Cavium (NASDAQ:CAVM) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research lowered shares of Cavium (NASDAQ:CAVM) from a hold rating to a sell rating in a research note released on Tuesday, January 2nd.

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 a number of other research reports. BidaskClub lowered Cavium from a buy rating to a hold rating in a research note on Thursday, December 7th. Jefferies Group reissued a buy rating and set a $40.00 price target on shares of Cavium in a research note on Sunday, November 26th. Susquehanna Bancshares reissued a neutral rating and set a $83.00 price target (down previously from $85.00) on shares of Cavium in a research note on Tuesday, November 21st. Needham & Company LLC restated a buy rating and set a $90.00 price objective on shares of Cavium in a report on Tuesday, November 21st. Finally, Canaccord Genuity restated a hold rating and set a $85.00 price objective (up from $67.00) on shares of Cavium in a report on Tuesday, November 21st. One research analyst has rated the stock with a sell rating, ten have given a hold rating and nine have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $78.41.

Cavium (NASDAQ CAVM) opened at $89.99 on Tuesday. The company has a debt-to-equity ratio of 0.81, a current ratio of 2.87 and a quick ratio of 2.27. Cavium has a 52-week low of $56.96 and a 52-week high of $90.83. The stock has a market capitalization of $6,119.59, a PE ratio of -31.91, a P/E/G ratio of 2.17 and a beta of 1.35.

Cavium (NASDAQ:CAVM) last released its earnings results on Wednesday, November 1st. The semiconductor provider reported $0.76 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.74 by $0.02. The company had revenue of $251.99 million for the quarter, compared to analysts’ expectations of $250.16 million. Cavium had a positive return on equity of 11.16% and a negative net margin of 19.94%. The firm’s quarterly revenue was up 49.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.43 EPS. equities analysts expect that Cavium will post 1.33 earnings per share for the current fiscal year.

In related news, VP Anil Kumar Jain sold 8,500 shares of the firm’s stock in a transaction that occurred on Tuesday, November 21st. The shares were sold at an average price of $85.90, for a total transaction of $730,150.00. Following the transaction, the vice president now owns 91,616 shares in the company, valued at $7,869,814.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Vincent P. Pangrazio sold 15,000 shares of the firm’s stock in a transaction that occurred on Friday, November 10th. The shares were sold at an average price of $77.22, for a total transaction of $1,158,300.00. Following the transaction, the senior vice president now owns 60,039 shares in the company, valued at approximately $4,636,211.58. The disclosure for this sale can be found here. 4.65% of the stock is currently owned by company insiders.

A number of institutional investors have recently bought and sold shares of CAVM. First Trust Advisors LP boosted its stake in Cavium by 739.2% in the 2nd quarter. First Trust Advisors LP now owns 32,108 shares of the semiconductor provider’s stock worth $1,995,000 after purchasing an additional 28,282 shares during the period. SG Americas Securities LLC boosted its stake in shares of Cavium by 146.5% during the 2nd quarter. SG Americas Securities LLC now owns 6,281 shares of the semiconductor provider’s stock valued at $390,000 after buying an additional 3,733 shares during the period. Legal & General Group Plc boosted its stake in shares of Cavium by 11.8% during the 2nd quarter. Legal & General Group Plc now owns 24,972 shares of the semiconductor provider’s stock valued at $1,551,000 after buying an additional 2,631 shares during the period. BNP Paribas Arbitrage SA boosted its stake in shares of Cavium by 107.3% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 2,579 shares of the semiconductor provider’s stock valued at $160,000 after buying an additional 1,335 shares during the period. Finally, State Board of Administration of Florida Retirement System boosted its stake in shares of Cavium by 158.6% during the 2nd quarter. State Board of Administration of Florida Retirement System now owns 97,068 shares of the semiconductor provider’s stock valued at $6,031,000 after buying an additional 59,530 shares during the period.

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Cavium Company Profile

Cavium, Inc is a provider of integrated semiconductor processors that enable intelligent processing for wired and wireless infrastructure and cloud for networking, communications, storage and security applications. The Company’s products consist of multi-core processors for embedded and data center applications, network connectivity for server and switches, storage connectivity, and security processors for offload and appliance.

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