Marvell Technology (NASDAQ:MRVL) Trading Down 2.2% - Should You Sell?

Key Points

• Marvell Technology's stock price decreased by 2.2%, trading at approximately $86 after hitting a low of $86.03 during mid-day trading, with a notable decline in trading volume.
• Despite recent fluctuations, analyst consensus for Marvell Technology is a "Moderate Buy" with a price target averaging around $91.67, supported by a variety of research firm ratings.
• The company recently declared a $0.06 quarterly dividend and announced a significant share repurchase plan, indicating confidence in its stock valuation.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report)'s share price dropped 2.2% during mid-day trading on Tuesday . The stock traded as low as $86.03 and last traded at $86.97. Approximately 17,564,425 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 19,595,537 shares. The stock had previously closed at $88.92.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on MRVL shares. Cantor Fitzgerald restated a "neutral" rating and issued a $75.00 price objective on shares of Marvell Technology in a report on Friday, August 29th. Wells Fargo & Company reduced their price objective on Marvell Technology from $95.00 to $90.00 and set an "overweight" rating for the company in a research report on Friday, August 29th. Benchmark reissued a "buy" rating and issued a $95.00 target price on shares of Marvell Technology in a report on Friday, August 29th. Deutsche Bank Aktiengesellschaft raised their price target on Marvell Technology from $80.00 to $90.00 and gave the company a "buy" rating in a report on Thursday, September 25th. Finally, Evercore ISI dropped their price target on shares of Marvell Technology from $133.00 to $122.00 and set an "outperform" rating on the stock in a research note on Friday, August 29th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $91.67.

Marvell Technology Stock Down 2.2%

The company's 50-day moving average price is $74.53 and its 200 day moving average price is $68.26. 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 market cap of $74.98 billion, a PE ratio of -669.00, a price-to-earnings-growth ratio of 1.06 and a beta of 1.94.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last announced its earnings results on Thursday, August 28th. The semiconductor company reported $0.67 earnings per share (EPS) for the quarter, meeting 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 company had revenue of $2.01 billion during the quarter, compared to analyst estimates of $2.01 billion. During the same period in the previous year, the business posted $0.30 earnings per share. The firm'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. As a group, analysts forecast that Marvell Technology, Inc. will post 0.91 EPS for the current fiscal year.

Marvell Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 30th. Investors of record on Friday, October 10th will be given a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 0.3%. The ex-dividend date is Friday, October 10th. Marvell Technology's payout ratio is currently -184.62%.

Marvell Technology announced that its Board of Directors has initiated a share repurchase plan on Wednesday, September 24th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 7.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Willem A. Meintjes acquired 3,400 shares of the stock in a transaction on 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 transaction, the chief financial officer directly owned 132,159 shares in the company, valued at approximately $10,312,366.77. This represents a 2.64% 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, insider Sandeep Bharathi acquired 3,400 shares of Marvell Technology stock in a transaction on Thursday, September 25th. The shares were purchased at an average price of $78.03 per share, for a total transaction of $265,302.00. Following the completion of the acquisition, the insider directly owned 73,392 shares in the company, valued at $5,726,777.76. This trade represents a 4.86% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased a total of 27,200 shares of company stock worth $2,109,632 over the last ninety days. Corporate insiders own 0.33% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Game Plan Financial Advisors LLC purchased a new position in shares of Marvell Technology during the 2nd quarter valued at approximately $27,000. Kiker Wealth Management LLC increased its holdings in Marvell Technology by 374.7% in the second quarter. Kiker Wealth Management LLC now owns 356 shares of the semiconductor company's stock valued at $28,000 after buying an additional 281 shares in the last quarter. Nova Wealth Management Inc. raised its position in shares of Marvell Technology by 3,922.2% in the third quarter. Nova Wealth Management Inc. now owns 362 shares of the semiconductor company's stock worth $30,000 after acquiring an additional 353 shares during the period. N.E.W. Advisory Services LLC purchased a new stake in shares of Marvell Technology during the 2nd quarter worth about $32,000. Finally, Hughes Financial Services LLC acquired a new stake in shares of Marvell Technology during the 1st quarter valued at about $26,000. 83.51% of the stock is owned by institutional investors and hedge funds.

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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