Marvell Technology (NASDAQ:MRVL) Shares Down 3.8% - Here's What Happened

Key Points

• Marvell Technology's stock fell by 3.8% to $81.05 during mid-day trading, a decrease from its previous close of $84.26, amidst a volume drop of 1% from average daily trading.
• Analysts have mixed views, with Needham & Company raising their price target to $95, while other firms have lowered theirs, culminating in a consensus target of $93.06 and an overall "Moderate Buy" rating.
• The company recently announced a $5 billion stock buyback plan, indicating management's belief that its stock is undervalued, alongside a declared quarterly dividend of $0.06 per share.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report)'s stock price was down 3.8% during mid-day trading on Wednesday . The company traded as low as $79.06 and last traded at $81.05. Approximately 19,198,877 shares traded hands during mid-day trading, a decline of 1% from the average daily volume of 19,479,857 shares. The stock had previously closed at $84.26.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Needham & Company LLC lifted their price target on Marvell Technology from $80.00 to $95.00 and gave the stock a "buy" rating in a report on Thursday, September 25th. Evercore ISI decreased their price target on Marvell Technology from $133.00 to $122.00 and set an "outperform" rating for the company in a report on Friday, August 29th. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $75.00 price target on shares of Marvell Technology in a report on Friday, August 29th. Wall Street Zen raised Marvell Technology from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Finally, Wells Fargo & Company decreased their price target on Marvell Technology from $95.00 to $90.00 and set an "overweight" rating for the company in a report on Friday, August 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and thirteen have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $93.06.

Marvell Technology Price Performance

The company has a current ratio of 1.88, a quick ratio of 1.44 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $69.87 billion, a PE ratio of -623.46, a P/E/G ratio of 1.05 and a beta of 1.94. The company has a fifty day moving average price of $76.86 and a two-hundred day moving average price of $70.12.

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

Marvell Technology Announces Dividend

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

Marvell Technology declared that its Board of Directors has initiated a stock buyback plan on Wednesday, September 24th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to buy up to 7.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Willem A. Meintjes purchased 3,400 shares of the company's stock in a transaction that occurred on Thursday, September 25th. The shares were purchased at an average price of $78.03 per share, for a total transaction of $265,302.00. Following the transaction, the chief financial officer directly owned 132,159 shares of the company's stock, valued at approximately $10,312,366.77. The trade was a 2.64% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Matthew J. Murphy bought 13,600 shares of the business's stock in a transaction dated Thursday, September 25th. The shares were acquired at an average cost of $77.09 per share, with a total value of $1,048,424.00. Following the completion of the purchase, the chief executive officer owned 268,637 shares in the company, valued at approximately $20,709,226.33. This represents a 5.33% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have bought 27,200 shares of company stock worth $2,109,632. Insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Marvell Technology

A number of institutional investors and hedge funds have recently modified their holdings of MRVL. Hughes Financial Services LLC acquired a new stake in shares of Marvell Technology in the 1st quarter worth approximately $26,000. Rossby Financial LCC purchased a new position in shares of Marvell Technology during the 1st quarter worth $27,000. Financial Connections Group Inc. lifted its stake in shares of Marvell Technology by 776.0% during the 1st quarter. Financial Connections Group Inc. now owns 438 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 388 shares during the period. Game Plan Financial Advisors LLC purchased a new position in shares of Marvell Technology during the 2nd quarter worth $27,000. Finally, Vision Financial Markets LLC purchased a new position in shares of Marvell Technology during the 1st quarter worth $28,000. Institutional investors and hedge funds own 83.51% 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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