Cavium Inc. (CAVM) Downgraded to Hold at Zacks Investment Research
Cavium Inc. (NASDAQ:CAVM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Cavium, Inc. is engaged in providing semiconductor processors that enable networking, communications, storage, video and security applications. The Company offers software compatible processors with functionality in enterprise, data-center, broadband/consumer and access and service provider equipment. Its processors are supported by ecosystem partners that provide operating systems, tools and application support, hardware reference designs and other services. Cavium, Inc., formerly known as Cavium Networks, Inc., is headquartered in Mountain View, California. “
Several other analysts also recently weighed in on CAVM. TheStreet downgraded Cavium from a “hold” rating to a “sell” rating in a research note on Tuesday, July 12th. Needham & Company LLC reiterated a “buy” rating and issued a $66.00 price target (down from $107.20) on shares of Cavium in a research note on Wednesday, July 27th. Pacific Crest reiterated a “hold” rating on shares of Cavium in a research note on Wednesday, July 27th. Barclays PLC lifted their price target on Cavium from $54.00 to $60.00 and gave the stock an “overweight” rating in a research note on Friday, August 5th. Finally, Susquehanna started coverage on Cavium in a research note on Tuesday, September 20th. They issued a “positive” rating and a $65.00 price target for the company. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and eleven have assigned a buy rating to the stock. Cavium has a consensus rating of “Hold” and an average target price of $61.03.
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Cavium (NASDAQ:CAVM) traded up 1.51% during trading on Tuesday, reaching $54.31. The company’s stock had a trading volume of 665,754 shares. The firm has a 50 day moving average of $55.84 and a 200 day moving average of $50.24. The stock’s market capitalization is $3.14 billion. Cavium has a 52 week low of $35.90 and a 52 week high of $73.95.
Cavium (NASDAQ:CAVM) last announced its earnings results on Tuesday, July 26th. The semiconductor provider reported $0.29 earnings per share for the quarter, meeting the consensus estimate of $0.29. The company earned $107.20 million during the quarter, compared to the consensus estimate of $106.70 million. Cavium had a positive return on equity of 4.39% and a negative net margin of 1.94%. The company’s revenue was up 5.2% on a year-over-year basis. During the same period last year, the firm earned $0.41 earnings per share. Analysts expect that Cavium will post $1.44 EPS for the current year.
In other news, VP Arthur D. Chadwick bought 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 16th. The shares were purchased at an average price of $51.94 per share, with a total value of $519,400.00. Following the completion of the acquisition, the vice president now directly owns 102,845 shares in the company, valued at $5,341,769.30. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Muhammad Raghib Hussain bought 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 16th. The shares were purchased at an average cost of $51.86 per share, for a total transaction of $1,037,200.00. The disclosure for this purchase can be found here. Corporate insiders own 4.63% of the company’s stock.
Large investors have recently made changes to their positions in the company. State Street Corp boosted its stake in shares of Cavium by 1.4% in the first quarter. State Street Corp now owns 1,095,470 shares of the semiconductor provider’s stock valued at $66,993,000 after buying an additional 15,637 shares during the last quarter. Wellington Management Group LLP boosted its stake in shares of Cavium by 252.1% in the first quarter. Wellington Management Group LLP now owns 2,000,692 shares of the semiconductor provider’s stock valued at $122,361,000 after buying an additional 1,432,512 shares during the last quarter. Capital Fund Management S.A. purchased a new stake in shares of Cavium during the second quarter valued at approximately $14,184,000. Standard Life Investments LTD boosted its stake in shares of Cavium by 19.1% in the second quarter. Standard Life Investments LTD now owns 3,799,853 shares of the semiconductor provider’s stock valued at $146,731,000 after buying an additional 608,685 shares during the last quarter. Finally, Comgest Global Investors S.A.S. boosted its stake in shares of Cavium by 8.9% in the second quarter. Comgest Global Investors S.A.S. now owns 405,230 shares of the semiconductor provider’s stock valued at $15,642,000 after buying an additional 33,213 shares during the last quarter. 94.01% of the stock is currently owned by hedge funds and other institutional investors.
Cavium Company Profile
Cavium, Inc is a provider of semiconductor processors, which enables processing for wired and wireless networking, communications, storage, cloud, wireless, security, video and connected home and office applications. The Company’s products include OCTEON, OCTEON Fusion, OCTEON XL, LiquidIO, NITROX, NEURON Search, ThunderX, Xpliant and XPA.
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