Norges Bank Purchases Shares of 9,259,852 Marvell Technology, Inc. $MRVL

Key Points

• Norges Bank opened a new stake in Marvell by buying 9,259,852 shares (about $716.7 million), giving it roughly 1.07% ownership of the company.
• Marvell's Board authorized a $5.0 billion share repurchase plan, enabling the company to buy back up to about 7.8% of outstanding shares.
• In the latest quarter Marvell reported revenue of $2.01 billion (up 57.6% YoY) with EPS of $0.67 in line with estimates, though the company showed a small negative net margin (-1.43%).

Norges Bank bought a new position in shares of Marvell Technology, Inc. (NASDAQ:MRVL - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 9,259,852 shares of the semiconductor company's stock, valued at approximately $716,713,000. Norges Bank owned approximately 1.07% of Marvell Technology as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Taylor Frigon Capital Management LLC increased its holdings in shares of Marvell Technology by 16.5% in the 2nd quarter. Taylor Frigon Capital Management LLC now owns 33,605 shares of the semiconductor company's stock valued at $2,601,000 after acquiring an additional 4,748 shares during the period. Waterfront Wealth Inc. increased its holdings in shares of Marvell Technology by 21.5% in the second quarter. Waterfront Wealth Inc. now owns 18,394 shares of the semiconductor company's stock valued at $1,424,000 after purchasing an additional 3,258 shares during the period. BOCHK Asset Management Ltd purchased a new stake in shares of Marvell Technology during the second quarter worth approximately $1,486,000. Westbourne Investments Inc. raised its position in Marvell Technology by 442.4% during the 2nd quarter. Westbourne Investments Inc. now owns 21,695 shares of the semiconductor company's stock worth $1,679,000 after buying an additional 17,695 shares during the last quarter. Finally, Triton Financial Group Inc acquired a new stake in Marvell Technology in the second quarter valued at about $1,543,000. 83.51% of the stock is currently owned by institutional investors and hedge funds.

Marvell Technology Trading Up 1.7%

NASDAQ:MRVL opened at $89.24 on Friday. The business's 50-day moving average is $86.07 and its two-hundred day moving average is $76.07. The firm has a market capitalization of $76.93 billion, a PE ratio of -686.44, a price-to-earnings-growth ratio of 1.10 and a beta of 1.95. Marvell Technology, Inc. has a 12 month low of $47.08 and a 12 month high of $127.48. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.88 and a quick ratio of 1.44.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last issued its earnings results on Thursday, August 28th. The semiconductor company reported $0.67 earnings per share for the quarter, hitting the consensus estimate of $0.67. The company had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $2.01 billion. Marvell Technology had a positive return on equity of 11.01% and a negative net margin of 1.43%.The company's revenue was up 57.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.30 earnings per share. Research analysts predict that Marvell Technology, Inc. will post 0.91 earnings per share for the current fiscal year.

Marvell Technology announced that its Board of Directors has authorized a share repurchase plan on Wednesday, September 24th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the semiconductor company to reacquire up to 7.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its shares are undervalued.

Marvell Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 30th. Shareholders of record on Friday, October 10th were given a $0.06 dividend. The ex-dividend date of this dividend was Friday, October 10th. This represents a $0.24 annualized dividend and a yield of 0.3%. Marvell Technology's dividend payout ratio (DPR) is -184.62%.

Insider Activity

In other news, CFO Willem A. Meintjes bought 3,400 shares of Marvell Technology stock in a transaction dated Thursday, September 25th. The shares were acquired at an average cost of $78.03 per share, with a total value of $265,302.00. Following the completion of the transaction, the chief financial officer owned 132,159 shares in the company, valued at approximately $10,312,366.77. This trade represents a 2.64% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Sandeep Bharathi bought 3,400 shares of the firm's stock in a transaction dated Thursday, September 25th. The stock was purchased at an average price of $78.03 per share, with a total value of $265,302.00. Following the completion of the purchase, the insider directly owned 73,392 shares of the company's stock, valued at approximately $5,726,777.76. This trade represents a 4.86% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have purchased 27,200 shares of company stock worth $2,109,632. Company insiders own 0.19% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have commented on MRVL shares. Needham & Company LLC raised their target price on Marvell Technology from $80.00 to $95.00 and gave the company a "buy" rating in a report on Thursday, September 25th. HSBC started coverage on Marvell Technology in a research report on Monday. They issued a "hold" rating and a $85.00 price objective on the stock. Zacks Research raised shares of Marvell Technology from a "strong sell" rating to a "hold" rating in a research note on Wednesday, September 24th. JPMorgan Chase & Co. decreased their price target on Marvell Technology from $130.00 to $120.00 and set an "overweight" rating on the stock in a research note on Friday, August 29th. Finally, Oppenheimer lifted their price target on shares of Marvell Technology from $95.00 to $115.00 and gave the company an "outperform" rating in a report on Friday, October 10th. Three research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and fifteen have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $94.41.

About Marvell Technology

Marvell Technology, Inc, together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal, and digital signal processing functionality.

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