Marvell Technology (NASDAQ:MRVL) Shares Up 32.7% – Still a Buy?

Marvell Technology, Inc. (NASDAQ:MRVL)’s share price rose 32.7% during trading on Tuesday . The stock traded as high as $225.14 and last traded at $291.1840. Approximately 32,783,722 shares traded hands during trading, an increase of 21% from the average daily volume of 27,094,582 shares. The stock had previously closed at $219.43.

Marvell Technology News Summary

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

• Positive Sentiment: Nvidia’s Jensen Huang publicly praised Marvell as a key AI infrastructure partner, reinforcing the bull case for its custom chips, networking silicon, and optical interconnect products. Reuters: Marvell Technology surges after Nvidia’s Huang calls it ‘next trillion-dollar company’
• Positive Sentiment: Marvell’s recent launch of its Teralynx T100 switch silicon, plus strong AI data-center demand, is being viewed as validation that its products are gaining share in next-generation AI networking. Yahoo Finance: Marvell’s ‘Trillion-Dollar’ Potential Propels Firm to All-Time High
• Positive Sentiment: Wall Street has been raising price targets and turning more constructive after Marvell’s earnings, which adds support to the stock’s move higher. Motley Fool: Why Marvell Technology Bumped Higher Again on Wednesday
• Neutral Sentiment: Broadcom’s strong AI-driven results helped keep semiconductor sentiment hot, supporting the sector-wide rally that has benefited MRVL. Yahoo Finance: Broadcom Beats Second-Quarter Views as AI Revenue More Than Doubles
• Neutral Sentiment: Some commentary says the stock’s valuation is now very rich after the huge run-up, which could limit upside if results or AI enthusiasm cool. Zacks: Micron vs. Marvell: Only One AI Semiconductor Stock Is a Buy This June
• Negative Sentiment: A recent insider sale by Marvell COO Chris Koopmans may create some caution, even though it was executed under a pre-arranged trading plan. Insider Trades: Marvell Technology COO Sells Stock

Analysts Set New Price Targets

A number of research analysts have issued reports on MRVL shares. William Blair restated an “outperform” rating on shares of Marvell Technology in a report on Thursday, May 28th. Erste Group Bank started coverage on Marvell Technology in a research report on Thursday, April 2nd. They set a “buy” rating on the stock. Cantor Fitzgerald boosted their price objective on Marvell Technology from $190.00 to $220.00 and gave the company a “neutral” rating in a research report on Thursday, May 28th. Melius Research set a $220.00 price objective on Marvell Technology in a research report on Monday, May 18th. Finally, Oppenheimer increased their target price on Marvell Technology from $200.00 to $250.00 and gave the stock an “outperform” rating in a research note on Thursday, May 28th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Marvell Technology has an average rating of “Moderate Buy” and an average target price of $215.19.

Marvell Technology Trading Up 3.7%

The company has a debt-to-equity ratio of 0.27, a current ratio of 3.28 and a quick ratio of 2.66. The business’s 50-day moving average is $157.06 and its two-hundred day moving average is $109.88. The firm has a market cap of $263.88 billion, a P/E ratio of 103.30, a P/E/G ratio of 1.92 and a beta of 2.29.

Marvell Technology (NASDAQ:MRVL) last issued its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $0.80 EPS for the quarter, hitting the consensus estimate of $0.80. Marvell Technology had a net margin of 28.99% and a return on equity of 13.83%. The firm had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.41 billion. During the same period in the previous year, the firm posted $0.62 EPS. The company’s revenue for the quarter was up 27.6% on a year-over-year basis. Marvell Technology has set its Q2 2027 guidance at 0.880-0.980 EPS. As a group, analysts predict that Marvell Technology, Inc. will post 3.05 earnings per share for the current fiscal year.

Marvell Technology Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Friday, April 10th were issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 0.1%. The ex-dividend date was Friday, April 10th. Marvell Technology’s dividend payout ratio is presently 8.22%.

Insider Activity

In other news, insider Sandeep Bharathi sold 66,892 shares of the company’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 transaction of $8,719,372.20. Following the sale, the insider owned 55,199 shares in the company, valued at $7,195,189.65. This represents a 54.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 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, CEO Matthew J. Murphy sold 30,000 shares of the stock in a transaction that occurred on Thursday, March 26th. The shares were sold at an average price of $98.70, for a total value of $2,961,000.00. Following the completion of the sale, the chief executive officer directly owned 310,106 shares of the company’s stock, valued at approximately $30,607,462.20. The trade was a 8.82% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 255,060 shares of company stock valued at $31,959,772. Corporate insiders own 0.12% of the company’s stock.

Hedge Funds Weigh In On Marvell Technology

A number of institutional investors have recently added to or reduced their stakes in the company. Laurel Wealth Advisors LLC bought a new position in shares of Marvell Technology in the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC raised its holdings in shares of Marvell Technology by 978.3% in the 1st quarter. Hilton Head Capital Partners LLC now owns 248 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 225 shares during the period. Jessup Wealth Management Inc bought a new stake in shares of Marvell Technology in the 4th quarter valued at about $25,000. Cherry Tree Wealth Management LLC acquired a new stake in Marvell Technology in the 4th quarter valued at about $26,000. Finally, MidFirst Bank acquired a new stake in Marvell Technology in the 4th quarter valued at about $28,000. 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.