Marvell Technology (NASDAQ:MRVL) Stock Price Down 2% - Here's Why

Key Points

• Shares of Marvell Technology fell by 2%, closing at $90.68, with trading volume significantly down by 24% from average levels.
• Analysts have mixed views on Marvell, with price targets ranging from a high of $124 to a low of $78, and a majority rating it as a Moderate Buy.
• The company announced a quarterly dividend of $0.06, payable on October 30th, and initiated a stock repurchase program allowing for the buyback of up to $5 billion in shares, which could indicate undervaluation.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares traded down 2% during trading on Thursday . The company traded as low as $90.52 and last traded at $90.68. 14,839,753 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 19,561,318 shares. The stock had previously closed at $92.50.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Rosenblatt Securities dropped their price target on Marvell Technology from $124.00 to $95.00 and set a "buy" rating on the stock in a research report on Friday, August 29th. Bank of America reaffirmed a "neutral" rating and issued a $78.00 price objective (down from $90.00) on shares of Marvell Technology in a research report on Friday, August 29th. BNP Paribas raised Marvell Technology to a "strong-buy" rating in a research report on Friday, August 29th. JPMorgan Chase & Co. lowered their price objective on Marvell Technology from $130.00 to $120.00 and set an "overweight" rating on the stock in a research report on Friday, August 29th. Finally, Needham & Company LLC upped their price objective on Marvell Technology from $80.00 to $95.00 and gave the company a "buy" rating in a research report on Thursday, September 25th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $91.67.

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 stock has a market capitalization of $78.18 billion, a PE ratio of -697.54, a price-to-earnings-growth ratio of 1.13 and a beta of 1.94. The firm has a 50 day moving average price of $75.16 and a 200 day moving average price of $68.68.

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

Marvell Technology Announces Dividend

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

Marvell Technology announced that its board has approved a stock repurchase program on Wednesday, September 24th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the semiconductor company to repurchase up to 7.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, COO Chris Koopmans bought 6,800 shares of the company's stock in a transaction that occurred on Thursday, September 25th. The stock was bought at an average price of $78.03 per share, with a total value of $530,604.00. Following the acquisition, the chief operating officer owned 104,825 shares of the company's stock, valued at approximately $8,179,494.75. This represents a 6.94% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Mark Casper sold 3,000 shares of the company's stock in a transaction on Friday, July 18th. The stock was sold at an average price of $72.35, for a total transaction of $217,050.00. Following the completion of the transaction, the executive vice president directly owned 17,163 shares of the company's stock, valued at $1,241,743.05. This represents a 14.88% decrease in their position. The disclosure for this sale can be found here. Insiders have purchased a total of 27,200 shares of company stock worth $2,109,632 in the last three months. Corporate insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of MRVL. Hughes Financial Services LLC bought a new position in Marvell Technology in the 1st quarter worth $26,000. Rossby Financial LCC bought a new position in shares of Marvell Technology during the 1st quarter valued at about $27,000. Financial Connections Group Inc. boosted its holdings 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 purchasing an additional 388 shares during the last quarter. Game Plan Financial Advisors LLC bought a new position in shares of Marvell Technology during the 2nd quarter valued at about $27,000. Finally, Vision Financial Markets LLC bought a new position in shares of Marvell Technology during the 1st quarter valued at about $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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