Marvell Technology (NASDAQ:MRVL) Shares Down 2.6% - Should You Sell?

Key Points

• Marvell shares fell 2.6% to $189.17, below their 50-day moving average of $243.42 but above the 200-day average of $153.61.
• Wall Street remains broadly positive, with a “Moderate Buy” consensus and an average price target of $245.45; UBS raised its target to $340.
• The company reported quarterly EPS in line with estimates at $0.80 and revenue of $2.42 billion, up 27.6% year over year. However, insiders sold nearly $9.8 million of stock over the past three months, while the shares trade at a relatively high P/E ratio of 64.78.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares traded down 2.6% on Monday . The stock traded as low as $181.76 and last traded at $189.17. Approximately 21,489,968 shares changed hands during trading, a decline of 28% from the average session volume of 29,689,510 shares. The stock had previously closed at $194.23.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Rosenblatt Securities reiterated a "buy" rating and issued a $240.00 target price on shares of Marvell Technology in a research note on Friday, June 12th. UBS Group upped their price objective on Marvell Technology from $230.00 to $340.00 and gave the company a "buy" rating in a research note on Monday, June 29th. Raymond James Financial set a $235.00 target price on Marvell Technology and gave the stock a "strong-buy" rating in a research report on Thursday, May 28th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $240.00 target price on shares of Marvell Technology in a research note on Thursday, May 28th. Finally, Erste Group Bank downgraded Marvell Technology from a "buy" rating to a "hold" rating in a research note on Wednesday, July 15th. Three analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $245.45.

Marvell Technology Price Performance

The business's 50 day moving average is $243.42 and its two-hundred day moving average is $153.61. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.66 and a current ratio of 3.28. The firm has a market capitalization of $165.49 billion, a PE ratio of 64.78, a price-to-earnings-growth ratio of 1.22 and a beta of 2.20.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last posted its earnings results on Wednesday, May 27th. The semiconductor company reported $0.80 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.80. Marvell Technology had a return on equity of 13.83% and a net margin of 28.99%.The firm had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.41 billion. During the same quarter in the prior year, the business posted $0.62 earnings per share. The business's quarterly revenue was up 27.6% on a year-over-year basis. Marvell Technology has set its Q2 2027 guidance at 0.880-0.980 EPS. Equities research analysts anticipate that Marvell Technology, Inc. will post 3.07 earnings per share for the current fiscal year.

Marvell Technology Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 30th. Stockholders of record on Friday, July 10th will be issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend is Friday, July 10th. Marvell Technology's dividend payout ratio is presently 8.22%.

Insider Buying and Selling

In related news, CFO Willem A. Meintjes sold 4,000 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $175.24, for a total transaction of $700,960.00. Following the sale, the chief financial officer owned 226,675 shares of the company's stock, valued at approximately $39,722,527. This represents a 1.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew J. Murphy sold 7,500 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $177.26, for a total transaction of $1,329,450.00. Following the completion of the sale, the chief executive officer owned 739,397 shares in the company, valued at $131,065,512.22. This represents a 1.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 45,981 shares of company stock valued at $9,835,542 in the last three months. Insiders own 0.12% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Arlington Trust Co LLC lifted its position in Marvell Technology by 24.1% during the second quarter. Arlington Trust Co LLC now owns 268 shares of the semiconductor company's stock valued at $80,000 after purchasing an additional 52 shares during the last quarter. GoalVest Advisory LLC grew its position in Marvell Technology by 26.0% in the second quarter. GoalVest Advisory LLC now owns 315 shares of the semiconductor company's stock worth $94,000 after acquiring an additional 65 shares in the last quarter. Mayflower Financial Advisors LLC increased its stake in Marvell Technology by 1.7% in the first quarter. Mayflower Financial Advisors LLC now owns 4,109 shares of the semiconductor company's stock valued at $407,000 after acquiring an additional 68 shares during the last quarter. Bell Investment Advisors Inc increased its stake in Marvell Technology by 12.9% in the first quarter. Bell Investment Advisors Inc now owns 628 shares of the semiconductor company's stock valued at $62,000 after acquiring an additional 72 shares during the last quarter. Finally, HBW Advisory Services LLC lifted its stake in Marvell Technology by 3.3% during the second quarter. HBW Advisory Services LLC now owns 2,270 shares of the semiconductor company's stock worth $676,000 after purchasing an additional 73 shares during the last quarter. Hedge funds and other institutional investors own 83.51% of the company's stock.

About Marvell Technology

Marvell Technology Group is a global semiconductor company that designs and develops integrated circuits and related software for data infrastructure, networking, storage and connectivity markets. The company's product portfolio includes system-on-chip (SoC) solutions, Ethernet physical-layer transceivers (PHYs), switch and switch silicon, optical interconnect components, storage controllers, and security processors. Marvell's technology is used to enable high-performance data centers, carrier networks, enterprise and cloud storage, as well as connectivity in automotive and industrial applications.

Founded in 1995 and headquartered in Santa Clara, California, Marvell has grown through both organic development and strategic acquisitions to broaden its capabilities across networking and data interconnect.

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