Insider Buying: Marvell Technology (NASDAQ:MRVL) CEO Acquires 13,600 Shares of Stock

Key Points

• CEO Matthew Murphy of Marvell Technology purchased 13,600 shares, increasing his ownership to 268,637 shares, reflecting a 5.33% increase in his stake.
• The company declared a $0.06 quarterly dividend to be paid on October 30th, which reflects an annualized yield of 0.3%, though they currently show a negative dividend payout ratio.
• Marvell Technology announced a $5.00 billion share buyback plan to repurchase up to 7.8% of its shares, indicating management's belief in the stock's undervaluation.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) CEO Matthew Murphy purchased 13,600 shares of the stock in a transaction that occurred on Thursday, September 25th. The stock was acquired at an average cost of $77.09 per share, with a total value of $1,048,424.00. Following the acquisition, the chief executive officer owned 268,637 shares in the company, valued at $20,709,226.33. The trade was a 5.33% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website.

Marvell Technology Trading Up 3.3%

Shares of NASDAQ:MRVL traded up $2.60 during trading on Thursday, reaching $82.69. The company's stock had a trading volume of 28,523,021 shares, compared to its average volume of 19,484,063. The company has a current ratio of 1.88, a quick ratio of 1.44 and a debt-to-equity ratio of 0.30. Marvell Technology, Inc. has a 12 month low of $47.08 and a 12 month high of $127.48. The firm's 50 day simple moving average is $72.74 and its two-hundred day simple moving average is $67.39. The stock has a market capitalization of $71.29 billion, a PE ratio of -636.72, a price-to-earnings-growth ratio of 0.90 and a beta of 1.85.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last announced its quarterly earnings results on Thursday, August 28th. The semiconductor company reported $0.67 EPS for the quarter, meeting analysts' consensus estimates of $0.67. Marvell Technology had a negative net margin of 1.43% and a positive return on equity of 11.01%. The firm had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $2.01 billion. During the same quarter last year, the firm earned $0.30 EPS. The firm's revenue for the quarter was up 57.6% compared to the same quarter last year. Marvell Technology has set its Q3 2026 guidance at 0.690-0.790 EPS. On average, research analysts predict that Marvell Technology, Inc. will post 0.91 EPS for the current fiscal year.

Marvell Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 30th. Investors of record on Friday, October 10th will be issued a $0.06 dividend. The ex-dividend date of this dividend is Friday, October 10th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.3%. Marvell Technology's dividend payout ratio (DPR) is presently -184.62%.

Marvell Technology declared that its Board of Directors has approved a share buyback plan on Wednesday, September 24th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the semiconductor company to buy up to 7.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Marvell Technology

Several institutional investors have recently bought and sold shares of the business. First Horizon Advisors Inc. increased its holdings in Marvell Technology by 6.9% during the second quarter. First Horizon Advisors Inc. now owns 2,115 shares of the semiconductor company's stock valued at $164,000 after buying an additional 137 shares during the period. Richards Merrill & Peterson Inc. grew its holdings in Marvell Technology by 4.0% in the second quarter. Richards Merrill & Peterson Inc. now owns 3,606 shares of the semiconductor company's stock worth $279,000 after purchasing an additional 139 shares during the last quarter. Retirement Planning Group LLC NY grew its holdings in Marvell Technology by 4.0% in the second quarter. Retirement Planning Group LLC NY now owns 3,722 shares of the semiconductor company's stock worth $288,000 after purchasing an additional 142 shares during the last quarter. Harbor Capital Advisors Inc. grew its holdings in Marvell Technology by 0.8% in the second quarter. Harbor Capital Advisors Inc. now owns 19,945 shares of the semiconductor company's stock worth $1,544,000 after purchasing an additional 151 shares during the last quarter. Finally, Mayflower Financial Advisors LLC grew its holdings in Marvell Technology by 3.4% in the second quarter. Mayflower Financial Advisors LLC now owns 4,579 shares of the semiconductor company's stock worth $354,000 after purchasing an additional 151 shares during the last quarter. 83.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have issued reports on MRVL. B. Riley reissued a "buy" rating and issued a $115.00 price objective (up previously from $110.00) on shares of Marvell Technology in a research note on Wednesday, June 18th. Oppenheimer reissued an "outperform" rating and issued a $95.00 price objective on shares of Marvell Technology in a research note on Friday, August 29th. Piper Sandler reissued an "overweight" rating and issued a $85.00 price objective (down previously from $95.00) on shares of Marvell Technology in a research note on Friday, May 30th. Jefferies Financial Group decreased their price objective on shares of Marvell Technology from $90.00 to $80.00 and set a "buy" rating for the company in a research note on Friday, August 29th. Finally, BNP Paribas raised shares of Marvell Technology to a "strong-buy" rating in a research note on Friday, August 29th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $91.17.

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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