51,077 shares of the company’s stock, valued at approximately $749,299.59. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Syed Ali sold 442,000 shares of the company’s stock in a transaction that occurred on Friday, January 11th. The shares were sold at an average price of $17.14, for a total transaction of $7,575,880.00. Following the sale, the director now owns 4,950,515 shares in the company, valued at $84,851,827.10. The disclosure for this sale can be found here. Corporate insiders own 0.10% of the company’s stock.

Several hedge funds have recently made changes to their positions in MRVL. FMR LLC lifted its stake in shares of Marvell Technology Group by 48.1% during the 4th quarter. FMR LLC now owns 80,824,523 shares of the semiconductor company’s stock valued at $1,308,549,000 after buying an additional 26,251,979 shares in the last quarter. Vanguard Group Inc lifted its stake in shares of Marvell Technology Group by 45.0% during the 3rd quarter. Vanguard Group Inc now owns 53,229,098 shares of the semiconductor company’s stock valued at $1,027,321,000 after buying an additional 16,517,490 shares in the last quarter. BlackRock Inc. lifted its stake in shares of Marvell Technology Group by 34.5% during the 3rd quarter. BlackRock Inc. now owns 32,541,818 shares of the semiconductor company’s stock valued at $628,056,000 after buying an additional 8,349,897 shares in the last quarter. Morgan Stanley lifted its stake in shares of Marvell Technology Group by 837.0% during the 3rd quarter. Morgan Stanley now owns 6,592,139 shares of the semiconductor company’s stock valued at $127,230,000 after buying an additional 5,888,609 shares in the last quarter. Finally, Norges Bank purchased a new stake in Marvell Technology Group in the 4th quarter worth approximately $90,449,000. Institutional investors own 96.18% of the company’s stock.

About Marvell Technology Group

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.

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