Marvell Technology (NASDAQ:MRVL) Authorizes Share Repurchase Plan

Key Points

• Marvell Technology's board has authorized a $5.00 billion stock repurchase plan, allowing the company to buy up to 7.8% of its outstanding shares, indicating management's belief in the stock's undervaluation.
• The company's stock rose by 7.3% to reach $80.09 during midday trading, with significant trading volume of over 50 million shares.
• Marvell Technology has declared a quarterly dividend of $0.06 per share, to be paid on October 30th, reflecting an annualized yield of 0.3%.

Marvell Technology (NASDAQ:MRVL - Get Free Report) declared that its board has authorized a stock repurchase plan on Wednesday, September 24th, RTT News reports. The company plans to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to buy up to 7.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Marvell Technology Stock Up 7.3%

Marvell Technology stock traded up $5.47 during midday trading on Wednesday, reaching $80.09. The stock had a trading volume of 50,350,507 shares, compared to its average volume of 26,420,310. The firm's fifty day simple moving average is $72.74 and its 200-day simple moving average is $67.39. Marvell Technology has a 1-year low of $47.08 and a 1-year high of $127.48. The stock has a market capitalization of $69.05 billion, a P/E ratio of -616.08, a price-to-earnings-growth ratio of 0.90 and a beta of 1.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.44 and a current ratio of 1.88.

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

Marvell Technology Dividend Announcement

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

Wall Street Analyst Weigh In

MRVL has been the topic of several analyst reports. BNP Paribas raised Marvell Technology to a "strong-buy" rating in a research note on Friday, August 29th. Evercore ISI cut their target price on Marvell Technology from $133.00 to $122.00 and set an "outperform" rating on the stock in a research note on Friday, August 29th. Rosenblatt Securities cut their target price on Marvell Technology from $124.00 to $95.00 and set a "buy" rating on the stock in a research note on Friday, August 29th. Redburn Atlantic initiated coverage on Marvell Technology in a research note on Wednesday, May 28th. They issued a "neutral" rating and a $67.00 target price on the stock. Finally, JPMorgan Chase & Co. cut their target price 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. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Marvell Technology has a consensus rating of "Moderate Buy" and a consensus price target of $90.50.

Insider Activity at Marvell Technology

In other news, EVP Mark Casper sold 3,000 shares of Marvell Technology stock in a transaction that occurred on Friday, July 18th. The stock was sold at an average price of $72.35, for a total transaction of $217,050.00. Following the completion of the transaction, the executive vice president directly owned 17,163 shares in the company, valued at approximately $1,241,743.05. The trade was a 14.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.19% of the company's stock.

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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