Marvell Technology Group Ltd. [MRVL] gain 4.44% so far this year. What now?

Marvell Technology Group Ltd. [NASDAQ: MRVL] gained 0.10% or 0.05 points to close at $49.65 with a heavy trading volume of 12183647 shares. The company report on April 13, 2021 that Marvell Technology Group Ltd. Announces Closing of $2 Billion Senior Notes Offering.

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Marvell Technology Group Ltd. (NASDAQ: MRVL) (“Marvell”) announced that its wholly owned subsidiary, Marvell Technology, Inc. (“MTI”), has closed its previously announced offering of: (i) $500,000,000 aggregate principal amount of 1.650% Senior Notes due 2026 (the “2026 Notes”), (ii) $750,000,000 aggregate principal amount of 2.450% Senior Notes due 2028 (the “2028 Notes”) and (iii) $750,000,000 aggregate principal amount of 2.950% Senior Notes due 2031 (the “2031 Notes” and, together with the 2026 Notes and the 2028 Notes, the “Notes,” and such offering, the “Notes Offering”). The Notes were sold pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), to purchasers in the United States and pursuant to Regulation S under the Securities Act to purchasers outside of the United States.

The Notes Offering was conducted in connection with the previously announced proposed acquisition of Inphi Corporation (“Inphi”), which is currently expected to close in April 2021, pending approval by Inphi’s stockholders and Marvell’s shareholders, as well as satisfaction of customary closing conditions. Pursuant to the Agreement and Plan of Merger and Reorganization, dated October 29, 2020 (the “Merger Agreement”), by and among Marvell, MTI, Maui Acquisition Company Ltd, a Bermuda exempted company and a wholly owned subsidiary of MTI (“Bermuda Merger Sub”), Indigo Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of MTI (“Delaware Merger Sub”), and Inphi, a Delaware corporation, (i) Bermuda Merger Sub will be merged with and into Marvell (the “Bermuda Merger”), with Marvell continuing as a wholly owned subsidiary of MTI; and (ii) Delaware Merger Sub will be merged with and into Inphi (the “Delaware Merger” and, together with the Bermuda Merger, the “Mergers”), with Inphi continuing as a wholly owned subsidiary of MTI. The net proceeds from the Notes Offering are estimated to be approximately $1.98 billion. MTI intends to use the net proceeds of the Notes Offering to fund a portion of the aggregate cash portion of the merger consideration payable to Inphi stockholders in connection with the Mergers and to pay related fees and expenses. MTI expects to use any remaining net proceeds from the Notes Offering for general corporate purposes. If (i) the Mergers have not been consummated on or prior to June 29, 2021 (or such later date as the parties may designate in accordance with the Merger Agreement, up to March 1, 2022) or (ii) prior to such date, MTI notifies the trustee that MTI and Marvell will not pursue the consummation of the Mergers, then MTI will be required to redeem each series of the Notes then outstanding at a special mandatory redemption price.

It opened the trading session at $49.30, the shares rose to $50.07 and dropped to $48.7126, the range by which the price of stock traded the whole day. The daily chart for MRVL points out that the company has recorded 16.14% gains over the past six months. However, it is still -106.44% lower than its most recent low trading price.

If we look at the average trading volume of 11.20M shares, MRVL reached to a volume of 12183647 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Marvell Technology Group Ltd. [MRVL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MRVL shares is $54.44 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MRVL stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for Marvell Technology Group Ltd. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 08, 2021. The new note on the price target was released on December 04, 2020, representing the official price target for Marvell Technology Group Ltd. stock. Previously, the target price had yet another raise to $48, while Craig Hallum analysts kept a Buy rating on MRVL stock.

The Average True Range (ATR) for Marvell Technology Group Ltd. is set at 1.94, with the Price to Sales ratio for MRVL stock in the period of the last 12 months amounting to 11.48. The Price to Book ratio for the last quarter was 3.97, with the Price to Cash per share for the same quarter was set at 1.09. Price to Free Cash Flow for MRVL in the course of the last twelve months was 61.97 with Quick ratio for the last quarter at 1.30.

Trading performance analysis for MRVL stock

Marvell Technology Group Ltd. [MRVL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.78. With this latest performance, MRVL shares gained by 7.24% in over the last four-week period, additionally plugging by 16.14% over the last 6 months – not to mention a rise of 104.49% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MRVL stock in for the last two-week period is set at 55.06, with the RSI for the last a single of trading hit 57.18, and the three-weeks RSI is set at 53.47 for Marvell Technology Group Ltd. [MRVL]. The present Moving Average for the last 50 days of trading for this stock 48.46, while it was recorded at 50.17 for the last single week of trading, and 43.00 for the last 200 days.

Marvell Technology Group Ltd. [MRVL]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Marvell Technology Group Ltd. [MRVL] shares currently have an operating margin of -1.42 and a Gross Margin at +50.45. Marvell Technology Group Ltd.’s Net Margin is presently recorded at -9.34.

Return on Total Capital for MRVL is now -0.41, given the latest momentum, and Return on Invested Capital for the company is -2.78. Return on Equity for this stock declined to -3.24, with Return on Assets sitting at -2.53. When it comes to the capital structure of this company, Marvell Technology Group Ltd. [MRVL] has a Total Debt to Total Equity ratio set at 17.63. Additionally, MRVL Total Debt to Total Capital is recorded at 14.99, with Total Debt to Total Assets ending up at 13.81. Long-Term Debt to Equity for the company is recorded at 14.03, with the Long-Term Debt to Total Capital now at 11.93.

Reflecting on the efficiency of the workforce at the company, Marvell Technology Group Ltd. [MRVL] managed to generate an average of -$51,928 per employee. Receivables Turnover for the company is 5.77 with a Total Asset Turnover recorded at a value of 0.27.Marvell Technology Group Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.50.

Marvell Technology Group Ltd. [MRVL]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Marvell Technology Group Ltd. posted 0.18/share EPS, while the average EPS was predicted by analysts to be reported at 0.14/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 28.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MRVL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Marvell Technology Group Ltd. go to 37.00%.

An analysis of insider ownership at Marvell Technology Group Ltd. [MRVL]

There are presently around $30,527 million, or 93.80% of MRVL stock, in the hands of institutional investors. The top three institutional holders of MRVL stocks are: FMR LLC with ownership of 100,768,315, which is approximately 1.384% of the company’s market cap and around 0.20% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 78,784,783 shares of the stock with an approximate value of $3.91 billion in MRVL stocks shares; and VANGUARD GROUP INC, currently with $3.02 billion in MRVL stock with ownership of nearly 0.63% of the company’s market capitalization.

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Positions in Marvell Technology Group Ltd. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 437 institutional holders increased their position in Marvell Technology Group Ltd. [NASDAQ:MRVL] by around 54,477,996 shares. Additionally, 232 investors decreased positions by around 36,950,785 shares, while 69 investors held positions by with 523,408,837 shares. The mentioned changes placed institutional holdings at 614,837,618 shares, according to the latest SEC report filing. MRVL stock had 170 new institutional investments in for a total of 5,736,352 shares, while 65 institutional investors sold positions of 9,208,223 shares during the same period.

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