Marvell Technology (NASDAQ:MRVL) Stock Price Down 4.5% Following Insider Selling

Key Points

• Marvell Technology shares fell 4.5% in midday trading after insider selling news, with the stock last seen at $168.93 versus the prior close of $176.89.
• CFO Willem A. Meintjes sold 4,000 shares and CEO Matthew J. Murphy sold 7,500 shares, both through pre-arranged Rule 10b5-1 plans. The filings showed small percentage reductions in each executive’s holdings.
• Despite the selloff, analysts remain broadly positive on Marvell, with a Moderate Buy consensus and an average price target of $135.30. The company also recently beat quarterly earnings and revenue estimates and reported year-over-year revenue growth of 22.1%.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares traded down 4.5% during mid-day trading on Monday following insider selling activity. The stock traded as low as $165.10 and last traded at $168.93. 24,354,113 shares changed hands during mid-day trading, an increase of 15% from the average session volume of 21,093,275 shares. The stock had previously closed at $176.89.

Specifically, CFO Willem A. Meintjes sold 4,000 shares of the company's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $175.24, for a total transaction of $700,960.00. Following the completion of the transaction, the chief financial officer owned 226,675 shares of the company's stock, valued at $39,722,527. This represents a 1.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew J. Murphy sold 7,500 shares of the company's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $177.26, for a total transaction of $1,329,450.00. Following the transaction, the chief executive officer directly owned 739,397 shares of the company's stock, valued at approximately $131,065,512.22. This represents a 1.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Craig Hallum upped their price objective on shares of Marvell Technology from $141.00 to $164.00 and gave the company a "buy" rating in a research note on Friday, March 6th. Evercore reaffirmed an "outperform" rating and set a $133.00 price objective on shares of Marvell Technology in a research note on Wednesday, March 4th. KGI Securities upgraded Marvell Technology from a "neutral" rating to an "outperform" rating and set a $110.00 price target for the company in a research note on Friday, March 6th. Susquehanna restated a "positive" rating on shares of Marvell Technology in a research note on Tuesday, February 24th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Marvell Technology in a research note on Friday, March 27th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $135.30.

Marvell Technology Price Performance

The company has a 50-day moving average price of $125.27 and a two-hundred day moving average price of $98.83. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.01 and a quick ratio of 1.58. The company has a market cap of $151.59 billion, a PE ratio of 54.85, a P/E/G ratio of 1.48 and a beta of 2.25.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last issued its earnings results on Thursday, March 5th. The semiconductor company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. Marvell Technology had a return on equity of 14.22% and a net margin of 32.58%.The company had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.21 billion. During the same quarter in the prior year, the business earned $0.60 earnings per share. The company's revenue was up 22.1% compared to the same quarter last year. Marvell Technology has set its Q1 2027 guidance at 0.740-0.840 EPS. Sell-side analysts expect that Marvell Technology, Inc. will post 3.04 earnings per share for the current fiscal year.

Marvell Technology Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Friday, April 10th were given a $0.06 dividend. The ex-dividend date of this dividend was Friday, April 10th. This represents a $0.24 annualized dividend and a dividend yield of 0.1%. Marvell Technology's dividend payout ratio is presently 7.79%.

Institutional Investors Weigh In On Marvell Technology

Several institutional investors and hedge funds have recently modified their holdings of MRVL. Intech Investment Management LLC boosted its holdings in Marvell Technology by 3.9% in the first quarter. Intech Investment Management LLC now owns 28,784 shares of the semiconductor company's stock valued at $1,772,000 after purchasing an additional 1,085 shares during the last quarter. Baird Financial Group Inc. boosted its holdings in Marvell Technology by 22.7% in the second quarter. Baird Financial Group Inc. now owns 17,417 shares of the semiconductor company's stock valued at $1,348,000 after purchasing an additional 3,221 shares during the last quarter. Flow Traders U.S. LLC purchased a new position in Marvell Technology in the second quarter valued at about $354,000. Treasurer of the State of North Carolina boosted its holdings in Marvell Technology by 3.0% in the second quarter. Treasurer of the State of North Carolina now owns 403,818 shares of the semiconductor company's stock valued at $31,256,000 after purchasing an additional 11,572 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in Marvell Technology by 1.0% in the second quarter. Alliancebernstein L.P. now owns 411,569 shares of the semiconductor company's stock valued at $31,855,000 after purchasing an additional 4,060 shares during the last quarter. Hedge funds and other 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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