Marvell Technology (NASDAQ:MRVL) Shares Gap Down - Time to Sell?

Key Points

• Marvell Technology shares dropped from a previous closing price of $77.28 to an opening price of $75.20 on Tuesday, trading at $76.10 later in the day with significant volume.
• Analyst ratings for Marvell vary significantly, with one sell rating, seven hold ratings, twenty-three buy ratings, and a consensus price target of $94.70.
• The company recently reported a strong quarterly earnings performance with a 63.3% year-over-year revenue increase, posting $1.90 billion against an estimated $1.88 billion.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $77.28, but opened at $75.20. Marvell Technology shares last traded at $76.10, with a volume of 2,808,487 shares trading hands.

Analysts Set New Price Targets

Several research firms recently weighed in on MRVL. Morgan Stanley reiterated an "equal weight" rating on shares of Marvell Technology in a report on Friday. Needham & Company LLC lowered shares of Marvell Technology from a "buy" rating to a "cautious" rating in a research note on Wednesday, July 16th. TD Cowen raised their price objective on shares of Marvell Technology from $60.00 to $70.00 and gave the stock a "buy" rating in a report on Friday, May 30th. Loop Capital cut their price objective on Marvell Technology from $110.00 to $90.00 and set a "buy" rating on the stock in a research report on Friday, May 30th. Finally, KeyCorp decreased their target price on Marvell Technology from $115.00 to $90.00 and set an "overweight" rating for the company in a research report on Friday, May 30th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, twenty-three have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $94.70.

Marvell Technology Stock Performance

The business's 50 day simple moving average is $73.30 and its two-hundred day simple moving average is $73.76. The firm has a market capitalization of $67.03 billion, a PE ratio of -136.09, a price-to-earnings-growth ratio of 0.84 and a beta of 1.83. The company has a current ratio of 1.30, a quick ratio of 0.94 and a debt-to-equity ratio of 0.22.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last issued its quarterly earnings data on Thursday, May 29th. The semiconductor company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.61 by $0.01. Marvell Technology had a positive return on equity of 8.42% and a negative net margin of 7.56%. The company had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.88 billion. During the same quarter in the previous year, the company posted $0.24 earnings per share. Marvell Technology's revenue was up 63.3% compared to the same quarter last year. Research analysts expect that Marvell Technology, Inc. will post 0.91 earnings per share for the current fiscal year.

Marvell Technology Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Friday, July 11th were issued a $0.06 dividend. 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 0.3%. Marvell Technology's dividend payout ratio (DPR) is presently -42.11%.

Insider Buying and Selling at Marvell Technology

In other news, CFO Willem A. Meintjes sold 1,500 shares of the company's stock in a transaction on Thursday, May 15th. The stock was sold at an average price of $64.75, for a total value of $97,125.00. Following the completion of the sale, the chief financial officer directly owned 122,848 shares in the company, valued at $7,954,408. This represents a 1.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Mark Casper sold 3,000 shares of the firm's stock in a transaction on Friday, July 18th. The stock was sold at an average price of $72.35, for a total value of $217,050.00. Following the completion of the transaction, the executive vice president directly owned 17,163 shares in the company, valued at approximately $1,241,743.05. This represents a 14.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,148 shares of company stock worth $1,014,236. 0.33% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Hughes Financial Services LLC purchased a new position in Marvell Technology during the first quarter valued at approximately $26,000. Rossby Financial LCC purchased a new position in shares of Marvell Technology during the 1st quarter valued at $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 valued at $27,000 after buying an additional 388 shares in the last quarter. Game Plan Financial Advisors LLC bought a new position in Marvell Technology in the 2nd quarter worth $27,000. Finally, Vision Financial Markets LLC purchased a new stake in Marvell Technology in the 1st quarter worth $28,000. Institutional investors own 83.51% of the company's stock.

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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