Marvell Technology (NASDAQ:MRVL) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Marvell Technology has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating due to recent stock performance concerns.
• Analysts have adjusted their price objectives, with KeyCorp lowering its target from $115 to $90, reflecting a more cautious outlook on Marvell's stock value.
• The company's quarterly earnings reported a 63.3% year-over-year revenue increase, but they had a negative net margin of 7.56%, highlighting ongoing financial challenges.

Zacks Research lowered shares of Marvell Technology (NASDAQ:MRVL - Free Report) from a hold rating to a strong sell rating in a report released on Tuesday,Zacks.com reports.

Other research analysts have also issued research reports about the company. B. Riley restated a "buy" rating and set a $115.00 target price (up previously from $110.00) on shares of Marvell Technology in a research report on Wednesday, June 18th. TD Cowen boosted their price target on Marvell Technology from $60.00 to $70.00 and gave the company a "buy" rating in a report on Friday, May 30th. Morgan Stanley restated an "equal weight" rating on shares of Marvell Technology in a report on Friday, August 8th. Bank of America upped their target price on Marvell Technology from $80.00 to $90.00 and gave the stock a "buy" rating in a report on Wednesday, June 18th. Finally, Piper Sandler restated an "overweight" rating and set a $85.00 target price (down previously from $95.00) on shares of Marvell Technology in a report on Friday, May 30th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $90.50.

Marvell Technology Trading Down 18.6%

NASDAQ MRVL traded down $14.36 during trading hours on Tuesday, hitting $62.87. 96,548,218 shares of the company were exchanged, compared to its average volume of 14,810,202. Marvell Technology has a 52 week low of $47.08 and a 52 week high of $127.48. The stock has a 50-day moving average price of $74.69 and a 200 day moving average price of $70.52. The stock has a market cap of $54.31 billion, a PE ratio of -483.62, a price-to-earnings-growth ratio of 0.68 and a beta of 1.83. The company has a quick ratio of 0.94, a current ratio of 1.30 and a debt-to-equity ratio of 0.22.

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 the consensus estimate of $0.67. Marvell Technology had a positive return on equity of 11.02% and a negative net margin of 1.43%.The business had revenue of $2.01 billion during the quarter, compared to analyst estimates of $2.01 billion. During the same quarter in the previous year, the business earned $0.30 earnings per share. The company'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. Analysts forecast that Marvell Technology will post 0.91 earnings per share for the current fiscal year.

Marvell Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Friday, July 11th were given a dividend of $0.06 per share. The ex-dividend date of this dividend was Friday, July 11th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.4%. Marvell Technology's dividend payout ratio is presently -184.62%.

Insider Transactions at Marvell Technology

In other news, CAO Panteha Dixon sold 1,283 shares of the company's stock in a transaction on Monday, June 16th. The stock was sold at an average price of $68.50, for a total transaction of $87,885.50. Following the transaction, the chief accounting officer directly owned 29,572 shares of the company's stock, valued at approximately $2,025,682. This represents a 4.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Willem A. Meintjes sold 1,500 shares of the company's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $68.52, for a total value of $102,780.00. Following the completion of the transaction, the chief financial officer directly owned 121,348 shares in the company, valued at approximately $8,314,764.96. The trade was a 1.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 5,783 shares of company stock valued at $407,716. Corporate insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Marvell Technology

Several hedge funds have recently made changes to their positions in MRVL. Bank Pictet & Cie Europe AG increased its position in shares of Marvell Technology by 0.7% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 66,710 shares of the semiconductor company's stock valued at $7,368,000 after acquiring an additional 460 shares during the period. Kovitz Investment Group Partners LLC acquired a new position in shares of Marvell Technology in the 4th quarter valued at $677,000. Caisse DE Depot ET Placement DU Quebec increased its position in shares of Marvell Technology by 3.2% in the 4th quarter. Caisse DE Depot ET Placement DU Quebec now owns 183,727 shares of the semiconductor company's stock valued at $20,293,000 after acquiring an additional 5,727 shares during the period. Keel Point LLC boosted its holdings in Marvell Technology by 8.9% in the fourth quarter. Keel Point LLC now owns 3,373 shares of the semiconductor company's stock valued at $373,000 after purchasing an additional 275 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in Marvell Technology by 3.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 38,607 shares of the semiconductor company's stock valued at $4,264,000 after purchasing an additional 1,362 shares during the last quarter. 83.51% of the stock is owned by institutional investors and hedge funds.

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.