Marvell Technology (NASDAQ:MRVL) Stock Price Up 6.4% - Should You Buy?

Key Points

• Marvell Technology's stock price increased by 6.4% to $92.50, with a trading volume of over 20 million shares, indicating strong market activity.
• The company recently announced a $5 billion share buyback plan, reflecting confidence from its leadership in the stock's undervalued status.
• Marvell's Q2 earnings report showed revenue of $2.01 billion and an EPS of $0.67, in line with analyst expectations, and a significant 57.6% year-over-year revenue growth.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report)'s share price shot up 6.4% on Wednesday . The company traded as high as $92.67 and last traded at $92.50. 20,260,492 shares changed hands during mid-day trading, an increase of 4% from the average session volume of 19,575,293 shares. The stock had previously closed at $86.97.

Analysts Set New Price Targets

MRVL has been the subject of several analyst reports. Oppenheimer restated an "outperform" rating and issued a $95.00 price objective on shares of Marvell Technology in a report on Friday, August 29th. The Goldman Sachs Group assumed coverage on shares of Marvell Technology in a research note on Thursday, July 10th. They issued a "neutral" rating and a $75.00 target price for the company. Bank of America reissued a "neutral" rating and issued a $78.00 target price (down from $90.00) on shares of Marvell Technology in a research note on Friday, August 29th. Wells Fargo & Company decreased their target price on shares of Marvell Technology from $95.00 to $90.00 and set an "overweight" rating for the company in a research note on Friday, August 29th. Finally, Cantor Fitzgerald reissued a "neutral" rating and issued a $75.00 price objective on shares of Marvell Technology in a research report on Friday, August 29th. Two investment 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's stock. Based on data from MarketBeat.com, Marvell Technology presently has a consensus rating of "Moderate Buy" and an average price target of $91.67.

Marvell Technology Stock Up 6.4%

The firm has a market cap of $79.74 billion, a P/E ratio of -711.54, a P/E/G ratio of 1.09 and a beta of 1.94. The firm's fifty day moving average is $74.74 and its 200 day moving average is $68.39. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.44 and a current ratio of 1.88.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last issued its quarterly earnings data on Thursday, August 28th. The semiconductor company reported $0.67 earnings per share (EPS) 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 was up 57.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.30 earnings per share. Marvell Technology has set its Q3 2026 guidance at 0.690-0.790 EPS. As a group, equities research analysts anticipate that Marvell Technology, Inc. will post 0.91 earnings per share 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. Stockholders of record on Friday, October 10th will be given a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, October 10th. Marvell Technology's payout ratio is presently -184.62%.

Marvell Technology announced that its board has initiated a share 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 buy up to 7.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Marvell Technology

In other news, CEO Matthew J. Murphy purchased 13,600 shares of the business's stock in a transaction dated Thursday, September 25th. The stock was bought at an average price of $77.09 per share, with a total value of $1,048,424.00. Following the acquisition, the chief executive officer owned 268,637 shares in the company, valued at approximately $20,709,226.33. The trade was a 5.33% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Sandeep Bharathi bought 3,400 shares of the company's stock in a transaction dated Thursday, September 25th. The stock was bought at an average cost of $78.03 per share, with a total value of $265,302.00. Following the acquisition, the insider directly owned 73,392 shares of the company's stock, valued at approximately $5,726,777.76. The trade was a 4.86% increase in their position. The disclosure for this purchase can be found here. Insiders have purchased a total of 27,200 shares of company stock valued at $2,109,632 over the last three months. 0.33% of the stock is owned by insiders.

Institutional Trading of Marvell Technology

Several hedge funds have recently modified their holdings of MRVL. Vanguard Group Inc. increased its holdings in Marvell Technology by 1.1% during the 2nd quarter. Vanguard Group Inc. now owns 64,443,232 shares of the semiconductor company's stock worth $4,987,906,000 after purchasing an additional 673,110 shares in the last quarter. Brown Advisory Inc. grew its position in shares of Marvell Technology by 8.0% during the 2nd quarter. Brown Advisory Inc. now owns 20,840,336 shares of the semiconductor company's stock valued at $1,613,044,000 after acquiring an additional 1,539,809 shares during the period. Goldman Sachs Group Inc. grew its position in shares of Marvell Technology by 32.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 20,661,308 shares of the semiconductor company's stock valued at $1,272,117,000 after acquiring an additional 5,050,159 shares during the period. State Street Corp grew its holdings in Marvell Technology by 2.7% during the second quarter. State Street Corp now owns 20,573,260 shares of the semiconductor company's stock valued at $1,592,370,000 after purchasing an additional 533,946 shares during the period. Finally, Ameriprise Financial Inc. grew its holdings in Marvell Technology by 16.4% during the second quarter. Ameriprise Financial Inc. now owns 10,406,875 shares of the semiconductor company's stock valued at $805,473,000 after purchasing an additional 1,464,571 shares during the period. Institutional investors 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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