This company has made a bold $6 billion bid to buy Cavium. Marvell Technology Group Ltd. (NASDAQ: MRVL) is a fabless supplier of mixed signal and analog semiconductor products to a number of storage, computing and communication applications, including hard disk drives, personal computers, servers, Ethernet switches, printers and connectivity markets.
The Merrill Lynch team is very positive on the company’s purchase of Cavium, and they feel the deal adds significantly to the growth element for the stock. The addition helps to make Marvell solidly positioned in data center, cloud, enterprise, security and 5G.
Shareholders are paid a 1.05% dividend. The consensus price objective was last seen at $27.69. The stock was trading at $22.80 on Wednesday, in a 52-week trading range of $14.58 to $25.18.
This is another company that saw some serious buying recently. Sanmina Corp. (NASDAQ: SANM) is an electronics manufacturing services provider serving the following end markets: industrial, medical and defense (43%), communications networks (37%) and embedded computing and storage (20%).
Sanmina has two reporting segments: Integrated Manufacturing Solutions, which accounts for 80% of revenues, and Components, Products and Services, which accounts for 20%. The company derives approximately 84% of its revenues from non-U.S. operations.
While optical revenues have been somewhat weak in the past two quarters, analysts feel those numbers could turn higher as new programs start to ramp up.
The consensus price target is $32.60. The shares were last seen at $28.40, and the 52-week trading range is $24.60 to $42.95.
This lesser known semiconductor capital equipment leader could also have solid upside potential. Teradyne Inc. (NYSE: TER) provides automatic test equipment (ATE) serving semiconductors, printed circuit board assemblies, and other (automotive, broadband) segments. Its products deliver a competitive advantage to semiconductor, electronics, automotive and network systems companies. Teradyne operates in three segments: Semiconductor Test Systems, Assembly Test Systems and Other Test Systems.
The analysts like this stock as a somewhat ancillary play to the sector and cited the growing emerging robotics silo as more of a reason to own the shares than the fundamentals related to wafer fab equipment. The company also consistently buys back stock.
Shareholders are paid a small 0.73% dividend. The Wall Street consensus price objective is $51.15, and the stock traded at $49.00 early Wednesday. The 52-week trading range is $29.68 to $50.68.
These are five top companies that the traders at SunTrust saw some solid buying in, and they could very well be set up for a solid first quarter. One thing is for sure: anytime there is enough buying to mention specific companies, there is often a reason.