Tag Archives: mrvl

Marvell Catches Activist Starboard Investment; Upgraded To Buy

Beleaguered Marvell Technology Group ( MRVL ) stock pocketed a major upgrade Monday on activist investor Starboard Value’s nearly 7% stake in the Bermuda-based chipmaker. Marvell stock flew almost 7% on Feb. 3, the day Starboard’s investment was announced. Starboard has built its investment since December, B. Riley analyst Craig Ellis wrote in a research report. Ellis upgraded Marvell stock to buy from a sell rating. Yet, in the stock market today , shares were down 1.5%, trading near 8.80. Starboard’s 6.7% stake in Marvell “casts significant doubt on our ‘sell’ rating which was predicated on financial inquiry completion risks and post-review financial execution concerns,” Ellis wrote. In October, Marvell revealed an accounting error may have shifted 7%-8% of sales to Q2, rather than Q3. Marvell’s PricewaterhouseCoopers auditor resigned amid the probe. The resulting internal investigation questioned senior management’s operating style. The SEC and U.S. Attorney’s Office joined the investigation in December. Marvell noted it’s “common for governmental agencies to open investigations in these circumstances.” Starboard’s investment isn’t a panacea, but could come with several Marvell board seats, “a tier-1 auditor and marque CFO,” Ellis wrote. Starboard also was an investor in TriQuint before it became Apple ( AAPL ) supplier  Qorvo ( QRVO ) and Integrated Device Technology ( IDTI ). “We believe (Starboard) knows semiconductors well, with a record of agitating for increased shareholder interest,” he wrote. Starboard consultants include Tessera Technologies ( TSRA ) Chairman Rick Hill, Viavi Solutions ( VIAV ) CEO Oleg Khaykin and former Integrated Devices interim CEO Jeff McCreary. It’s also possible Starboard could help Marvell wrangle R&D capabilities, Ellis wrote. “Past checks show undisciplined and at times ineffectual field sales and engineering,” he wrote. At least two analysts rate Marvell stock a sell, and 21 others rate the stock as a hold. Ellis is among at least five analysts to rate Marvell stock a buy. Ellis boosted his price target on Marvell stock to 12 from 7.  

Marvell Plunges; SEC, U.S. Attorney Probe Accounting

Marvell Technology Group (MRVL) stock fell below its 200-day moving average Tuesday after the company late Monday said two federal government agencies had joined in its review of its accounting practices. The SEC and U.S. Attorney’s Office are joining its audit committee’s investigation into those practices, Marvell said in its fiscal Q3 earnings release late Monday. Marvell stock was down 6.6% in midday trading on the stock market today, near

Marvell Belly-Flops On Auditor’s Resignation

Marvell Technology Group (MRVL) stock belly-flopped Tuesday after the chipmaker announced that its auditor had resigned amid an accounting probe. According to an 8-K report filed Monday with the Securities and Exchange Commission , the company said its PricewaterhouseCoopers auditor advised expanding the 2016 audit in four key areas. When Marvell rejected the expansion, the auditor resigned effective Oct. 20, according to the filing. In early