Marvell Technology (NASDAQ:MRVL) Shares Up 6.4% - What's Next?

Key Points

• Marvell Technology shares rose 6.4% in midday trading, reaching as high as $199.33 after closing at $188.68 the prior session, though trading volume was well below average.
• Several analysts turned more bullish on the stock, with firms like Jefferies, Oppenheimer, Wells Fargo, and Needham all raising price targets; the consensus rating is now Moderate Buy with an average target price of $245.45.
• Recent results showed solid earnings and revenue growth: Marvell reported EPS of $0.80, matched estimates, and revenue of $2.42 billion, up 27.6% year over year. The company also announced a quarterly dividend of $0.06 per share.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) rose 6.4% during mid-day trading on Monday . The stock traded as high as $199.33 and last traded at $200.6870. 10,422,889 shares traded hands during trading, a decline of 65% from the average session volume of 29,981,412 shares. The stock had previously closed at $188.68.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on MRVL shares. Jefferies Financial Group lifted their price target on Marvell Technology from $149.00 to $235.00 and gave the stock a "buy" rating in a research report on Thursday, May 28th. Oppenheimer raised their price objective on Marvell Technology from $200.00 to $250.00 and gave the company an "outperform" rating in a research note on Thursday, May 28th. Melius Research set a $220.00 target price on Marvell Technology in a report on Monday, May 18th. Wells Fargo & Company boosted their target price on Marvell Technology from $195.00 to $240.00 and gave the company an "overweight" rating in a research report on Thursday, May 28th. Finally, Needham & Company LLC raised their price target on Marvell Technology from $118.00 to $270.00 and gave the stock a "buy" rating in a research report on Thursday, May 28th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned 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 an average target price of $245.45.

Marvell Technology Stock Performance

The company has a quick ratio of 2.66, a current ratio of 3.28 and a debt-to-equity ratio of 0.27. The business has a 50 day moving average price of $240.52 and a 200 day moving average price of $149.51. The stock has a market cap of $172.67 billion, a P/E ratio of 67.63, a PEG ratio of 1.24 and a beta of 2.20.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $0.80 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.80. Marvell Technology had a return on equity of 13.83% and a net margin of 28.99%.The company had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.41 billion. During the same quarter in the previous year, the business earned $0.62 EPS. Marvell Technology's revenue was up 27.6% compared to the same quarter last year. Marvell Technology has set its Q2 2027 guidance at 0.880-0.980 EPS. As a group, sell-side analysts expect that Marvell Technology, Inc. will post 3.07 EPS for the current year.

Marvell Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 30th. Investors of record on Friday, July 10th will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend is Friday, July 10th. Marvell Technology's dividend payout ratio (DPR) is currently 8.22%.

Insider Buying and Selling

In other news, CFO Willem A. Meintjes sold 4,000 shares of the firm'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 transaction, the chief financial officer directly owned 226,675 shares of the company's stock, valued at approximately $39,722,527. This trade represents a 1.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Durn sold 2,250 shares of Marvell Technology stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $281.01, for a total transaction of $632,272.50. Following the sale, the chief financial officer directly owned 6,902 shares of the company's stock, valued at $1,939,531.02. This represents a 24.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 45,981 shares of company stock worth $9,835,542 over the last 90 days. Corporate insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On Marvell Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in MRVL. Norges Bank purchased a new position in Marvell Technology during the 4th quarter worth $895,455,000. Rafferty Asset Management LLC boosted its holdings in Marvell Technology by 111.0% in the second quarter. Rafferty Asset Management LLC now owns 5,810,359 shares of the semiconductor company's stock worth $449,722,000 after acquiring an additional 3,056,808 shares in the last quarter. Capital Research Global Investors grew its stake in shares of Marvell Technology by 177.9% during the fourth quarter. Capital Research Global Investors now owns 4,551,249 shares of the semiconductor company's stock worth $386,765,000 after acquiring an additional 2,913,368 shares during the last quarter. AQR Capital Management LLC grew its stake in shares of Marvell Technology by 397.3% during the fourth quarter. AQR Capital Management LLC now owns 2,172,943 shares of the semiconductor company's stock worth $184,657,000 after acquiring an additional 1,736,006 shares during the last quarter. Finally, State Street Corp increased its holdings in shares of Marvell Technology by 7.9% during the fourth quarter. State Street Corp now owns 22,834,816 shares of the semiconductor company's stock valued at $1,940,503,000 after acquiring an additional 1,677,724 shares in the last quarter. 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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