Marvell Technology (NASDAQ:MRVL) Trading Down 3.1% - Should You Sell?

Key Points

• Marvell Technology's share price decreased by 3.1% to $74.28 during trading, with a significant decline in trading volume reflecting reduced market activity.
• Analysts have adjusted their price targets for Marvell, with Goldman Sachs setting a target of $75.00, while Stifel Nicolaus and Raymond James revised theirs to $80.00 and $90.00, respectively, indicating mixed outlooks among experts.
• The company recently reported earnings of $0.62 EPS, surpassing expectations and showing a 63.3% increase in revenue year-over-year, despite a negative net margin.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) fell 3.1% on Wednesday . The stock traded as low as $74.05 and last traded at $74.28. 3,866,661 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 18,699,102 shares. The stock had previously closed at $76.63.

Wall Street Analyst Weigh In

A number of research firms have weighed in on MRVL. Wells Fargo & Company reduced their target price on Marvell Technology from $120.00 to $95.00 and set an "overweight" rating on the stock in a research note on Friday, May 30th. Susquehanna reduced their target price on shares of Marvell Technology from $110.00 to $90.00 and set a "positive" rating on the stock in a research report on Tuesday, May 27th. KeyCorp lowered their price target on Marvell Technology from $115.00 to $90.00 and set an "overweight" rating for the company in a report on Friday, May 30th. Melius Research upped their target price on Marvell Technology from $67.00 to $76.00 and gave the stock a "hold" rating in a report on Wednesday, June 18th. Finally, Loop Capital decreased their price objective on Marvell Technology from $110.00 to $90.00 and set a "buy" rating for the company in a report on Friday, May 30th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, twenty-two have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Marvell Technology presently has an average rating of "Moderate Buy" and an average price target of $94.70.

Marvell Technology Trading Down 0.2%

The stock has a market cap of $64.90 billion, a price-to-earnings ratio of -131.92, a PEG ratio of 0.83 and a beta of 1.83. The business has a fifty day simple moving average of $72.38 and a 200 day simple moving average of $75.45. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.94 and a current ratio of 1.30.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last posted its earnings results on Thursday, May 29th. The semiconductor company reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.01. Marvell Technology had a negative net margin of 7.56% and a positive return on equity of 8.42%. The business had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.88 billion. During the same quarter in the previous year, the business posted $0.24 EPS. The business's quarterly revenue was up 63.3% on a year-over-year basis. As a group, equities analysts anticipate that Marvell Technology, Inc. will post 0.91 EPS for the current 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 issued a dividend of $0.06 per share. The ex-dividend date of this dividend was Friday, July 11th. This represents a $0.24 annualized dividend and a dividend yield of 0.3%. Marvell Technology's payout ratio is -42.11%.

Insider Activity

In related news, CFO Willem A. Meintjes sold 1,500 shares of the stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $68.52, for a total value of $102,780.00. Following the completion of the transaction, the chief financial officer directly owned 121,348 shares of the company's stock, valued at $8,314,764.96. This represents a 1.22% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Mark Casper sold 3,000 shares of the stock in a transaction dated Friday, July 18th. The shares were 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 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 sold a total of 16,434 shares of company stock worth $1,097,826 over the last ninety days. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Marvell Technology

A number of hedge funds have recently modified their holdings of MRVL. Bank Pictet & Cie Europe AG raised its holdings in shares of Marvell Technology by 0.7% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 66,710 shares of the semiconductor company's stock valued at $7,368,000 after acquiring an additional 460 shares during the period. Aster Capital Management DIFC Ltd acquired a new stake in Marvell Technology during the 4th quarter valued at $139,000. Bank of Montreal Can lifted its holdings in shares of Marvell Technology by 191.1% in the fourth quarter. Bank of Montreal Can now owns 786,860 shares of the semiconductor company's stock valued at $86,909,000 after purchasing an additional 516,571 shares in the last quarter. Bernard Wealth Management Corp. acquired a new stake in shares of Marvell Technology in the fourth quarter worth $45,000. Finally, Advisory Services Network LLC grew its holdings in shares of Marvell Technology by 35.3% during the fourth quarter. Advisory Services Network LLC now owns 30,635 shares of the semiconductor company's stock valued at $3,384,000 after buying an additional 8,001 shares in the last quarter. 83.51% of the stock is currently owned by institutional investors and hedge funds.

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.