Marvell Technology (NASDAQ:MRVL) Trading Up 4.9% – Still a Buy?

Marvell Technology, Inc. (NASDAQ:MRVL) shares rose 4.9% during trading on Thursday . The stock traded as high as $321.50 and last traded at $316.43. Approximately 85,392,414 shares traded hands during trading, an increase of 247% from the average daily volume of 24,608,125 shares. The stock had previously closed at $301.65.

Marvell Technology News Summary

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

• Positive Sentiment: Raymond James raised its price target on Marvell to $235 from $105 and reiterated a Strong Buy rating, reflecting continued analyst confidence. Raymond James Raises its Price Target on Marvell (MRVL) to $235 from $105
• Neutral Sentiment: Marvell received unusual call-option activity, which may signal trader interest, but it does not by itself change the fundamental outlook.
• Neutral Sentiment: There was ongoing speculation that Marvell could be added to the S&P 500 in an upcoming index rebalancing, which could provide a passive-fund boost if it happens.
• Negative Sentiment: Broader chip stocks sold off after Broadcom’s outlook disappointed Wall Street, dragging MRVL down with the sector. Micron, Marvell, and Broadcom lead chipmakers’ premarket losses
• Negative Sentiment: Several reports warned that Marvell was overbought after its rapid run-up, making it vulnerable to profit-taking and a momentum unwind. Why Is Marvell Technology Stock Falling On Friday?

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Benchmark lifted their price objective on Marvell Technology from $130.00 to $275.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Craig Hallum upped their target price on shares of Marvell Technology from $141.00 to $164.00 and gave the stock a “buy” rating in a research note on Friday, March 6th. Evercore reaffirmed an “outperform” rating and issued a $155.00 target price on shares of Marvell Technology in a report on Tuesday, May 19th. Stifel Nicolaus set a $321.00 price target on shares of Marvell Technology in a research note on Tuesday. Finally, KeyCorp increased their price objective on shares of Marvell Technology from $130.00 to $260.00 and gave the company an “overweight” rating in a research report on Thursday, May 28th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $218.58.

Marvell Technology Stock Performance

The company has a current ratio of 3.28, a quick ratio of 2.66 and a debt-to-equity ratio of 0.27. The firm’s fifty day moving average price is $164.84 and its 200-day moving average price is $112.56. The firm has a market cap of $230.48 billion, a price-to-earnings ratio of 90.23, a PEG ratio of 2.10 and a beta of 2.29.

Marvell Technology (NASDAQ:MRVL) last released its quarterly earnings data on Wednesday, May 27th. The semiconductor company reported $0.80 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.80. The company had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.41 billion. Marvell Technology had a net margin of 28.99% and a return on equity of 13.83%. Marvell Technology’s revenue for the quarter was up 27.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.62 earnings per share. Marvell Technology has set its Q2 2027 guidance at 0.880-0.980 EPS. Analysts expect that Marvell Technology, Inc. will post 3.04 earnings per share for the current year.

Marvell Technology Dividend Announcement

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

Insider Activity at Marvell Technology

In other Marvell Technology news, insider Sandeep Bharathi sold 66,892 shares of the business’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $130.35, for a total value of $8,719,372.20. Following the completion of the sale, the insider owned 55,199 shares in the company, valued at approximately $7,195,189.65. The trade was a 54.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Mark Casper sold 10,854 shares of the stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $107.01, for a total value of $1,161,486.54. Following the completion of the sale, the executive vice president directly owned 4,023 shares of the company’s stock, valued at $430,501.23. The trade was a 72.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 255,060 shares of company stock valued at $31,959,772 over the last 90 days. 0.12% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of MRVL. Vanguard Group Inc. grew its holdings in shares of Marvell Technology by 23.5% during the third quarter. Vanguard Group Inc. now owns 79,610,208 shares of the semiconductor company’s stock worth $6,692,830,000 after buying an additional 15,166,976 shares during the last quarter. Norges Bank purchased a new stake in Marvell Technology during the 4th quarter valued at approximately $895,455,000. Ameriprise Financial Inc. lifted its position in 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. Franklin Resources Inc. grew its stake in shares of Marvell Technology by 47.0% in the 3rd quarter. Franklin Resources Inc. now owns 11,903,051 shares of the semiconductor company’s stock valued at $1,000,689,000 after purchasing an additional 3,805,431 shares during the last quarter. Finally, Rafferty Asset Management LLC grew its stake in shares of Marvell Technology by 111.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 5,810,359 shares of the semiconductor company’s stock valued at $449,722,000 after purchasing an additional 3,056,808 shares during the last quarter. 83.51% of the stock is currently owned by institutional investors and hedge funds.

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.