What Are The Risk Factors For Marvell Technology Inc. (MRVL)?

As of Thursday close, Marvell Technology Inc.’s (NASDAQ:MRVL) stock was down -$0.15, moving down -0.29 percent to $52.39. The average number of shares traded per day over the past five days has been 11,305,620 shares. 1 time new highs have been achieved over the past 5 days, with a -$5.90 fall in that time frame. In the last twenty days, the average volume was 9,581,390, while in the previous 50 days, it was 10,433,442.

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Since last month, MRVL stock retreated -12.87%. Shares of the company fell to $50.41 on 05/12/22, the lowest level in the past month. A 52-week high of $93.85 was reached on 01/04/22 after having rallying from a 52-week low of $40.79. Since the beginning of this year, MRVL’s stock price has dropped by -40.12% or -$35.10, and marked a new high 2 times. However, the stock has declined by -44.18% since its 52-week high.

Marvell Technology Inc. (MRVL) last reported insider trading activity 17 days ago on Apr 26. Nguyen Loi, the EVP, Optical & CC Grp of the company, disposed of 9,189 shares for $60.00 on Apr 26. It resulted in a $551,340 divestment by the insider. Nguyen Loi sold 10,247 shares at an average price of $64.48 on Apr 20. The insider now owns 207,687 shares following the transaction. On Apr 19, EVP Worldwide Sales Jarnac Dean E Jr. sold 6,000 shares at $60.96 apiece. The transaction was valued at $365,760.

Valuation Metrics

The stock’s beta is 1.27. Besides these, the trailing price-to-sales (P/S) ratio of 10.05, the price-to-book (PB) ratio of 2.82, and the price-to-cash flow ratio of 97.65 may also be considered.

The latest dividend of $0.06 per share was paid out, remained unchanged from last year’s $0.06.

Financial Health

In the three months ended October 30, Marvell Technology Inc.’s quick ratio stood at 1.30, while its current ratio was 1.80, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending October 30 was 0.29, and the total debt-to-equity ratio was 0.29. On the profitability front, the trailing twelve-month gross margin is 46.30% percent. In the year ended October 30, operating margins totaled -7.80%. Based on annual data, MRVL earned $2.06 billion in gross profit and brought in $4.46 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -1.40%. Return on equity (ROE) for the past 12 months was -2.80%.

In Marvell Technology Inc.’s quarter-end financial report for October 30, it reported total debt of $4.48 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. MRVL’s revenue rose 1197.18% to $1.21 billion during the quarter, while net income inched up to -$68.37 million. While analysts expected Marvell Technology Inc. to report $0.38 quarterly earnings, the actual figure was $0.43 per share, beating the consensus estimate by 13.20%. During the quarter, the company generated $411.46 million in EBITDA. The liabilities of Marvell Technology Inc. were 6.41 billion at the end of its most recent quarter ended October 30, and its total debt was $4.75 billion. The value of shareholders’ equity is $847.8 million.

Technical Picture

This quick technical analysis looks at Marvell Technology Inc.’s (MRVL) price momentum. With a historical volatility rate of 65.69%, the RSI 9-day stood at 33.03% on 12 May.

With respect to its five-day moving average, the current Marvell Technology Inc. price is down by -10.12% percent or -$5.90. At present, MRVL shares trade -17.24% below its 20-day simple moving average and -37.65% percent below its 100-day simple moving average. However, the stock is currently trading approximately -22.58% below its SMA50 and -11.19% below its SMA200.

Stochastic coefficient K was 12.10% and Stochastic coefficient D was 11.27%, while ATR was 3.74. Given the Stochastic reading of 15.59% for the 14-day period, the RSI (14) reading has been calculated as 36.08%. As of today, the MACD Oscillator reading stands at -3.67, while the 14-day reading stands at -4.34.

Analyst Ratings

Raymond James upgraded its rating on Marvell Technology Inc. (NASDAQ: MRVL) to an Outperform in a note to investors on April 25, 2022. The analysts firm previously had a Mkt perform rating on the stock.Marvell Technology Inc. (MRVL) has been rated Buy by analysts. According to 0 brokerage firms, MRVL is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate Marvell Technology Inc. stock as buy, with 26 recommending it as overweight.

With a median target price of $95.00, the current consensus forecast for the stock is $70.00 – $125.00. Based on these forecasts, analysts predict Marvell Technology Inc. (MRVL) will achieve an average price target of $94.21.


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