Marvell Technology (NASDAQ:MRVL) Shares Gap Up After Earnings Beat

Shares of Marvell Technology, Inc. (NASDAQ:MRVL) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $92.89, but opened at $100.04. Marvell Technology shares last traded at $98.9450, with a volume of 18,058,706 shares traded.

The semiconductor company reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.74 by $0.02. The company had revenue of $2.07 billion for the quarter, compared to analyst estimates of $2.06 billion. Marvell Technology had a return on equity of 13.31% and a net margin of 31.75%.Marvell Technology’s revenue for the quarter was up 36.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.43 EPS. Marvell Technology has set its Q4 2026 guidance at 0.740-0.840 EPS.

Marvell Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 30th. Shareholders of record on Friday, October 10th were issued a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend was Friday, October 10th. Marvell Technology’s payout ratio is 8.42%.

Marvell Technology declared that its Board of Directors has initiated a share repurchase plan on Wednesday, September 24th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the semiconductor company to reacquire up to 7.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

MRVL has been the subject of a number of analyst reports. TD Cowen raised their price objective on shares of Marvell Technology from $90.00 to $100.00 and gave the stock a “hold” rating in a report on Wednesday. HSBC initiated coverage on shares of Marvell Technology in a research report on Monday, November 24th. They issued a “hold” rating and a $85.00 price target for the company. Craig Hallum reaffirmed a “buy” rating and set a $141.00 price objective on shares of Marvell Technology in a report on Wednesday. KeyCorp upped their price objective on Marvell Technology from $90.00 to $130.00 and gave the company an “overweight” rating in a research note on Wednesday. Finally, BNP Paribas upgraded Marvell Technology to a “strong-buy” rating in a research report on Friday, August 29th. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and fourteen have assigned a Hold rating to the stock. According to MarketBeat.com, Marvell Technology presently has a consensus rating of “Moderate Buy” and a consensus price target of $111.00.

Insiders Place Their Bets

In other Marvell Technology news, CEO Matthew J. Murphy bought 13,600 shares of the 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 completion of the purchase, the chief executive officer owned 268,637 shares in the company, valued at $20,709,226.33. This represents a 5.33% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Sandeep Bharathi purchased 3,400 shares of Marvell Technology stock in a transaction that occurred on Thursday, September 25th. The shares were bought at an average price of $78.03 per share, for a total transaction of $265,302.00. Following the transaction, the insider owned 73,392 shares in the company, valued at $5,726,777.76. This represents a 4.86% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders bought 27,200 shares of company stock valued at $2,109,632. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Marvell Technology

A number of institutional investors have recently modified their holdings of MRVL. Vanguard Group Inc. grew its stake in shares of Marvell Technology by 23.5% during the third quarter. Vanguard Group Inc. now owns 79,610,208 shares of the semiconductor company’s stock valued at $6,692,830,000 after purchasing an additional 15,166,976 shares during the last quarter. Norges Bank acquired a new position in Marvell Technology during the 2nd quarter worth $716,713,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its position in Marvell Technology by 4,758.5% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 7,036,216 shares of the semiconductor company’s stock valued at $544,603,000 after buying an additional 6,891,393 shares during the last quarter. Nuveen LLC bought a new position in Marvell Technology in the 1st quarter valued at $399,587,000. Finally, Ameriprise Financial Inc. increased its stake in shares of Marvell Technology by 59.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 16,624,827 shares of the semiconductor company’s stock valued at $1,397,751,000 after buying an additional 6,217,952 shares during the period. 83.51% of the stock is owned by institutional investors.

Marvell Technology Trading Down 2.0%

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 company has a market cap of $84.65 billion, a P/E ratio of 34.45, a P/E/G ratio of 1.20 and a beta of 1.93. The business has a 50-day moving average price of $87.44 and a two-hundred day moving average price of $76.92.

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.