Zacks Investment Research Downgrades Cavium Inc. (CAVM) to Hold
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. “
CAVM has been the topic of several other research reports. TheStreet upgraded Cavium from a “sell” rating to a “hold” rating in a research note on Friday, September 2nd. Susquehanna started coverage on Cavium in a research note on Tuesday, September 20th. They issued a “positive” rating and a $65.00 target price on the stock. JPMorgan Chase & Co. restated an “overweight” rating on shares of Cavium in a research note on Tuesday, September 13th. Needham & Company LLC restated a “buy” rating and issued a $66.00 target price on shares of Cavium in a research note on Thursday, August 25th. Finally, Pacific Crest restated a “hold” rating on shares of Cavium in a research note on Wednesday, July 27th. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating and eleven have assigned a buy rating to the company’s stock. Cavium has a consensus rating of “Hold” and an average target price of $61.03.
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Shares of Cavium (NASDAQ:CAVM) traded up 1.51% during trading on Tuesday, reaching $54.31. 665,754 shares of the company traded hands. Cavium has a 12 month low of $35.90 and a 12 month high of $73.95. The stock’s market cap is $3.14 billion. The stock’s 50 day moving average price is $55.84 and its 200-day moving average price is $50.24.
Cavium (NASDAQ:CAVM) last issued its quarterly earnings data on Tuesday, July 26th. The semiconductor provider reported $0.29 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.29. Cavium had a positive return on equity of 4.39% and a negative net margin of 1.94%. The business earned $107.20 million during the quarter, compared to analyst estimates of $106.70 million. During the same period in the previous year, the firm earned $0.41 EPS. Cavium’s quarterly revenue was up 5.2% compared to the same quarter last year. On average, equities research analysts expect that Cavium will post $1.44 EPS for the current fiscal year.
In related news, COO Muhammad Raghib Hussain bought 20,000 shares of Cavium stock in a transaction dated Tuesday, August 16th. The shares were bought at an average cost of $51.86 per share, with a total value of $1,037,200.00. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Arthur D. Chadwick bought 10,000 shares of Cavium stock in a transaction dated Tuesday, August 16th. The shares were bought at an average cost of $51.94 per share, for a total transaction of $519,400.00. Following the completion of the acquisition, the vice president now owns 102,845 shares in the company, valued at approximately $5,341,769.30. The disclosure for this purchase can be found here. 4.63% of the stock is owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in CAVM. FMR LLC raised its stake in Cavium by 1.8% in the second quarter. FMR LLC now owns 8,600,271 shares of the semiconductor provider’s stock valued at $331,971,000 after buying an additional 151,055 shares during the period. Vanguard Group Inc. increased its stake in shares of Cavium by 2.0% in the second quarter. Vanguard Group Inc. now owns 3,991,770 shares of the semiconductor provider’s stock valued at $154,082,000 after buying an additional 77,699 shares in the last quarter. Standard Life Investments LTD increased 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 in the last quarter. Wellington Management Group LLP increased 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 in the last quarter. Finally, JPMorgan Chase & Co. increased its stake in shares of Cavium by 22.4% in the second quarter. JPMorgan Chase & Co. now owns 1,758,161 shares of the semiconductor provider’s stock valued at $67,865,000 after buying an additional 321,301 shares in the last quarter. 94.01% of the stock is currently owned by institutional investors.
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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