Marvell Technology (NASDAQ:MRVL) Trading Down 16.8% Following Analyst Downgrade

Key Points

• Marvell Technology's stock experienced a significant drop of 16.8% after Wells Fargo downgraded its price target from $95.00 to $90.00, while still maintaining an overweight rating on the stock.
• Institutional investors have shown strong interest in Marvell, with Norges Bank purchasing a stake worth $716.7 million and DZ BANK AG raising its position dramatically by over 4,758%.
• Despite recent volatility, Marvell Technology's latest quarterly report indicated a revenue increase of 57.6% year-over-year, meeting analysts' expectations with an EPS of $0.67.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) was down 16.8% during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $95.00 to $90.00. Wells Fargo & Company currently has an overweight rating on the stock. Marvell Technology traded as low as $63.31 and last traded at $64.24. Approximately 39,491,108 shares traded hands during mid-day trading, an increase of 114% from the average daily volume of 18,437,035 shares. The stock had previously closed at $77.23.

MRVL has been the topic of several other reports. Benchmark reaffirmed a "buy" rating and set a $95.00 price objective on shares of Marvell Technology in a research report on Friday. Susquehanna dropped their price objective on Marvell Technology from $110.00 to $90.00 and set a "positive" rating on the stock in a research report on Tuesday, May 27th. UBS Group reaffirmed a "buy" rating on shares of Marvell Technology in a research report on Monday, June 2nd. The Goldman Sachs Group began coverage on Marvell Technology in a research report on Thursday, July 10th. They set a "neutral" rating and a $75.00 price objective on the stock. Finally, TD Cowen increased their target price on Marvell Technology from $60.00 to $70.00 and gave the company a "buy" rating in a report on Friday, May 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $92.10.

Insider Buying and Selling

In related news, CAO Panteha Dixon sold 1,283 shares of the company's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $68.50, for a total transaction of $87,885.50. Following the completion of the sale, the chief accounting officer directly owned 29,572 shares of the company's stock, valued at approximately $2,025,682. This represents a 4.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Willem A. Meintjes sold 1,500 shares of the company's stock in a transaction 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 sale, the chief financial officer directly owned 121,348 shares of the company's stock, valued at approximately $8,314,764.96. This trade represents a 1.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 5,783 shares of company stock valued at $407,716. Company insiders own 0.19% of the company's stock.

Institutional Trading of Marvell Technology

A number of institutional investors have recently added to or reduced their stakes in MRVL. Norges Bank purchased a new stake in Marvell Technology during the 2nd quarter worth $716,713,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its position in Marvell Technology by 4,758.5% during the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 7,036,216 shares of the semiconductor company's stock worth $544,603,000 after purchasing an additional 6,891,393 shares during the period. Nuveen Asset Management LLC boosted its position in Marvell Technology by 232.2% during the 4th quarter. Nuveen Asset Management LLC now owns 9,360,425 shares of the semiconductor company's stock worth $1,033,859,000 after purchasing an additional 6,543,132 shares during the period. Nuveen LLC acquired a new position in Marvell Technology in the 1st quarter worth $399,587,000. Finally, Goldman Sachs Group Inc. lifted its holdings in Marvell Technology by 32.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 20,661,308 shares of the semiconductor company's stock worth $1,272,117,000 after buying an additional 5,050,159 shares in the last quarter. 83.51% of the stock is owned by hedge funds and other institutional investors.

Marvell Technology Price Performance

The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.94 and a current ratio of 1.30. The stock has a market cap of $55.77 billion, a price-to-earnings ratio of -113.12, a price-to-earnings-growth ratio of 0.81 and a beta of 1.83. The business's fifty day simple moving average is $74.90 and its 200 day simple moving average is $71.08.

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 analysts' consensus estimates of $0.67. Marvell Technology had a negative net margin of 7.56% and a positive return on equity of 8.42%. The firm had revenue of $2.01 billion for the quarter, compared to analyst estimates of $2.01 billion. During the same quarter in the previous year, the business posted $0.30 EPS. The firm'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. Research analysts predict that Marvell Technology, Inc. will post 0.91 EPS for the current fiscal year.

Marvell Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Friday, July 11th were issued a $0.06 dividend. The ex-dividend date was Friday, July 11th. This represents a $0.24 dividend on an annualized basis and a yield of 0.4%. Marvell Technology's payout ratio is currently -42.11%.

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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