Marvell Technology (NASDAQ:MRVL) Trading 4.6% Higher on Insider Buying Activity

Key Points

• Marvell Technology's stock rose 4.6% after significant insider buying, with CEO Matthew J. Murphy purchasing 13,600 shares at $77.09 per share, equivalent to over $1 million in total.
• The company announced a quarterly dividend of $0.06 per share, reflecting a dividend yield of 0.3%, and has initiated a $5.00 billion share buyback plan.
• Multiple analysts are projecting varying price targets for Marvell Technology, with a consensus rating of “Moderate Buy” and an average price target of $91.17, indicating potential upside from current levels.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report)'s share price traded up 4.6% on Thursday after an insider bought additional shares in the company. The company traded as high as $84.46 and last traded at $83.81. 43,176,980 shares were traded during trading, an increase of 121% from the average session volume of 19,570,469 shares. The stock had previously closed at $80.09.

Specifically, CEO Matthew J. Murphy bought 13,600 shares of the company's stock in a transaction that occurred on Thursday, September 25th. The shares were acquired at an average price of $77.09 per share, for a total transaction of $1,048,424.00. Following the completion of the acquisition, the chief executive officer directly owned 268,637 shares in the company, valued at approximately $20,709,226.33. This represents a 5.33% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, COO Chris Koopmans bought 6,800 shares of the stock in a transaction that occurred on Thursday, September 25th. The stock was acquired at an average price of $78.03 per share, for a total transaction of $530,604.00. Following the acquisition, the chief operating officer directly owned 104,825 shares in the company, valued at $8,179,494.75. The trade was a 6.94% increase in their ownership of the stock. The disclosure for this purchase can be found here. In other Marvell Technology news, insider Sandeep Bharathi bought 3,400 shares of the stock in a transaction that occurred on Thursday, September 25th. The shares were bought at an average price of $78.03 per share, for a total transaction 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 acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on MRVL shares. Cantor Fitzgerald restated a "neutral" rating and issued a $75.00 target price on shares of Marvell Technology in a report on Friday, August 29th. B. Riley restated a "buy" rating and issued a $115.00 target price (up previously from $110.00) on shares of Marvell Technology in a report on Wednesday, June 18th. Evercore ISI lowered their target price on shares of Marvell Technology from $133.00 to $122.00 and set an "outperform" rating on the stock in a report on Friday, August 29th. Zacks Research lowered shares of Marvell Technology from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 26th. Finally, Oppenheimer restated an "outperform" rating and issued a $95.00 target price on shares of Marvell Technology in a report on Friday, August 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Marvell Technology presently has a consensus rating of "Moderate Buy" and an average price target of $91.17.

Marvell Technology Stock Up 4.6%

The stock's 50-day simple moving average is $72.74 and its 200-day simple moving average is $67.39. The firm has a market capitalization of $72.25 billion, a P/E ratio of -644.69, a P/E/G ratio of 0.90 and a beta of 1.85. The company has a current ratio of 1.88, a quick ratio of 1.44 and a debt-to-equity ratio of 0.30.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last released its earnings results on Thursday, August 28th. The semiconductor company reported $0.67 earnings per share for the quarter, meeting analysts' consensus estimates of $0.67. Marvell Technology had a negative net margin of 1.43% and a positive return on equity of 11.01%. The firm had revenue of $2.01 billion during the quarter, compared to the consensus estimate of $2.01 billion. During the same period in the prior year, the firm earned $0.30 EPS. The company's 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. As a group, research analysts predict that Marvell Technology, Inc. will post 0.91 earnings per share for the current fiscal year.

Marvell Technology Announces Dividend

The business 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 dividend of $0.06 per share. 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 dividend payout ratio is currently -184.62%.

Marvell Technology announced that its Board of Directors has approved a share buyback plan on Wednesday, September 24th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the semiconductor company to purchase up to 7.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Institutional Trading of Marvell Technology

A number of institutional investors have recently modified their holdings of MRVL. Hughes Financial Services LLC purchased a new stake in shares of Marvell Technology during the 1st quarter valued at approximately $26,000. Rossby Financial LCC purchased a new stake in Marvell Technology in the 1st quarter worth approximately $27,000. Financial Connections Group Inc. lifted its stake in Marvell Technology by 776.0% in the 1st quarter. Financial Connections Group Inc. now owns 438 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 388 shares in the last quarter. Game Plan Financial Advisors LLC purchased a new stake in Marvell Technology in the 2nd quarter worth approximately $27,000. Finally, Vision Financial Markets LLC purchased a new stake in Marvell Technology in the 1st quarter worth approximately $28,000. 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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