Marvell Technology Group (MRVL) Strong On High Relative Volume Today

Trade-Ideas LLC identified Marvell Technology Group (MRVL) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Marvell Technology Group

(

MRVL

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Marvell Technology Group as such a stock due to the following factors:

  • MRVL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.1 million.
  • MRVL has traded 441,634 shares today.
  • MRVL is trading at 2.73 times the normal volume for the stock at this time of day.
  • MRVL is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MRVL:

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. The stock currently has a dividend yield of 2.4%. MRVL has a PE ratio of 4. Currently there are 5 analysts that rate Marvell Technology Group a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Marvell Technology Group has been 5.0 million shares per day over the past 30 days. Marvell Technology Group has a market cap of $5.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.74 and a short float of 2.1% with 2.00 days to cover. Shares are up 13.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Marvell Technology Group as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • MRVL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.80, which clearly demonstrates the ability to cover short-term cash needs.
  • 45.19% is the gross profit margin for MARVELL TECHNOLOGY GROUP LTD which we consider to be strong. Regardless of MRVL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MRVL's net profit margin of -9.15% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 153.5% when compared to the same quarter one year ago, falling from $115.30 million to -$61.74 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MARVELL TECHNOLOGY GROUP LTD's return on equity significantly trails that of both the industry average and the S&P 500.

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