Marvell Technology (NASDAQ:MRVL) Stock Price Down 10.3% After Analyst Downgrade

Key Points

• Marvell shares fell 10.3% to about $216.62 after B. Riley cut its price target from $345 to $315, despite maintaining a buy rating. Trading volume surged 66% above the average session volume.
• The company reported strong fiscal second-quarter results, with revenue rising 37% year over year to approximately $2.74 billion and adjusted EPS of $0.94. Data-center revenue grew 46% on AI demand, and management raised its long-term outlook and third-quarter guidance.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $265.76, although insiders have sold roughly $9.75 million of stock over the past 90 days.

Marvell Technology, Inc. (NASDAQ:MRVL - Get Free Report) shares were down 10.3% during trading on Friday after B. Riley Financial lowered their price target on the stock from $345.00 to $315.00. B. Riley Financial currently has a buy rating on the stock. Marvell Technology traded as low as $215.55 and last traded at $216.62. Approximately 48,177,398 shares were traded during trading, an increase of 66% from the average session volume of 29,078,627 shares. The stock had previously closed at $241.45.

Several other research firms also recently weighed in on MRVL. Stifel Nicolaus raised their price target on Marvell Technology from $321.00 to $350.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Barclays restated an "overweight" rating on shares of Marvell Technology in a research report on Thursday, August 20th. The Goldman Sachs Group set a $220.00 price objective on Marvell Technology in a research note on Friday. UBS Group set a $275.00 target price on shares of Marvell Technology in a research note on Monday. Finally, Morgan Stanley upped their target price on shares of Marvell Technology from $224.00 to $246.00 and gave the company an "equal weight" rating in a report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $265.76.

Insiders Place Their Bets

In other news, CEO Matthew J. Murphy sold 7,500 shares of Marvell Technology stock in a transaction on Monday, August 17th. The stock was sold at an average price of $236.08, for a total value of $1,770,600.00. Following the completion of the sale, the chief executive officer owned 783,186 shares of the company's stock, valued at $184,894,550.88. The trade was a 0.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Durn sold 2,250 shares of the company's stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $281.01, for a total value of $632,272.50. Following the completion of the transaction, the chief financial officer owned 6,902 shares of the company's stock, valued at $1,939,531.02. The trade was a 24.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 41,981 shares of company stock valued at $9,753,132. Insiders own 0.12% of the company's stock.

Marvell Technology News Roundup

Here are the key news stories impacting Marvell Technology this week:

• Positive Sentiment: Marvell reported record fiscal Q2 revenue of approximately $2.74 billion, up 37% year over year, and adjusted EPS of $0.94 versus consensus of $0.93. Data-center revenue rose 46% to $2.17 billion, supported by strong AI demand. MRVL Q2 Earnings Beat on Data Center Strength, Outlook Raised
• Positive Sentiment: Management raised its outlook, including fiscal 2027 revenue of roughly $12 billion and fiscal 2028 revenue of about $18 billion. Third-quarter EPS guidance of $1.05-$1.15 also exceeded the $1.03 consensus estimate. Marvell Q2 Earnings Call Highlights Faster AI Data Center Growth
• Positive Sentiment: Several analysts remain bullish. Needham raised its price target to $300, while Oppenheimer increased its target to $325 and maintained an outperform rating. Rosenblatt and Needham also cited the long-term potential of Marvell’s Google AI-chip partnership. Marvell’s Google AI Chip Deal Could Drive $120 Billion in Long-Term Revenue

Institutional Trading of Marvell Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System grew its holdings in Marvell Technology by 29,523.4% in the second quarter. California State Teachers Retirement System now owns 385,108,617 shares of the semiconductor company's stock valued at $114,720,006,000 after purchasing an additional 383,808,601 shares during the period. BlackRock Inc. increased its position in Marvell Technology by 34.1% during the second quarter. BlackRock Inc. now owns 85,641,174 shares of the semiconductor company's stock worth $25,511,649,000 after purchasing an additional 21,798,190 shares during the last quarter. Norges Bank purchased a new position in Marvell Technology during the fourth quarter worth approximately $895,455,000. Bank of America Corp DE purchased a new position in Marvell Technology during the second quarter worth approximately $2,607,795,000. Finally, Legal & General Group Plc acquired a new position in shares of Marvell Technology in the 2nd quarter valued at $1,742,526,000. Hedge funds and other institutional investors own 83.51% of the company's stock.

Marvell Technology Stock Performance

The stock's fifty day simple moving average is $229.10 and its two-hundred day simple moving average is $176.28. The company has a market cap of $189.50 billion, a price-to-earnings ratio of 74.18, a price-to-earnings-growth ratio of 1.53 and a beta of 2.24. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.66 and a current ratio of 3.28.

Marvell Technology (NASDAQ:MRVL - Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The semiconductor company reported $0.94 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.01. The business had revenue of $2.74 billion during the quarter, compared to the consensus estimate of $2.72 billion. Marvell Technology had a return on equity of 13.83% and a net margin of 28.99%.The business's revenue for the quarter was up 36.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.67 EPS. Marvell Technology has set its Q3 2027 guidance at 1.050-1.150 EPS. Equities research analysts anticipate that Marvell Technology, Inc. will post 3.07 EPS for the current year.

Marvell Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 30th. Shareholders of record on Friday, July 10th were paid a dividend of $0.06 per share. The ex-dividend date was Friday, July 10th. This represents a $0.24 annualized dividend and a yield of 0.1%. Marvell Technology's dividend payout ratio is currently 8.22%.

About Marvell Technology

Marvell Technology Group is a global semiconductor company that designs and develops integrated circuits and related software for data infrastructure, networking, storage and connectivity markets. The company's product portfolio includes system-on-chip (SoC) solutions, Ethernet physical-layer transceivers (PHYs), switch and switch silicon, optical interconnect components, storage controllers, and security processors. Marvell's technology is used to enable high-performance data centers, carrier networks, enterprise and cloud storage, as well as connectivity in automotive and industrial applications.

Founded in 1995 and headquartered in Santa Clara, California, Marvell has grown through both organic development and strategic acquisitions to broaden its capabilities across networking and data interconnect.

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