Marvell Technology (NASDAQ:MRVL) Shares Gap Up Following Better-Than-Expected Earnings

Marvell Technology, Inc. (NASDAQ:MRVL)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $92.89, but opened at $100.04. Marvell Technology shares last traded at $98.9450, with a volume of 18,058,706 shares.

The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.02. Marvell Technology had a positive return on equity of 11.01% and a negative net margin of 1.43%.The firm had revenue of $2.07 billion for the quarter, compared to analysts’ expectations of $2.06 billion. During the same period in the previous year, the firm posted $0.43 earnings per share. The business’s revenue was up 36.8% compared to the same quarter last year. Marvell Technology has set its Q4 2026 guidance at 0.740-0.840 EPS.

Marvell Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 30th. Stockholders of record on Friday, October 10th were given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Friday, October 10th. Marvell Technology’s dividend payout ratio is currently 8.42%.

Marvell Technology declared that its board has approved a share repurchase plan on Wednesday, September 24th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the semiconductor company to purchase up to 7.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Hsbc Global Res raised shares of Marvell Technology to a “hold” rating in a research note on Monday, November 24th. Jefferies Financial Group restated a “buy” rating on shares of Marvell Technology in a report on Wednesday. Wells Fargo & Company increased their price target on shares of Marvell Technology from $90.00 to $135.00 and gave the company an “overweight” rating in a report on Wednesday. HSBC started coverage on Marvell Technology in a research note on Monday, November 24th. They set a “hold” rating and a $85.00 price objective on the stock. Finally, B. Riley reaffirmed a “buy” rating on shares of Marvell Technology in a research note on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and fourteen have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $108.47.

Insiders Place Their Bets

In related news, COO Chris Koopmans purchased 6,800 shares of the business’s stock in a transaction dated 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 completion of the acquisition, 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 position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Matthew J. Murphy purchased 13,600 shares of Marvell Technology stock in a transaction that occurred on Thursday, September 25th. The stock was bought at an average cost of $77.09 per share, for a total transaction of $1,048,424.00. Following the purchase, the chief executive officer directly owned 268,637 shares in the company, valued at $20,709,226.33. This trade represents a 5.33% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought a total of 27,200 shares of company stock valued at $2,109,632 over the last quarter. 0.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Marvell Technology

A number of institutional investors have recently modified their holdings of the stock. Financial Connections Group Inc. boosted its holdings in shares of Marvell Technology by 776.0% in the first quarter. Financial Connections Group Inc. now owns 438 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 388 shares during the period. Game Plan Financial Advisors LLC purchased a new position in Marvell Technology during the 2nd quarter worth $27,000. Atlantic Edge Private Wealth Management LLC raised its position in Marvell Technology by 160.0% during the 3rd quarter. Atlantic Edge Private Wealth Management LLC now owns 325 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 200 shares in the last quarter. Vision Financial Markets LLC purchased a new stake in shares of Marvell Technology in the 1st quarter worth $28,000. Finally, Kiker Wealth Management LLC grew its position in shares of Marvell Technology by 374.7% during the 2nd quarter. Kiker Wealth Management LLC now owns 356 shares of the semiconductor company’s stock worth $28,000 after buying an additional 281 shares in the last quarter. 83.51% of the stock is owned by hedge funds and other institutional investors.

Marvell Technology Stock Up 6.2%

The firm has a market cap of $85.01 billion, a P/E ratio of -757.82, a P/E/G ratio of 1.10 and a beta of 1.93. The company has a current ratio of 1.88, a quick ratio of 1.44 and a debt-to-equity ratio of 0.30. The business has a 50-day moving average price of $86.75 and a 200-day moving average price of $76.61.

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.