Marvell Technology (NASDAQ:MRVL) Stock Price Down 6.5% - Time to Sell?

Key Points

• Marvell Technology's stock price dropped 6.5% to $75.17, with trading volume decreasing by 42% compared to its average.
• Equity analysts maintain a generally positive outlook on Marvell, with 22 buy ratings and an average price target of $94.70, despite some target revisions reducing expectations.
• The company reported a 63.3% year-over-year revenue increase, with quarterly earnings of $0.62 per share, surpassing analysts' estimates.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report)'s share price was down 6.5% on Friday . The stock traded as low as $73.52 and last traded at $75.17. Approximately 10,821,423 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 18,767,445 shares. The stock had previously closed at $80.37.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the stock. Benchmark reiterated a "buy" rating and set a $95.00 price objective on shares of Marvell Technology in a research report on Wednesday, June 18th. China Renaissance assumed coverage on shares of Marvell Technology in a report on Thursday, June 5th. They issued a "buy" rating and a $110.00 price objective for the company. Deutsche Bank Aktiengesellschaft decreased their target price on Marvell Technology from $100.00 to $85.00 and set a "buy" rating for the company in a research report on Friday, May 30th. TD Cowen increased their target price on Marvell Technology from $60.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, May 30th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $90.00 price objective (down from $110.00) on shares of Marvell Technology in a research report on Friday, May 30th. One investment 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 MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $94.70.

Marvell Technology Trading Down 7.9%

The company has a market cap of $63.93 billion, a P/E ratio of -129.82, a P/E/G ratio of 0.89 and a beta of 1.81. The company has a quick ratio of 0.94, a current ratio of 1.30 and a debt-to-equity ratio of 0.22. The business has a 50-day moving average price of $71.31 and a two-hundred day moving average price of $76.63.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last announced its quarterly earnings results on Thursday, May 29th. The semiconductor company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.01. The company had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.88 billion. Marvell Technology had a positive return on equity of 8.42% and a negative net margin of 7.56%. Marvell Technology's revenue was up 63.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.24 EPS. On average, analysts predict that Marvell Technology, Inc. will post 0.91 EPS for the current year.

Marvell Technology Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Friday, July 11th were issued a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Friday, July 11th. Marvell Technology's dividend payout ratio is -42.11%.

Insiders Place Their Bets

In related news, EVP Mark Casper sold 3,000 shares of the stock in a transaction dated 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 in the company, valued at approximately $1,241,743.05. This trade represents a 14.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Willem A. Meintjes sold 1,500 shares of the firm's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $68.52, for a total transaction of $102,780.00. Following 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 16,434 shares of company stock valued at $1,097,826 in the last quarter. 0.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Hughes Financial Services LLC bought a new position in shares of Marvell Technology in the first quarter valued at $26,000. Rossby Financial LCC bought a new stake in Marvell Technology in the 1st quarter valued at $27,000. Financial Connections Group Inc. boosted its position in shares of Marvell Technology by 776.0% in the first quarter. Financial Connections Group Inc. now owns 438 shares of the semiconductor company's stock valued at $27,000 after acquiring an additional 388 shares during the period. Game Plan Financial Advisors LLC bought a new stake in Marvell Technology in the 2nd quarter valued at about $27,000. Finally, Vision Financial Markets LLC bought a new stake in shares of Marvell Technology in the first quarter valued at approximately $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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