Cavium Inc (CAVM): Today's Featured Technology Loser

Cavium ( CAVM) pushed the Technology sector lower today making it today's featured Technology loser. The sector as a whole closed the day up 1.4%. By the end of trading, Cavium fell 16 cents (-0.6%) to $28.06 on average volume. Throughout the day, 1.6 million shares of Cavium exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $27.97-$29.16 after having opened the day at $28.34 as compared to the previous trading day's close of $28.21. Other company's within the Technology sector that declined today were: Nexxus Lighting ( NEXS), down 13.3%, Affymetrix ( AFFX), down 12.7%, Tegal Corporation ( TGAL), down 10.8%, and Cover-All Technologies ( COVR), down 10%.

Cavium, Inc. designs, develops, and markets semiconductor processors for intelligent and secure networks. Cavium has a market cap of $1.34 billion and is part of the electronics industry. The company has a P/E ratio of 29.2, above the S&P 500 P/E ratio of 17.7. Shares are down 33% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Cavium a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Cavium 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 weak operating cash flow.

On the positive front, Network Engines ( NEI), up 83%, Superconductor Technologies ( SCON), up 18.2%, Deltathree ( DDDC), up 17.6%, and Sky-mobi ( MOBI), up 17.2%, were all gainers within the technology sector with NVIDIA Corporation ( NVDA) being today's featured technology sector winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).
null

If you liked this article you might like

Netflix Sees Stream of Analysts Jump Into $200 Price Target Boat

SoftBank's Reported $4 Billion Stake in Nvidia Could Have a Strategic Purpose

Cisco's Reported Software Plans Appear to Be a Pragmatic Response to Big Threats

Cisco's Reported Software Plans Appear to Be a Pragmatic Response to Big Threats