MRVL Moves Lower After Q3 Revenue Miss

The shares of Marvell Technology Group Ltd (Nasdaq: MRVLare down 4.3% at $43.56 at last check, after the semiconductor concern reported a third-quarter revenue miss and bleak fourth-quarter revenue outlook. To follow, Summit downgraded MRVL to "hold" from "buy," while no fewer than four other analysts chimed in with price-target hikes. 

Trader reviewing chart

After bouncing off the 120-day moving average at the start of November, MRVL enjoyed a steadily climb on the charts that culminated in a Dec. 1 record high of $47.21. Tapering off since then, today's drop has the stock on track for its third-straight day of losses. 

Heading into today, most of the brokerage bunch leaned bullish on Marvell stock, with 17 of the 22 in coverage sporting a "buy" or better rating. Meanwhile, the 12-month consensus price target of $49.75 is a 14.3% premium to current levels. 

This sentiment has echoed in the options pits for the past 10 weeks, as per MRVL's 50-day call/put volume ratio of 8.19 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 94% of readings from the past year, showing long calls being picked up at a much faster-than-usual clip. 

Today, MRVL options are taking off, with 42,000 calls and 17,000 puts across the tape so far -- four times what's typically seen at this point. The January 2021 50-strike call is seeing the most action, while also pulling in the highest amount of open interest this afternoon.   

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.