Marvell Technology (NASDAQ:MRVL) Shares Gap Down Following Analyst Downgrade

Key Points

• Marvell Technology's share price dropped significantly after Rosenblatt Securities downgraded its price target from $124.00 to $95.00, opening at $64.53 down from a previous close of $77.23.
• Multiple analysts have issued revised price targets, with Loop Capital and Deutsche Bank also lowering theirs, reflecting a general trend in reduced expectations for the stock.
• Despite the downgrades, the majority of analysts maintain a "buy" rating, with the average target price now set at $92.26.

Shares of Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) gapped down prior to trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $130.00 to $120.00. The stock had previously closed at $77.23, but opened at $64.53. JPMorgan Chase & Co. currently has an overweight rating on the stock. Marvell Technology shares last traded at $65.21, with a volume of 21,006,000 shares traded.

Several other research firms have also weighed in on MRVL. Melius Research lifted their target price on shares of Marvell Technology from $67.00 to $76.00 and gave the company a "hold" rating in a report on Wednesday, June 18th. Loop Capital cut their target price on shares of Marvell Technology from $110.00 to $90.00 and set a "buy" rating for the company in a report on Friday, May 30th. KeyCorp cut their price target on shares of Marvell Technology from $115.00 to $90.00 and set an "overweight" rating for the company in a report on Friday, May 30th. Bank of America reaffirmed a "neutral" rating and set a $78.00 target price (down previously from $90.00) on shares of Marvell Technology in a report on Friday. Finally, Susquehanna dropped their target price on shares of Marvell Technology from $110.00 to $90.00 and set a "positive" rating for the company in a report on Tuesday, May 27th. One research 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 issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $90.50.

Insider Buying and Selling at Marvell Technology

In other Marvell Technology news, EVP Mark Casper sold 3,000 shares of the company's stock in a transaction dated Friday, July 18th. The shares were sold at an average price of $72.35, for a total value of $217,050.00. Following the transaction, the executive vice president owned 17,163 shares of the company's stock, valued at $1,241,743.05. This represents a 14.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CAO Panteha Dixon sold 1,283 shares of the stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $68.50, for a total transaction of $87,885.50. Following the sale, the chief accounting officer directly owned 29,572 shares in the company, valued at $2,025,682. This represents a 4.16% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 5,783 shares of company stock valued at $407,716 over the last 90 days. 0.33% of the stock is owned by insiders.

Institutional Trading of Marvell Technology

Hedge funds have recently made changes to their positions in the business. Hughes Financial Services LLC purchased a new stake in shares of Marvell Technology during the first quarter worth approximately $26,000. Rossby Financial LCC purchased a new stake in shares of Marvell Technology during the first quarter worth approximately $27,000. Financial Connections Group Inc. increased its stake in shares of Marvell Technology by 776.0% during the first quarter. Financial Connections Group Inc. now owns 438 shares of the semiconductor company's stock worth $27,000 after buying an additional 388 shares during the period. Game Plan Financial Advisors LLC purchased a new stake in shares of Marvell Technology during the second quarter worth approximately $27,000. Finally, Vision Financial Markets LLC purchased a new stake in shares of Marvell Technology during the first quarter worth approximately $28,000. Institutional investors and hedge funds own 83.51% of the company's stock.

Marvell Technology Price Performance

The stock's 50 day moving average is $74.53 and its two-hundred day moving average is $69.98. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.30 and a quick ratio of 0.94. The stock has a market capitalization of $54.56 billion, a PE ratio of -485.05, a price-to-earnings-growth ratio of 0.68 and a beta of 1.85.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last posted its quarterly earnings data 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 11.02% 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 prior year, the company earned $0.30 earnings per share. The company's revenue 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. As a group, sell-side analysts forecast that Marvell Technology, Inc. will post 0.91 earnings per share for the current fiscal year.

Marvell Technology Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Friday, July 11th were given a $0.06 dividend. The ex-dividend date 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 (DPR) is currently -184.62%.

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.