Marvell Technology (NASDAQ:MRVL) Shares Up 2% After Strong Earnings

Marvell Technology, Inc. (NASDAQ:MRVL) shares shot up 2% on Tuesday following a stronger than expected earnings report. The stock traded as high as $93.86 and last traded at $92.89. 29,361,757 shares traded hands during trading, an increase of 53% from the average session volume of 19,147,768 shares. The stock had previously closed at $91.10.

The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.02. Marvell Technology had a negative net margin of 1.43% and a positive return on equity of 11.01%. The company had revenue of $2.07 billion during the quarter, compared to the consensus estimate of $2.06 billion. Marvell Technology has set its Q4 2026 guidance at 0.740-0.840 EPS.

Marvell Technology Dividend Announcement

The company also recently disclosed 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. The ex-dividend date was Friday, October 10th. This represents a $0.24 annualized dividend and a dividend yield of 0.3%. Marvell Technology’s dividend payout ratio is -184.62%.

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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on MRVL. Oppenheimer boosted their target price on Marvell Technology from $95.00 to $115.00 and gave the stock an “outperform” rating in a research report on Friday, October 10th. HSBC initiated coverage on shares of Marvell Technology in a research note on Monday, November 24th. They issued a “hold” rating and a $85.00 price objective for the company. Morgan Stanley lifted their target price on shares of Marvell Technology from $76.00 to $86.00 and gave the stock an “equal weight” rating in a research report on Monday. Wall Street Zen upgraded shares of Marvell Technology from a “hold” rating to a “buy” rating in a research report on Saturday, September 13th. Finally, Wells Fargo & Company reduced their price objective on Marvell Technology from $95.00 to $90.00 and set an “overweight” rating on the stock in a research note on Friday, August 29th. Three investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and fifteen have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $94.72.

Insider Activity

In other Marvell Technology news, CEO Matthew J. Murphy purchased 13,600 shares of Marvell Technology stock in a transaction that occurred on Thursday, September 25th. The shares were bought at an average price of $77.09 per share, for a total transaction of $1,048,424.00. Following the acquisition, the chief executive officer directly owned 268,637 shares in the company, valued at approximately $20,709,226.33. This trade 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, insider Sandeep Bharathi purchased 3,400 shares of the stock in a transaction on Thursday, September 25th. The shares were acquired at an average cost of $78.03 per share, with a total value of $265,302.00. Following the transaction, the insider directly owned 73,392 shares in the company, valued at $5,726,777.76. The trade was a 4.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 27,200 shares of company stock worth $2,109,632 over the last ninety days. 0.19% of the stock is owned by insiders.

Hedge Funds Weigh In On Marvell Technology

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in Marvell Technology by 23.5% during the 3rd quarter. Vanguard Group Inc. now owns 79,610,208 shares of the semiconductor company’s stock valued at $6,692,830,000 after purchasing an additional 15,166,976 shares during the period. State Street Corp raised its stake in Marvell Technology by 2.8% in the third quarter. State Street Corp now owns 21,157,092 shares of the semiconductor company’s stock worth $1,778,677,000 after buying an additional 583,832 shares in the last quarter. Brown Advisory Inc. lifted its holdings in Marvell Technology by 8.0% in the second quarter. Brown Advisory Inc. now owns 20,840,336 shares of the semiconductor company’s stock worth $1,613,044,000 after buying an additional 1,539,809 shares during the period. Goldman Sachs Group Inc. boosted its position in Marvell Technology by 32.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 20,661,308 shares of the semiconductor company’s stock valued at $1,272,117,000 after acquiring an additional 5,050,159 shares in the last quarter. Finally, Ameriprise Financial Inc. grew its holdings in shares of Marvell Technology by 59.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 16,624,827 shares of the semiconductor company’s stock worth $1,397,751,000 after acquiring an additional 6,217,952 shares during the period. Institutional investors own 83.51% of the company’s stock.

Marvell Technology Price Performance

The stock has a market cap of $80.08 billion, a P/E ratio of -714.54, a price-to-earnings-growth ratio of 1.10 and a beta of 1.95. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.44 and a current ratio of 1.88. The firm has a 50-day moving average price of $86.38 and a 200-day moving average price of $76.40.

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.