Marvell Technology (NASDAQ:MRVL) Trading 2.1% Higher - Still a Buy?

Key Points

• Marvell Technology's stock increased by 2.1%, reaching a last trading price of $82.77, while average session volume decreased significantly by 48% to 10.1 million shares.
• The company recently disclosed a quarterly dividend of $0.06 per share, representing an annualized yield of 0.3%, and has a negative dividend payout ratio of -184.62%.
• Analysts have mixed views, with 21 rating it as a Buy and 13 as Hold, while the average target price stands at $93.06 according to MarketBeat.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares traded up 2.1% during trading on Thursday . The company traded as high as $83.45 and last traded at $82.77. 10,138,773 shares were traded during mid-day trading, a decline of 48% from the average session volume of 19,422,107 shares. The stock had previously closed at $81.05.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Cowen cut Marvell Technology from a "buy" rating to a "hold" rating in a research note on Tuesday, September 30th. Roth Capital reissued a "buy" rating on shares of Marvell Technology in a research note on Wednesday, October 15th. Zacks Research raised Marvell Technology from a "strong sell" rating to a "hold" rating in a research note on Wednesday, September 24th. Needham & Company LLC increased their target price on Marvell Technology from $80.00 to $95.00 and gave the company a "buy" rating in a research note on Thursday, September 25th. Finally, JPMorgan Chase & Co. reduced their target price on Marvell Technology from $130.00 to $120.00 and set an "overweight" rating on the stock in a research note on Friday, August 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat, Marvell Technology presently has a consensus rating of "Moderate Buy" and an average target price of $93.06.

Marvell Technology Trading Up 2.1%

The company has a quick ratio of 1.44, a current ratio of 1.88 and a debt-to-equity ratio of 0.30. The stock's fifty day moving average price is $76.90 and its two-hundred day moving average price is $70.19. The company has a market capitalization of $71.36 billion, a PE ratio of -636.69, a price-to-earnings-growth ratio of 1.03 and a beta of 1.94.

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

Marvell Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 30th. Shareholders of record on Friday, October 10th will be issued a $0.06 dividend. The ex-dividend date is Friday, October 10th. This represents a $0.24 annualized dividend and a yield of 0.3%. Marvell Technology's dividend payout ratio (DPR) is -184.62%.

Marvell Technology announced that its Board of Directors has approved a stock buyback program on Wednesday, September 24th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the semiconductor company to repurchase up to 7.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Marvell Technology

In related news, CFO Willem A. Meintjes acquired 3,400 shares of the stock in a transaction on Thursday, September 25th. The stock was acquired at an average cost of $78.03 per share, for a total transaction of $265,302.00. Following the completion of the acquisition, the chief financial officer directly owned 132,159 shares of the company's stock, valued at approximately $10,312,366.77. This represents a 2.64% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Chris Koopmans bought 6,800 shares of the stock in a transaction dated Thursday, September 25th. The shares were acquired at an average price of $78.03 per share, with a total value of $530,604.00. Following the completion of the acquisition, the chief operating officer directly owned 104,825 shares of the company's stock, valued at approximately $8,179,494.75. The trade was a 6.94% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 27,200 shares of company stock valued at $2,109,632. 0.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Marvell Technology

Large investors have recently made changes to their positions in the business. Taylor Frigon Capital Management LLC lifted its holdings in shares of Marvell Technology by 16.5% during the second quarter. Taylor Frigon Capital Management LLC now owns 33,605 shares of the semiconductor company's stock valued at $2,601,000 after purchasing an additional 4,748 shares during the last quarter. BOCHK Asset Management Ltd purchased a new position in shares of Marvell Technology during the second quarter valued at approximately $1,486,000. Westbourne Investments Inc. lifted its holdings in shares of Marvell Technology by 442.4% during the second quarter. Westbourne Investments Inc. now owns 21,695 shares of the semiconductor company's stock valued at $1,679,000 after purchasing an additional 17,695 shares during the last quarter. Triton Financial Group Inc purchased a new position in shares of Marvell Technology during the second quarter valued at approximately $1,543,000. Finally, Family Legacy Financial Solutions LLC bought a new stake in shares of Marvell Technology during the second quarter valued at approximately $1,618,000. 83.51% of the stock is currently owned by hedge funds and other institutional investors.

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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