Marvell Technology (NASDAQ:MRVL) Posts Earnings Results

Key Points

• Marvell beat EPS at $0.76 (vs. $0.74 expected) and reported $2.07B revenue, but still showed a negative net margin (-1.43%); the stock jumped to $92.89 on heavy volume after the report.
• The board authorized a $5.0 billion share buyback (up to ~7.8% of shares) while insiders including the CEO and CFO purchased shares, increasing their ownership.
• Wall Street sentiment is cautiously positive with a consensus rating of “Moderate Buy” and a $94.72 average target price.

Marvell Technology (NASDAQ:MRVL - Get Free Report) issued its earnings results on Tuesday. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.74 by $0.02, FiscalAI reports. Marvell Technology had a positive return on equity of 11.01% and a negative net margin of 1.43%.The business had revenue of $2.07 billion during the quarter, compared to analysts' expectations of $2.06 billion.

Marvell Technology Price Performance

MRVL stock traded up $1.79 during trading on Tuesday, hitting $92.89. The company had a trading volume of 27,479,610 shares, compared to its average volume of 19,122,516. The business has a 50 day moving average of $86.38 and a 200 day moving average of $76.40. The firm has a market capitalization of $80.08 billion, a price-to-earnings ratio of -714.54, a P/E/G ratio of 1.10 and a beta of 1.95. Marvell Technology has a fifty-two week low of $47.08 and a fifty-two week high of $127.48. 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 Dividend Announcement

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

Wall Street Analyst Weigh In

Several research analysts have commented on MRVL shares. Bank of America reaffirmed a "neutral" rating and issued a $78.00 price objective (down previously from $90.00) on shares of Marvell Technology in a research report on Friday, August 29th. Zacks Research raised shares of Marvell Technology from a "strong sell" rating to a "hold" rating in a report on Wednesday, September 24th. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $75.00 price target on shares of Marvell Technology in a research note on Friday, August 29th. Cowen cut shares of Marvell Technology from a "buy" rating to a "hold" rating in a research report on Tuesday, September 30th. Finally, Deutsche Bank Aktiengesellschaft raised their target price on Marvell Technology from $80.00 to $90.00 and gave the company a "buy" rating in a research note on Thursday, September 25th. Three investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and fifteen have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $94.72.

Insider Transactions at Marvell Technology

In other Marvell Technology news, CEO Matthew J. Murphy purchased 13,600 shares of the business's stock in a transaction on Thursday, September 25th. The stock was bought 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 of the company's stock, valued at $20,709,226.33. The trade was a 5.33% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Willem A. Meintjes acquired 3,400 shares of the stock in a transaction dated Thursday, September 25th. The stock was acquired at an average cost of $78.03 per share, for a total transaction of $265,302.00. Following the purchase, the chief financial officer directly owned 132,159 shares in the company, valued at approximately $10,312,366.77. The trade was a 2.64% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased a total of 27,200 shares of company stock worth $2,109,632 over the last 90 days. 0.19% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Marvell Technology

Several large investors have recently modified their holdings of the stock. GeoWealth Management LLC lifted its stake in Marvell Technology by 5.1% during the third quarter. GeoWealth Management LLC now owns 2,808 shares of the semiconductor company's stock valued at $236,000 after buying an additional 135 shares in the last quarter. Gallagher Fiduciary Advisors LLC raised its holdings in shares of Marvell Technology by 4.6% during the second quarter. Gallagher Fiduciary Advisors LLC now owns 3,526 shares of the semiconductor company's stock valued at $273,000 after acquiring an additional 156 shares during the period. L2 Asset Management LLC lifted its position in shares of Marvell Technology by 4.5% in the 3rd quarter. L2 Asset Management LLC now owns 4,042 shares of the semiconductor company's stock valued at $340,000 after acquiring an additional 174 shares in the last quarter. United Capital Financial Advisors LLC boosted its stake in Marvell Technology by 1.7% in the 3rd quarter. United Capital Financial Advisors LLC now owns 11,180 shares of the semiconductor company's stock worth $940,000 after purchasing an additional 188 shares during the period. Finally, BOKF NA boosted its stake in Marvell Technology by 1.5% in the 3rd quarter. BOKF NA now owns 17,816 shares of the semiconductor company's stock worth $1,498,000 after purchasing an additional 257 shares during the period. 83.51% of the stock is owned by institutional investors.

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

Marvell Technology Company Profile

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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