Marvell Technology (NASDAQ:MRVL) Trading 7.3% Higher - Here's Why

Key Points

• Marvell Technology's shares surged by 7.3% recently, reaching a high of $81.72, with trading volume significantly increasing to 50.1 million shares.
• Analysts have mixed ratings on the stock, with a consensus rating of "Moderate Buy" and a target price averaging $90.50 despite some recent downward adjustments from various firms.
• The company reported earnings of $0.67 per share for the last quarter, matching expectations, while also announcing a quarterly dividend of $0.06 per share to be paid on October 30th.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares traded up 7.3% during mid-day trading on Wednesday . The company traded as high as $81.72 and last traded at $80.09. 50,172,670 shares were traded during mid-day trading, an increase of 158% from the average session volume of 19,411,551 shares. The stock had previously closed at $74.62.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the company. Bank of America reiterated a "neutral" rating and issued a $78.00 target price (down from $90.00) on shares of Marvell Technology in a report on Friday, August 29th. Evercore ISI cut their target price on Marvell Technology from $133.00 to $122.00 and set an "outperform" rating on the stock in a report on Friday, August 29th. Benchmark reiterated a "buy" rating and issued a $95.00 target price on shares of Marvell Technology in a report on Friday, August 29th. Piper Sandler reiterated an "overweight" rating and issued a $85.00 target price (down from $95.00) on shares of Marvell Technology in a report on Friday, May 30th. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $90.00 target price (down from $110.00) on shares of Marvell Technology in a report on Friday, May 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $90.50.

Marvell Technology Stock Up 7.3%

The company has a market capitalization of $69.05 billion, a P/E ratio of -616.08, a PEG ratio of 0.91 and a beta of 1.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.44 and a current ratio of 1.88. The stock has a 50 day moving average price of $72.55 and a 200 day moving average price of $67.30.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last released its earnings results on Thursday, August 28th. The semiconductor company reported $0.67 EPS for the quarter, hitting analysts' consensus estimates of $0.67. Marvell Technology had a positive return on equity of 11.01% and a negative net margin of 1.43%.The company had revenue of $2.01 billion for the quarter, compared to analysts' expectations of $2.01 billion. During the same period in the previous year, the business posted $0.30 EPS. The business's revenue for the quarter 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. Equities research analysts forecast 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. Shareholders of record on Friday, October 10th will be issued a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Friday, October 10th. Marvell Technology's payout ratio is presently -184.62%.

Insiders Place Their Bets

In other Marvell Technology news, EVP Mark Casper sold 3,000 shares of Marvell Technology 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 owned 17,163 shares of the company's stock, valued at $1,241,743.05. The trade was a 14.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of MRVL. Norges Bank purchased a new stake in Marvell Technology in the second quarter worth approximately $716,713,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its position in Marvell Technology by 4,758.5% in the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 7,036,216 shares of the semiconductor company's stock valued at $544,603,000 after purchasing an additional 6,891,393 shares during the last quarter. Nuveen LLC bought a new stake in Marvell Technology in the first quarter valued at approximately $399,587,000. Goldman Sachs Group Inc. lifted its position in Marvell Technology by 32.3% in the first quarter. Goldman Sachs Group Inc. now owns 20,661,308 shares of the semiconductor company's stock valued at $1,272,117,000 after purchasing an additional 5,050,159 shares during the last quarter. Finally, Amundi lifted its position in Marvell Technology by 113.4% in the second quarter. Amundi now owns 8,648,350 shares of the semiconductor company's stock valued at $642,140,000 after purchasing an additional 4,596,309 shares during the last quarter. Hedge funds and other 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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