Price Action Don’t Lie: After Today’s Huge Decline, Is Cavium Inc’s Near-Term Analysis Negative?

Price Action Don't Lie: After Today's Huge Decline, Is Cavium Inc's Near Term Analysis Negative?

The stock of Cavium Inc (NASDAQ:CAVM) is a huge mover today! About 2.01 million shares traded hands or 73.28% up from the average. Cavium Inc (NASDAQ:CAVM) has declined 7.60% since March 9, 2016 and is downtrending. It has underperformed by 15.02% the S&P500.
The move comes after 8 months negative chart setup for the $3.02 billion company. It was reported on Oct, 12 by Barchart.com. We have $49.02 PT which if reached, will make NASDAQ:CAVM worth $271.80 million less.

Analysts await Cavium Inc (NASDAQ:CAVM) to report earnings on October, 26. They expect $0.13 earnings per share, down 18.75% or $0.03 from last year’s $0.16 per share. CAVM’s profit will be $7.30 million for 103.71 P/E if the $0.13 EPS becomes a reality. After $0.04 actual earnings per share reported by Cavium Inc for the previous quarter, Wall Street now forecasts 225.00% EPS growth.

Cavium Inc (NASDAQ:CAVM) Ratings Coverage

Out of 16 analysts covering Cavium Networks Inc. (NASDAQ:CAVM), 9 rate it a “Buy”, 1 “Sell”, while 6 “Hold”. This means 56% are positive. Cavium Networks Inc. has been the topic of 29 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The company was downgraded on Monday, November 23 by JMP Securities. Brean Capital initiated the shares of CAVM in a report on Tuesday, May 3 with “Buy” rating. As per Thursday, August 13, the company rating was maintained by Canaccord Genuity. Canaccord Genuity maintained the shares of CAVM in a report on Thursday, July 30 with “Buy” rating. Susquehanna initiated the stock with “Positive” rating in Tuesday, September 20 report. The company was maintained on Thursday, July 30 by Topeka Capital Markets. The stock of Cavium Inc (NASDAQ:CAVM) earned “Outperform” rating by Wedbush on Thursday, April 28. The stock has “Buy” rating given by Needham on Thursday, July 30. Jeffries downgraded Cavium Inc (NASDAQ:CAVM) on Thursday, June 16 to “Hold” rating. The company was upgraded on Wednesday, May 4 by Benchmark.

According to Zacks Investment Research, “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.”

Insitutional Activity: The institutional sentiment decreased to 0.9 in 2016 Q2. Its down 0.05, from 0.95 in 2016Q1. The ratio is negative, as 59 funds sold all Cavium Inc shares owned while 59 reduced positions. 30 funds bought stakes while 76 increased positions. They now own 60.99 million shares or 0.39% less from 61.23 million shares in 2016Q1.
Pnc Fincl Service Grp accumulated 0% or 6,699 shares. Intl Gru last reported 0% of its portfolio in the stock. Paloma Management Com, a Connecticut-based fund reported 24,805 shares. Premier Asset Managment Ltd has invested 1.69% of its portfolio in Cavium Inc (NASDAQ:CAVM). Fieldpoint Private Advisors Incorporated has 53,605 shares for 1.41% of their US portfolio. Adage Prns Group Limited Liability Corporation has 721,592 shares for 0.08% of their US portfolio. Tower Research Capital Llc (Trc), a New York-based fund reported 2,540 shares. The Pennsylvania-based Emerald Mutual Fund Advisers Tru has invested 0.6% in Cavium Inc (NASDAQ:CAVM). Westpac Banking accumulated 0% or 9,979 shares. New York State Common Retirement Fund has invested 0.01% of its portfolio in Cavium Inc (NASDAQ:CAVM). Woodstock Corp has 6,956 shares for 0.06% of their US portfolio. Manufacturers Life Ins The, a Ontario – Canada-based fund reported 37,684 shares. The California-based Rs Invest Mgmt Limited Liability Com has invested 0.26% in Cavium Inc (NASDAQ:CAVM). Quantitative Systematic Strategies Lc last reported 0.14% of its portfolio in the stock. Voya Inv Mngmt Limited Liability Company last reported 23,054 shares in the company.

Insider Transactions: Since August 16, 2016, the stock had 3 insider purchases, and 0 insider sales for $2.66 million net activity. Another trade for 20,000 shares valued at $1.04M was made by Hussain Muhammad Raghib on Tuesday, August 16. CHADWICK ARTHUR D bought $519,400 worth of stock or 10,000 shares.

More notable recent Cavium Inc (NASDAQ:CAVM) news were published by: Prnewswire.com which released: “Cavium, Inc. Announces Expiration of HSR Waiting Period for Proposed …” on August 02, 2016, also Prnewswire.com with their article: “Cavium, Inc. Announces Successful Completion of the Exchange Offer in …” published on August 16, 2016, Prnewswire.com published: “Cavium, Inc. Announces Extension of the Expiration of the Exchange Offer in …” on August 10, 2016. More interesting news about Cavium Inc (NASDAQ:CAVM) were released by: Prnewswire.com and their article: “Cavium, Inc. Commences Exchange Offer to Acquire QLogic Corporation” published on July 13, 2016 as well as Prnewswire.com‘s news article titled: “Cavium QLogic Accelerates Software Defined Datacenters with Windows Server 2016” with publication date: September 27, 2016.

CAVM Company Profile

Cavium, Inc., incorporated on June 22, 2006, is a well-known 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. It offers integrated semiconductors that provide single or multiple cores of processors, along with intelligent Layer 2 through 7 processing for enterprise network, data center, broadband and consumer, and access and service well-known provider markets.

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