Zacks Research Provides Positive Earnings Outlook for Marvell Technology

On December 17, 2024, Zacks Research announced an optimistic update on Marvell Technology, Inc. (NASDAQ: MRVL). The firm has revised its earnings per share (EPS) estimate for the fiscal year 2025, raising it from $0.77 to $0.92. This suggests a more favorable outlook for the semiconductor company, particularly as the current consensus estimate stands at $0.89 per share.

Multiple research institutions have also recently shared their assessments on Marvell Technology. KeyCorp increased its price target for the stock from $95.00 to $125.00, maintaining an “overweight” rating in a report released on December 4. Similarly, Evercore ISI raised its target price from $98.00 to $122.00, also recommending the stock as an “outperform” on December 2. Cantor Fitzgerald followed suit, adjusting its price target from $120.00 to $135.00 with an “overweight” rating. Citigroup increased its price objective from $91.00 to $112.00, giving a “buy” rating on December 4. Lastly, The Goldman Sachs Group raised its target from $87.00 to $115.00, maintaining a “buy” rating as well. Overall, analysis from MarketBeat.com indicates that Marvell Technology has three hold ratings and twenty-four buy ratings, resulting in a summary rating of “Moderate Buy” with an average price target of $119.04.

Marvell Technology's Market Performance

On Thursday, shares of MRVL opened at $109.11. Marvell Technology's market capitalization is approximately $94.41 billion. The company has a PE ratio of -64.18, a P/E/G ratio of 3.72, and a beta of 1.46. Its stock has shown significant movement in the past year, with a twelve-month low of $53.19 and a high of $126.15. The stock’s 50-day moving average is at $92.44, while the 200-day moving average stands at $77.65. Indicators such as the current ratio (1.60) and quick ratio (1.11) highlight the company's liquidity, and a debt-to-equity ratio of 0.30 shows a moderate level of leverage.

Dividend Announcement by Marvell Technology

In recent announcements, Marvell Technology revealed a quarterly dividend that will be paid on January 30, 2025. Shareholders on record as of January 10 can expect a $0.06 per share dividend, amounting to an annualized dividend of $0.24, representing a yield of 0.22%. The ex-dividend date is also set for January 10. Currently, the company's dividend payout ratio is -14.12%, indicating negligible dividends relative to earnings.

Recent Insider Transactions

In connection with insider trading activities, Executive Vice President Mark Casper sold 2,500 shares of the company on October 1, receiving an average price of $70.83 per share, totaling $177,075. Following the transaction, he retains 22,494 shares valued at around $1,593,250. Additionally, CEO Matthew J. Murphy purchased 13,000 shares on October 14 at an average price of $77.63 per share, bringing his total holdings to 221,915 shares worth approximately $17,227,261. This acquisition reflects a 6.22% increase in his stake. Overall, during the last quarter, insiders sold 175,000 shares collectively valued at about $14.4 million, indicating that insiders hold only 0.33% of the company’s shares.

Institutional Investments in Marvell Technology

Several hedge funds and institutional investors have made significant adjustments to their stakes in Marvell Technology. For instance, State Street Corp raised its holding by 0.3% during the third quarter, now owning nearly 19.94 million shares worth approximately $1.44 billion. Ameriprise Financial increased its position by 24.1% in the second quarter, holding 11.62 million shares valued at $812.5 million after acquiring additional shares. Geode Capital Management also raised its stake by 2.0%, now owning over 11.38 million shares valued at around $818.92 million. Wellington Management and Van ECK Associates have also enhanced their holdings in the company. Institutional investors collectively hold about 83.51% of Marvell Technology's stock.

About Marvell Technology

Marvell Technology, Inc. is a prominent provider of semiconductor solutions for data infrastructure, serving various stages from core data centers to network edges. The company is known for developing complex System-on-a-Chip architectures that integrate a range of functionalities including analog, mixed-signal, and digital signal processing.

Earnings, Estimates, Marvell, Investments, Dividends