Marvell Technology (NASDAQ:MRVL) Trading Down 7.5% – Should You Sell?

Marvell Technology, Inc. (NASDAQ:MRVL) fell 7.5% during trading on Thursday . The company traded as low as $278.60 and last traded at $278.9380. 14,619,061 shares were traded during trading, a decline of 39% from the average session volume of 23,907,033 shares. The stock had previously closed at $301.65.

Marvell Technology News Roundup

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?

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MRVL. Morgan Stanley boosted their target price on shares of Marvell Technology from $172.00 to $195.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 28th. Susquehanna upped their price target on shares of Marvell Technology from $100.00 to $230.00 and gave the company a “positive” rating in a report on Tuesday, May 26th. Oppenheimer upped their price target on shares of Marvell Technology from $200.00 to $250.00 and gave the company an “outperform” rating in a report on Thursday, May 28th. Zacks Research raised shares of Marvell Technology from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 31st. Finally, KeyCorp upped their price target on shares of Marvell Technology from $130.00 to $260.00 and gave the company an “overweight” rating in a report on Thursday, May 28th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, Marvell Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $218.58.

Marvell Technology Stock Down 16.7%

The firm’s 50-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 P/E ratio of 90.23, a price-to-earnings-growth ratio of 2.10 and a beta of 2.29. The company has a quick ratio of 2.66, a current ratio of 3.28 and a debt-to-equity ratio of 0.27.

Marvell Technology (NASDAQ:MRVL) last released 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. The business had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.41 billion. Marvell Technology had a net margin of 28.99% and a return on equity of 13.83%. The company’s quarterly revenue was up 27.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.62 earnings per share. Marvell Technology has set its Q2 2027 guidance at 0.880-0.980 EPS. As a group, research 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. Stockholders of record on Friday, April 10th were given a dividend of $0.06 per share. The ex-dividend date was Friday, April 10th. This represents a $0.24 annualized dividend and a dividend yield of 0.1%. Marvell Technology’s dividend payout ratio is currently 8.22%.

Insider Buying and Selling at Marvell Technology

In other news, CEO Matthew J. Murphy sold 30,000 shares of the company’s stock in a transaction dated Thursday, March 26th. The shares were sold at an average price of $98.70, for a total transaction of $2,961,000.00. Following the completion of the transaction, the chief executive officer owned 310,106 shares in the company, valued at approximately $30,607,462.20. This represents a 8.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Willem A. Meintjes sold 30,000 shares of the company’s stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $134.01, for a total transaction of $4,020,300.00. Following the transaction, the chief financial officer owned 154,111 shares of the company’s stock, valued at $20,652,415.11. This represents a 16.29% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. In the last ninety days, insiders have 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

Several institutional investors have recently modified their holdings of MRVL. Laurel Wealth Advisors LLC bought a new position in Marvell Technology in the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC grew its position in 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 buying an additional 225 shares in the last quarter. Jessup Wealth Management Inc bought a new position in Marvell Technology in the 4th quarter valued at about $25,000. Cherry Tree Wealth Management LLC bought a new position in Marvell Technology in the 4th quarter valued at about $26,000. Finally, MidFirst Bank bought a new position in Marvell Technology in the 4th quarter valued at about $28,000. Institutional investors own 83.51% of the company’s stock.

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.