Marvell Technology (NASDAQ:MRVL) Stock Price Drops 2.3% - Here's What Happened

Marvell Technology, Inc. (NASDAQ:MRVL) experienced a decline in its stock price, falling by 2.3% on Monday. The stock traded as low as $109.78 before closing at $110.96. During the midday trading session, around 1,536,286 shares exchanged hands, which is a significant reduction, about 88%, from the average daily trading volume of 12,586,775 shares. It had closed the previous day at $113.62.

Market Analysis and Ratings Updates

In the wake of the stock price drop, various brokerages have updated their ratings for Marvell Technology. StockNews.com raised its rating for Marvell from "sell" to "hold" in its recent report. On December 4th, Oppenheimer increased their price target from $110.00 to $125.00, assigning an "outperform" rating to the stock. Additionally, Piper Sandler maintained an "overweight" rating, adjusting their target price from $100.00 to $120.00. Similarly, Loop Capital revised its price target from $95.00 to $110.00 while offering a "hold" rating. Barclays also raised their price objective from $85.00 to $115.00, categorizing the stock as "overweight." Currently, three analysts have rated Marvell with a hold, and twenty-four have a buy rating. MarketBeat data indicates that the stock holds an average rating of "Moderate Buy" with a consensus target price of $119.76.

Performance Metrics

Marvell Technology has a market capitalization of approximately $97.57 billion, with a price-to-earnings ratio of -66.33 and a PEG ratio of 4.03. The company's 50-day and 200-day simple moving averages stand at $97.45 and $79.91, respectively. The firm reports a debt-to-equity ratio of 0.30, a quick ratio of 1.11, and a current ratio of 1.60.

Dividend Announcements

In other developments, Marvell Technology announced a quarterly dividend scheduled for payment on January 30th. Shareholders on record by January 10th will receive a dividend of $0.06 per share. The ex-dividend date for this payment is also January 10th. This payout translates to an annualized dividend of $0.24, yielding 0.21%. The company's current payout ratio stands at -14.12%.

Insider Activity

Recent insider transactions reveal noteworthy activity. EVP Mark Casper sold 2,500 shares on October 1st at an average price of $70.83, totaling $177,075. Following this trade, he retains 22,494 shares valued at approximately $1,593,250.02. Additionally, CFO Willem A. Meintjes sold 1,500 shares on December 16th at an average of $122.50, amounting to $183,750. As of now, he possesses 112,711 shares valued near $13,807,097.50. Collectively, insiders sold around 175,000 shares worth $14,444,745 over the last quarter. Currently, insiders hold about 0.33% of Marvell Technology's stock.

Institutional Investment Trends

Institutional investors have also shown a keen interest in Marvell Technology's shares. State Street Corp increased its stake by 0.3% during the third quarter, now owning 19,943,655 shares valued at $1,438,336,000 after acquiring an additional 68,893 shares. Ameriprise Financial boosted its holdings by 24.1%, owning 11,623,872 shares valued at $812,509,000 post-acquisition of 2,254,610 shares. Geode Capital management increased its position by 2.0%, owning 11,388,139 shares valued at $818,916,000 after purchasing an extra 219,692 shares. Wellington Management Group LLP grew its stake by 4.3%, now holding 8,694,320 shares worth $627,034,000 after expanding its position with 359,005 additional shares. Lastly, Van ECK Associates Corp raised its stake by 26.6%, owning 7,471,823 shares valued at $538,868,000 after purchasing 1,570,050 shares. Overall, institutional investors cover approximately 83.51% of the company's shares.

About Marvell Technology

Marvell Technology, Inc. and its subsidiaries specialize in providing semiconductor solutions for data infrastructure, covering a wide range from data center core to network edge applications. The company is known for its development and scaling of complex System-on-a-Chip architectures, which integrate various functionalities including analog, mixed-signal, and digital signal processing.

Marvell, Stocks, Dividend