Marvell Technology (NASDAQ:MRVL) Trading Up 4.4% - Should You Buy?

Key Points

• Marvell Technology's stock price increased by 4.4% to $89.39, with over 20 million shares traded, surpassing its average daily volume.
• The company announced a $5 billion stock repurchase program aimed at returning value to shareholders and indicating management's belief that the stock is undervalued.
• Marvell's recent quarterly earnings report showed a revenue of $2.01 billion and earnings per share of $0.67, matching analyst expectations and representing a year-over-year revenue growth of 57.6%.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report)'s share price was up 4.4% during trading on Monday . The company traded as high as $89.87 and last traded at $89.39. Approximately 20,247,107 shares traded hands during mid-day trading, an increase of 3% from the average daily volume of 19,636,496 shares. The stock had previously closed at $85.61.

Analyst Ratings Changes

A number of equities analysts have recently commented on MRVL shares. Evercore ISI dropped their price objective on Marvell Technology from $133.00 to $122.00 and set an "outperform" rating on the stock in a research note on Friday, August 29th. TD Cowen reiterated a "hold" rating and issued a $85.00 price objective (down from $90.00) on shares of Marvell Technology in a research note on Wednesday, October 1st. Cantor Fitzgerald reiterated a "neutral" rating and issued a $75.00 price objective on shares of Marvell Technology in a research note on Friday, August 29th. Benchmark reiterated a "buy" rating and issued a $95.00 price objective on shares of Marvell Technology in a research note on Friday, August 29th. Finally, Bank of America restated a "neutral" rating and set a $78.00 price target (down from $90.00) on shares of Marvell Technology in a research note on Friday, August 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, Marvell Technology presently has a consensus rating of "Moderate Buy" and a consensus price target of $92.67.

Marvell Technology Stock Up 4.4%

The company has a quick ratio of 1.44, a current ratio of 1.88 and a debt-to-equity ratio of 0.30. The business has a fifty day simple moving average of $75.38 and a two-hundred day simple moving average of $68.82. The company has a market capitalization of $77.06 billion, a price-to-earnings ratio of -687.62, a P/E/G ratio of 1.05 and a beta of 1.94.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last released its quarterly earnings data on Thursday, August 28th. The semiconductor company reported $0.67 earnings per share for the quarter, meeting analysts' consensus estimates of $0.67. The company had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $2.01 billion. Marvell Technology had a positive return on equity of 11.01% and a negative net margin of 1.43%.The company's quarterly revenue was up 57.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.30 earnings per share. Marvell Technology has set its Q3 2026 guidance at 0.690-0.790 EPS. Equities analysts expect that Marvell Technology, Inc. will post 0.91 EPS for the current year.

Marvell Technology Dividend Announcement

The firm also recently announced 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. This represents a $0.24 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, October 10th. Marvell Technology's payout ratio is presently -184.62%.

Marvell Technology declared that its Board of Directors has approved a stock repurchase program on Wednesday, September 24th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the semiconductor company to repurchase up to 7.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, CEO Matthew J. Murphy acquired 13,600 shares of Marvell Technology stock in a transaction on Thursday, September 25th. The shares were purchased at an average price of $77.09 per share, with a total value of $1,048,424.00. Following the acquisition, the chief executive officer owned 268,637 shares in the company, valued at $20,709,226.33. This represents a 5.33% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Chris Koopmans acquired 6,800 shares of Marvell Technology stock in a transaction on Thursday, September 25th. The shares were purchased at an average cost of $78.03 per share, for a total transaction of $530,604.00. Following the acquisition, the chief operating officer owned 104,825 shares in the company, valued at approximately $8,179,494.75. This represents a 6.94% increase in their position. The disclosure for this purchase can be found here. Insiders acquired 27,200 shares of company stock worth $2,109,632 over the last ninety days. 0.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Hughes Financial Services LLC bought a new stake in shares of Marvell Technology during the 1st quarter valued at $26,000. Rossby Financial LCC bought a new stake in shares of Marvell Technology during the 1st quarter valued at $27,000. Financial Connections Group Inc. raised its position in shares of Marvell Technology by 776.0% during the 1st quarter. Financial Connections Group Inc. now owns 438 shares of the semiconductor company's stock valued at $27,000 after acquiring an additional 388 shares during the last quarter. Game Plan Financial Advisors LLC bought a new stake in shares of Marvell Technology during the 2nd quarter valued at $27,000. Finally, Vision Financial Markets LLC bought a new stake in shares of Marvell Technology during the 1st quarter valued at $28,000. Institutional investors and hedge funds 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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