Zacks Investment Research upgraded shares of Cavium Inc. (NASDAQ:CAVM) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning. The firm currently has $63.00 price target on the semiconductor provider’s stock.
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. Pacific Crest cut Cavium from an overweight rating to an overweight rating in a report on Thursday, June 16th. Jefferies Group cut Cavium from a buy rating to a hold rating in a report on Thursday, June 16th. Canaccord Genuity cut Cavium from a buy rating to a hold rating and lowered their price target for the company from $61.00 to $48.00 in a report on Thursday, June 16th. They noted that the move was a valuation call. Brean Capital reaffirmed a buy rating and issued a $60.00 price target (down previously from $67.00) on shares of Cavium in a report on Thursday, June 16th. Finally, Oppenheimer Holdings Inc. cut Cavium from an outperform rating to a market perform rating in a report on Wednesday, June 15th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have given a buy rating to the stock. Cavium currently has a consensus rating of Buy and an average target price of $61.03.
Cavium (NASDAQ:CAVM) opened at 57.39 on Tuesday. The firm’s 50-day moving average is $54.48 and its 200-day moving average is $50.62. The firm’s market capitalization is $3.32 billion. Cavium has a 52-week low of $35.90 and a 52-week high of $73.95.
Cavium (NASDAQ:CAVM) last issued its earnings results on Tuesday, July 26th. The semiconductor provider reported $0.29 EPS for the quarter, hitting the 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 the consensus estimate of $106.70 million. During the same quarter last year, the company earned $0.41 EPS. The firm’s revenue was up 5.2% compared to the same quarter last year. On average, equities analysts expect that Cavium will post $1.44 earnings per share for the current year.
In related news, COO Muhammad Raghib Hussain bought 20,000 shares of the company’s stock in a transaction on Tuesday, August 16th. The shares were acquired at an average cost of $51.86 per share, with a total value of $1,037,200.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Arthur D. Chadwick bought 10,000 shares of the company’s stock in a transaction on Tuesday, August 16th. The stock was 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 directly owns 102,845 shares of the company’s stock, valued at approximately $5,341,769.30. The disclosure for this purchase can be found here. Corporate insiders own 4.63% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the company. Pacad Investment Ltd. bought a new stake in Cavium during the first quarter valued at approximately $428,000. BlackRock Inc. increased its stake in Cavium by 124.8% in the first quarter. BlackRock Inc. now owns 3,728 shares of the semiconductor provider’s stock valued at $228,000 after buying an additional 2,070 shares during the period. Massmutual Trust Co. FSB ADV bought a new stake in Cavium during the first quarter valued at approximately $226,000. JPMorgan Chase & Co. increased its stake in Cavium by 20.5% in the first quarter. JPMorgan Chase & Co. now owns 1,436,860 shares of the semiconductor provider’s stock valued at $87,878,000 after buying an additional 244,463 shares during the period. Finally, TimesSquare Capital Management LLC increased its stake in Cavium by 8.3% in the first quarter. TimesSquare Capital Management LLC now owns 813,400 shares of the semiconductor provider’s stock valued at $49,748,000 after buying an additional 62,100 shares during the period. 93.93% of the stock is currently owned by institutional investors and hedge funds.
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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