Marvell Technology, Inc. (NASDAQ:MRVL) experienced a decline of 1.2% in its stock price during trading on Wednesday, closing at $86.64 after reaching a low of $86.10. The trading session saw a total of 5,332,221 shares exchanged, marking a significant drop of 72% from the average volume of 19,267,008 shares. The stock had previously closed at $87.68.
Analysts have recently provided various ratings on Marvell Technology’s stock. Notably, on December 3, Susquehanna set a target price of $120.00 with a “positive” rating. TD Cowen raised its price target from $90.00 to $100.00 while maintaining a “hold” rating. Additionally, Piper Sandler established a target of $110.00, and Wells Fargo & Company increased its price objective from $90.00 to $135.00, also assigning an “overweight” rating. Currently, four analysts have rated the stock as a Strong Buy, while twenty have given it a Buy rating, and fourteen have assigned a Hold rating. According to data from MarketBeat.com, Marvell Technology holds an average rating of “Moderate Buy” with a consensus target price of $111.25.
Earnings Performance and Future Projections
Marvell Technology reported its latest earnings results on December 2, revealing earnings per share (EPS) of $0.76 for the quarter, surpassing analysts’ expectations of $0.74 by $0.02. The company achieved a return on equity of 13.15% and a net margin of 31.75%. Revenue for the quarter reached $2.07 billion, slightly exceeding analyst estimates of $2.06 billion and reflecting a substantial increase of 36.8% compared to the same period last year, when the company posted an EPS of $0.43. Looking ahead, Marvell has set its guidance for Q4 2026 at an EPS between $0.740 and $0.840, with analysts projecting an EPS of $0.91 for the current fiscal year.
In addition, the company announced a quarterly dividend of $0.06 per share, scheduled for payment on January 29, 2024. Shareholders of record on January 9 will be eligible for this dividend, which equates to an annualized yield of 0.3%. Marvell Technology’s current dividend payout ratio stands at 8.42%.
Stock Buyback and Insider Transactions
On September 24, Marvell Technology’s board approved a stock buyback program that allows the company to repurchase up to $5.00 billion in shares, representing approximately 7.8% of its stock. Such buyback programs often indicate that the board perceives the company’s shares as undervalued.
In related news, CFO Willem A. Meintjes acquired 3,400 shares of the company’s stock on September 25 at an average price of $78.03, totaling $265,302. Following this transaction, he now owns 132,159 shares valued at approximately $10.31 million, marking a 2.64% increase in ownership. Similarly, COO Chris Koopmans purchased 6,800 shares on the same day for $530,604, raising his holdings to 104,825 shares worth around $8.18 million—a 6.94% increase. Over the last quarter, insiders have collectively acquired 27,200 shares valued at $2.11 million, with corporate insiders owning 0.19% of the company’s stock.
Institutional investors have also made significant adjustments to their holdings in Marvell Technology. For instance, Vanguard Group Inc. increased its stake by 23.5% in the third quarter, owning 79,610,208 shares worth approximately $6.69 billion after acquiring an additional 15,166,976 shares. Other notable changes include Norges Bank’s new stake worth $716.71 million and DZ BANK AG’s 4,758.5% growth in stake during the second quarter.
As of now, approximately 83.51% of Marvell Technology’s stock is held by institutional investors and hedge funds.
Founded in 1995 and headquartered in Santa Clara, California, Marvell Technology is a global semiconductor company specializing in integrated circuits and related software for data infrastructure, networking, storage, and connectivity markets. Its diverse product portfolio includes system-on-chip (SoC) solutions, Ethernet physical-layer transceivers, and security processors, among others, enabling high-performance data centers and automotive applications.
