Marvell Technology (NASDAQ:MRVL) Trading Up 1.7% – Here’s Why

Marvell Technology, Inc. (NASDAQ:MRVL) shot up 1.7% on Friday . The company traded as high as $89.53 and last traded at $89.2370. 11,234,111 shares changed hands during trading, a decline of 41% from the average session volume of 19,121,365 shares. The stock had previously closed at $87.72.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MRVL. Wall Street Zen raised Marvell Technology from a “hold” rating to a “buy” rating in a research note on Saturday, September 13th. BNP Paribas raised shares of Marvell Technology to a “strong-buy” rating in a report on Friday, August 29th. Cowen downgraded shares of Marvell Technology from a “buy” rating to a “hold” rating in a research report on Tuesday, September 30th. Barclays reaffirmed an “equal weight” rating and issued a $80.00 target price on shares of Marvell Technology in a report on Monday, October 20th. Finally, Roth Capital reiterated a “buy” rating on shares of Marvell Technology in a research report on Wednesday, October 15th. Three analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and fifteen have given a Hold rating to the company. Based on data from MarketBeat.com, Marvell Technology currently has an average rating of “Moderate Buy” and a consensus target price of $94.41.

Marvell Technology Price Performance

The company has a quick ratio of 1.44, a current ratio of 1.88 and a debt-to-equity ratio of 0.30. The business’s 50 day moving average price is $85.77 and its 200-day moving average price is $75.90. The company has a market cap of $76.93 billion, a PE ratio of -686.44, a price-to-earnings-growth ratio of 1.10 and a beta of 1.95.

Marvell Technology (NASDAQ:MRVL) last released its earnings results on Thursday, August 28th. The semiconductor company reported $0.67 EPS for the quarter, meeting the consensus estimate of $0.67. The company had revenue of $2.01 billion during the quarter, compared to analysts’ expectations of $2.01 billion. Marvell Technology had a positive return on equity of 11.01% and a negative net margin of 1.43%.The business’s revenue was up 57.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.30 EPS. As a group, analysts forecast that Marvell Technology, Inc. will post 0.91 earnings per share for the current year.

Marvell Technology Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 30th. Shareholders of record on Friday, October 10th were paid a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Friday, October 10th. Marvell Technology’s dividend payout ratio (DPR) is presently -184.62%.

Marvell Technology declared that its Board of Directors has initiated a stock 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 buy up to 7.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other Marvell Technology news, COO Chris Koopmans bought 6,800 shares of the company’s stock in a transaction that occurred on Thursday, September 25th. The shares were acquired at an average cost of $78.03 per share, for a total transaction of $530,604.00. Following the acquisition, the chief operating officer directly owned 104,825 shares of the company’s stock, valued at $8,179,494.75. This trade represents a 6.94% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Matthew J. Murphy acquired 13,600 shares of the business’s stock in a transaction 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 owned 268,637 shares in the company, valued at approximately $20,709,226.33. This trade represents a 5.33% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 27,200 shares of company stock valued at $2,109,632 in the last quarter. 0.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

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

About Marvell Technology

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.