Semiconductor company Marvell Technology Group has confirmed on Monday its acquisition of Aquantica Corp, a leader in Multi-Gig Ethernet connectivity, for $13.25 per share.
According to the company’s press briefing, this acquisition is expected to help Marvell in further diversifying its portfolio of copper and optical physical layer product offerings along with further extending its position in the Multi-Gig 2.5G/5G/10G Ethernet segments,. It is expected that a combination of Marvell’s gigabit PHY along with Aquantia's innovative Multi-gig automotive PHYs will create broadest and most advanced range of high-speed in-car networking solutions in the world.
The acquisition is timely and important as ethernet in-vehicle networks for mainstream adoption is expected to grow at a 62 % annualized growth rate from 53 million in 2018 to 367 million by 2022. Together, the companies expect to seamlessly power the data economy through enterprise application or in cloud infrastructure.
The acquisition is further expected to boost non-GAAP earnings per share of the company and create $40 million in annual run-rate synergies within one year of the transaction closing.
The Aroon Indicator for MRVL entered a downward trend on February 29, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 184 similar instances where the Aroon Indicator formed such a pattern. In of the 184 cases the stock moved lower. This puts the odds of a downward move at .
The 10-day RSI Indicator for MRVL moved out of overbought territory on March 08, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for MRVL turned negative on March 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for MRVL crossed bearishly below the 50-day moving average on March 21, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MRVL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MRVL broke above its upper Bollinger Band on March 01, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on March 27, 2024. You may want to consider a long position or call options on MRVL as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
MRVL moved above its 50-day moving average on March 27, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MRVL advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MRVL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.223) is normal, around the industry mean (7.389). P/E Ratio (0.000) is within average values for comparable stocks, (128.609). Projected Growth (PEG Ratio) (1.774) is also within normal values, averaging (2.449). Dividend Yield (0.003) settles around the average of (0.021) among similar stocks. P/S Ratio (11.312) is also within normal values, averaging (11.903).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which engages in the business of providing semiconductors to high-performance application-specific standard products
Industry Semiconductors