Marvell Technology (NASDAQ:MRVL) Trading Down 5.5% - Should You Sell?

Key Points

• Marvell Technology shares fell 5.5%, reaching a low of $85.36, with trading volume increasing by 52% compared to the average.
• Numerous analysts have updated their price targets for Marvell, with Needham & Company raising their target to $95.00 and JPMorgan lowering theirs to $120.00, while most analysts have issued a "buy" rating.
• Marvell announced a $5 billion share repurchase program and declared a quarterly dividend of $0.06, signalling confidence in its stock value despite recent market fluctuations.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares traded down 5.5% during trading on Friday . The stock traded as low as $85.36 and last traded at $85.61. 29,845,933 shares were traded during mid-day trading, an increase of 52% from the average session volume of 19,629,707 shares. The stock had previously closed at $90.62.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Needham & Company LLC raised their target price on shares of Marvell Technology from $80.00 to $95.00 and gave the company a "buy" rating in a report on Thursday, September 25th. JPMorgan Chase & Co. reduced their target price on shares of Marvell Technology from $130.00 to $120.00 and set an "overweight" rating on the stock in a report on Friday, August 29th. BNP Paribas raised shares of Marvell Technology to a "strong-buy" rating in a report on Friday, August 29th. UBS Group cut their target price on shares of Marvell Technology from $110.00 to $95.00 and set a "buy" rating on the stock in a research note on Friday, August 29th. Finally, Benchmark reiterated a "buy" rating and issued a $95.00 price target on shares of Marvell Technology in a report 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 issued a Hold rating to the stock. Based on data from MarketBeat.com, Marvell Technology currently has an average rating of "Moderate Buy" and a consensus target price of $92.33.

Marvell Technology Stock Down 5.6%

The company has a debt-to-equity ratio of 0.30, a current ratio of 1.88 and a quick ratio of 1.44. The company has a 50 day moving average price of $75.16 and a 200-day moving average price of $68.68. The stock has a market capitalization of $73.80 billion, a PE ratio of -658.54, a PEG ratio of 1.13 and a beta of 1.94.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last announced its quarterly earnings data on Thursday, August 28th. The semiconductor company reported $0.67 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 for the quarter, compared to the consensus estimate of $2.01 billion. During the same period in the prior year, the firm posted $0.30 EPS. Marvell Technology's revenue for the quarter was up 57.6% on a year-over-year basis. 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 earnings per share for the current fiscal year.

Marvell Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 30th. Stockholders 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 dividend on an annualized basis and a dividend yield of 0.3%. Marvell Technology's dividend payout ratio (DPR) is currently -184.62%.

Marvell Technology declared that its Board of Directors has initiated a share repurchase program on Wednesday, September 24th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to reacquire up to 7.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Marvell Technology

In related news, COO Chris Koopmans bought 6,800 shares of the company's stock in a transaction on Thursday, September 25th. The shares were bought at an average price of $78.03 per share, with a total value of $530,604.00. Following the transaction, the chief operating officer owned 104,825 shares in the company, valued at approximately $8,179,494.75. This trade represents a 6.94% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Sandeep Bharathi purchased 3,400 shares of the company's 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 purchase, the insider owned 73,392 shares in the company, valued at approximately $5,726,777.76. The trade was a 4.86% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have bought 27,200 shares of company stock worth $2,109,632. 0.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Marvell Technology

Several hedge funds have recently bought and sold shares of the stock. Game Plan Financial Advisors LLC purchased a new stake in shares of Marvell Technology during the 2nd quarter worth about $27,000. Kiker Wealth Management LLC boosted its position in Marvell Technology by 374.7% during the second quarter. Kiker Wealth Management LLC now owns 356 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 281 shares in the last quarter. Nova Wealth Management Inc. boosted its position in Marvell Technology by 3,922.2% during the third quarter. Nova Wealth Management Inc. now owns 362 shares of the semiconductor company's stock worth $30,000 after purchasing an additional 353 shares in the last quarter. N.E.W. Advisory Services LLC purchased a new position in Marvell Technology during the second quarter worth approximately $32,000. Finally, Hughes Financial Services LLC purchased a new position in Marvell Technology during the first quarter worth approximately $26,000. Hedge funds and other institutional investors own 83.51% of the company's stock.

Marvell Technology Company Profile

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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