Marvell Technology (NASDAQ:MRVL) Trading Down 7.5% – Here’s Why

Marvell Technology, Inc. (NASDAQ:MRVL)’s share price dropped 7.5% on Monday . The company traded as low as $86.61 and last traded at $87.81. Approximately 21,384,970 shares traded hands during trading, an increase of 25% from the average daily volume of 17,126,137 shares. The stock had previously closed at $94.88.

Analysts Set New Price Targets

MRVL has been the topic of a number of recent analyst reports. Cantor Fitzgerald reissued a “neutral” rating on shares of Marvell Technology in a research note on Friday, March 6th. Benchmark upgraded Marvell Technology from a “hold” rating to a “buy” rating and set a $130.00 target price for the company in a report on Friday, March 6th. Bank of America raised Marvell Technology from a “neutral” rating to a “buy” rating and boosted their price target for the company from $90.00 to $110.00 in a research note on Friday, March 6th. Summit Insights upgraded Marvell Technology from a “hold” rating to a “buy” rating in a report on Wednesday, December 3rd. Finally, Citigroup raised their price objective on shares of Marvell Technology from $113.00 to $118.00 and gave the stock a “buy” rating in a research report on Friday, March 6th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $117.24.

Marvell Technology Price Performance

The business has a 50-day moving average of $83.36 and a 200 day moving average of $84.58. The company has a current ratio of 2.01, a quick ratio of 1.58 and a debt-to-equity ratio of 0.28. The firm has a market capitalization of $76.79 billion, a P/E ratio of 28.51, a price-to-earnings-growth ratio of 0.86 and a beta of 1.97.

Marvell Technology (NASDAQ:MRVL) last announced its quarterly earnings results on Thursday, March 5th. The semiconductor company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.21 billion. Marvell Technology had a return on equity of 14.22% and a net margin of 32.58%.The company’s quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.60 earnings per share. Marvell Technology has set its Q1 2027 guidance at 0.740-0.840 EPS. On average, sell-side analysts predict that Marvell Technology, Inc. will post 0.91 earnings per share for the current fiscal year.

Marvell Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Friday, April 10th will be given a $0.06 dividend. The ex-dividend date of this dividend is Friday, April 10th. This represents a $0.24 annualized dividend and a yield of 0.3%. Marvell Technology’s dividend payout ratio (DPR) is presently 7.79%.

Insider Buying and Selling at Marvell Technology

In other Marvell Technology news, insider Sandeep Bharathi sold 44,414 shares of the firm’s stock in a transaction on Thursday, March 26th. The shares were sold at an average price of $99.61, for a total value of $4,424,078.54. Following the transaction, the insider directly owned 55,199 shares of the company’s stock, valued at approximately $5,498,372.39. This trade represents a 44.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Mark Casper sold 5,000 shares of Marvell Technology stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $93.08, for a total transaction of $465,400.00. Following the transaction, the executive vice president owned 19,418 shares of the company’s stock, valued at $1,807,427.44. This represents a 20.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 79,414 shares of company stock worth $7,850,479. 0.33% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Marvell Technology

Large investors have recently added to or reduced their stakes in the business. Intech Investment Management LLC raised its stake in shares of Marvell Technology by 3.9% in the first quarter. Intech Investment Management LLC now owns 28,784 shares of the semiconductor company’s stock worth $1,772,000 after purchasing an additional 1,085 shares during the last quarter. Choreo LLC grew its holdings in Marvell Technology by 2.9% during the second quarter. Choreo LLC now owns 13,347 shares of the semiconductor company’s stock worth $1,033,000 after buying an additional 379 shares in the last quarter. Elevation Point Wealth Partners LLC purchased a new stake in Marvell Technology in the 2nd quarter valued at $281,000. Northwestern Mutual Wealth Management Co. raised its position in Marvell Technology by 0.6% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 682,309 shares of the semiconductor company’s stock valued at $52,811,000 after buying an additional 4,154 shares during the last quarter. Finally, Hsbc Holdings PLC lifted its stake in Marvell Technology by 1.6% during the 2nd quarter. Hsbc Holdings PLC now owns 857,033 shares of the semiconductor company’s stock valued at $66,265,000 after acquiring an additional 13,741 shares in the last quarter. Institutional investors own 83.51% of the company’s stock.

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.