Marvell Technology Group (MRVL) Is Up After Workforce Reduction

MKM Partners now has a buy rating on the stock. The 52-week high of the share price is $16.78 and the company has a market cap of $4,576 million. In a report issued on September 11, Susquehanna also downgraded the stock to Hold with a $9 price target. The stock has a 50-day moving average of $10.72 and a 200 day moving average of $13.30. Marvell Technology Group has an average rating of “Hold” and an average price target of $12.31.

Marvell Technology Group (NASDAQ:MRVL) traded up 2.83% on Friday, reaching $9.28. Two equities research analysts have rated the stock with a sell rating, twenty-three have given a hold rating and six have assigned a buy rating to the company’s stock.

Chipmaker Marvell Technology Group Ltd said it would cut jobs in its mobile platform business, resulting in a 17 percent reduction in its global workforce. The 12-month consensus target price for the stock is $11.26, which reflects an upside potential of 23.87% over the current price. The semiconductor provider reported ($0.74) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.11 by $0.85. Taking the midpoint of this operating expense range, and assuming that such expenses are evenly distributed across the year, this would imply that the company’s mobile platform business lost $84.5 million in the first half of the year. During last 3 month period, 0.09% of total institutional ownership has changed in the company shares.

Marvell Technology Group Ltd. (Marvell) is a fabless semiconductor provider of application-specific standard products.The Company develops complex System-on-a-Chip (SoC) devices. In April 2011, the Company acquired the PHY business of a company, which specializes in the design of networking devices. Its products serve diverse programs found in carrier, metropolitan, business and PC -client data communications, and storage systems. Furthermore, the Organization serves the consumer electronics marketplace for the convergence of voice video and data applications. As a fabless integrated circuit firm, the Organization relies on independent, third party contractors to perform manufacturing, assembly and evaluation functions. Even though Marvell was incurring significant losses pursuing the mobile platform market, it’s fairly clear that the company was underspending relative to its key competitors in this market.