Marvell Technology (NASDAQ:MRVL) Trading 2% Higher on Better-Than-Expected Earnings

Marvell Technology, Inc. (NASDAQ:MRVL)’s stock price traded up 2% during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $93.86 and last traded at $92.89. 29,361,757 shares traded hands during mid-day 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 the consensus estimate 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 firm had revenue of $2.07 billion for the quarter, compared to the consensus estimate of $2.06 billion. During the same quarter in the prior year, the firm posted $0.43 earnings per share. The business’s revenue was up 36.8% on a year-over-year basis. Marvell Technology has set its Q4 2026 guidance at 0.740-0.840 EPS.

Marvell Technology Dividend Announcement

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

Marvell Technology announced that its board has approved a share buyback program on Wednesday, September 24th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the semiconductor company to buy up to 7.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

MRVL has been the subject of several recent analyst reports. Wells Fargo & Company decreased their price target on Marvell Technology from $95.00 to $90.00 and set an “overweight” rating for the company in a research note on Friday, August 29th. Cantor Fitzgerald reiterated a “neutral” rating and issued a $75.00 price objective on shares of Marvell Technology in a report on Friday, August 29th. Hsbc Global Res upgraded shares of Marvell Technology to a “hold” rating in a research note on Monday, November 24th. Barclays reaffirmed an “equal weight” rating and set a $80.00 price target on shares of Marvell Technology in a report on Monday, October 20th. Finally, Morgan Stanley lifted their price target on shares of Marvell Technology from $76.00 to $86.00 and gave the stock an “equal weight” rating in a research note on Monday. Three 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 company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $94.72.

Insider Buying and Selling

In related news, insider Sandeep Bharathi purchased 3,400 shares of Marvell Technology stock in a transaction on Thursday, September 25th. The stock was acquired at an average price of $78.03 per share, for a total transaction of $265,302.00. Following the completion of the transaction, the insider directly owned 73,392 shares in the company, valued at $5,726,777.76. This represents a 4.86% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Matthew J. Murphy acquired 13,600 shares of the firm’s stock in a transaction dated 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 of the company’s stock, valued at approximately $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. Over the last ninety days, insiders acquired 27,200 shares of company stock worth $2,109,632. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Marvell Technology

A number of hedge funds have recently modified their holdings of the company. Harbour Investments Inc. boosted its holdings in Marvell Technology by 48.1% in the 1st quarter. Harbour Investments Inc. now owns 3,062 shares of the semiconductor company’s stock worth $189,000 after buying an additional 994 shares during the period. Moors & Cabot Inc. lifted its position in shares of Marvell Technology by 35.3% in the first quarter. Moors & Cabot Inc. now owns 6,913 shares of the semiconductor company’s stock valued at $426,000 after acquiring an additional 1,805 shares in the last quarter. Commerce Bank grew its position in shares of Marvell Technology by 1.0% during the first quarter. Commerce Bank now owns 31,869 shares of the semiconductor company’s stock worth $1,962,000 after purchasing an additional 331 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in Marvell Technology by 4.3% during the 1st quarter. PNC Financial Services Group Inc. now owns 80,503 shares of the semiconductor company’s stock valued at $4,957,000 after purchasing an additional 3,336 shares during the period. Finally, Banco Santander S.A. raised its stake in Marvell Technology by 73.3% during the 1st quarter. Banco Santander S.A. now owns 6,275 shares of the semiconductor company’s stock valued at $386,000 after purchasing an additional 2,654 shares during the period. 83.51% of the stock is currently owned by institutional investors.

Marvell Technology Trading Up 2.0%

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 company has a market capitalization of $80.08 billion, a PE ratio of -714.54, a PEG ratio of 1.10 and a beta of 1.95. The stock has a fifty day moving average of $86.75 and a 200 day moving average 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.