Marvell Technology (NASDAQ:MRVL) Stock Price Down 2.4% - Should You Sell?

Key Points

• Marvell Technology's stock price fell by 2.4% to $85.84 with a significant reduction in trading volume, suggesting decreased investor activity.
• Despite the recent decline, several brokerages raised their price targets for MRVL, with an average target of $93.06, indicating optimism about the company's future performance.
• Marvell announced a $5 billion stock buyback plan and a quarterly dividend of $0.06, reflecting the management's belief in the stock's undervaluation.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares dropped 2.4% during trading on Monday . The stock traded as low as $85.45 and last traded at $85.84. Approximately 15,743,767 shares changed hands during mid-day trading, a decline of 19% from the average daily volume of 19,510,602 shares. The stock had previously closed at $87.95.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on MRVL. Oppenheimer lifted their price objective on Marvell Technology from $95.00 to $115.00 and gave the stock an "outperform" rating in a report on Friday, October 10th. Deutsche Bank Aktiengesellschaft lifted their price objective on Marvell Technology from $80.00 to $90.00 and gave the stock a "buy" rating in a report on Thursday, September 25th. Needham & Company LLC lifted their price objective on Marvell Technology from $80.00 to $95.00 and gave the stock a "buy" rating in a report on Thursday, September 25th. Wall Street Zen raised Marvell Technology from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Finally, Rosenblatt Securities reduced their price objective on Marvell Technology from $124.00 to $95.00 and set a "buy" rating for the company in a report on Friday, August 29th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and thirteen have given a Hold rating to the company. Based on data from MarketBeat, Marvell Technology has an average rating of "Moderate Buy" and an average price target of $93.06.

Marvell Technology Stock Performance

The company has a market capitalization of $74.00 billion, a price-to-earnings ratio of -660.31, a PEG ratio of 1.07 and a beta of 1.94. The stock has a fifty day moving average price of $76.73 and a two-hundred day moving average price of $70.02. The company has a quick ratio of 1.44, a current ratio of 1.88 and a debt-to-equity ratio of 0.30.

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

Marvell Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 30th. Investors of record on Friday, October 10th will be paid 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 dividend payout ratio is presently -184.62%.

Marvell Technology declared that its board has approved a stock buyback plan on Wednesday, September 24th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the semiconductor company to purchase up to 7.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Willem A. Meintjes purchased 3,400 shares of the stock in a transaction on Thursday, September 25th. The stock was purchased at an average price of $78.03 per share, with a total value of $265,302.00. Following the completion of the transaction, the chief financial officer owned 132,159 shares in the company, valued at approximately $10,312,366.77. The trade was a 2.64% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Sandeep Bharathi purchased 3,400 shares of the stock in a transaction on Thursday, September 25th. The shares were purchased at an average cost of $78.03 per share, with a total value of $265,302.00. Following the transaction, the insider owned 73,392 shares of the company's stock, valued at $5,726,777.76. This trade represents a 4.86% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have bought 27,200 shares of company stock valued at $2,109,632. 0.33% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. XML Financial LLC acquired a new position in shares of Marvell Technology during the third quarter worth about $209,000. Accurate Wealth Management LLC lifted its stake in shares of Marvell Technology by 3.7% in the third quarter. Accurate Wealth Management LLC now owns 4,308 shares of the semiconductor company's stock worth $372,000 after acquiring an additional 154 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in shares of Marvell Technology by 9.2% in the third quarter. Allspring Global Investments Holdings LLC now owns 1,741,274 shares of the semiconductor company's stock worth $146,075,000 after acquiring an additional 146,674 shares in the last quarter. Sax Wealth Advisors LLC lifted its stake in shares of Marvell Technology by 6.4% in the third quarter. Sax Wealth Advisors LLC now owns 18,463 shares of the semiconductor company's stock worth $1,552,000 after acquiring an additional 1,106 shares in the last quarter. Finally, Smith Salley Wealth Management lifted its stake in shares of Marvell Technology by 0.8% in the third quarter. Smith Salley Wealth Management now owns 286,124 shares of the semiconductor company's stock worth $24,054,000 after acquiring an additional 2,312 shares in the last quarter. 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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