Investors in cash trouble should check out Marvell Technology Inc. (MRVL)

Marvell Technology Inc. (NASDAQ: MRVL) stock jumped 8.28% on Monday to $42.75 against a previous-day closing price of $39.48. With 13.61 million shares changed hands, the volume of the stock remained heavier than its average volume of 11.77 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $42.85 whereas the lowest price it dropped to was $40.10. The 52-week range on MRVL shows that it touched its highest point at $78.19 and its lowest point at $33.75 during that stretch. It currently has a 1-year price target of $62.39. With its current market cap of 35.63 billion, MRVL has annualized dividend of $0.24 while the current yield stands at 0.56%. Beta for the stock currently stands at 1.45.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MRVL was up-trending over the past week, with a rise of 5.11%, but this was up by 13.07% over a month. Three-month performance surged to 12.29% while six-month performance fell -17.82%. The stock lost -42.07% in the past year, while it has gained 15.42% so far this year. A look at the trailing 12-month EPS for MRVL yields -0.17 with Next year EPS estimates of 2.07. For the next quarter, that number is 0.47. This implies an EPS growth rate of -27.40% for this year and -2.73% for next year. EPS is expected to grow by 18.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -41.40%.

Float and Shares Shorts:

At present, 852.60 million MRVL shares are outstanding with a float of 848.19 million shares on hand for trading. On Oct 13, 2022, short shares totaled 17.97 million, which was 2.11% higher than short shares on Sep 14, 2022. In addition to Mr. Matthew J. Murphy as the firm’s Pres, CEO & Director, Ms. Jean X. Hu serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 85.70% of MRVL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.90% of MRVL, in contrast to 31.40% held by mutual funds. Shares owned by individuals account for 0.47%. As the largest shareholder in MRVL with 13.95% of the stake, Fidelity Management & Research Co holds 118,993,995 shares worth 118,993,995. A second-largest stockholder of MRVL, The Vanguard Group, Inc., holds 64,945,423 shares, controlling over 7.61% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MRVL, holding 31,456,258 shares or 3.69% stake. With a 3.15% stake in MRVL, the Fidelity Blue Chip Growth Fund is the largest stakeholder. A total of 26,906,119 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.04% of MRVL stock, is the second-largest Mutual Fund holder. It holds 25,943,566 shares valued at 960.95 million. Fidelity Select Port. – Semicondu holds 1.50% of the stake in MRVL, owning 12,795,677 shares worth 473.95 million.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MRVL since 30 analysts follow the stock currently. There are 26 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MRVL analysts setting a high price target of $125.00 and a low target of $41.00, the average target price over the next 12 months is $60.92. Based on these targets, MRVL could surge 192.4% to reach the target high and fall by -4.09% to reach the target low. Reaching the average price target will result in a growth of 42.5% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MRVL will report FY 2023 earnings on 03/03/2023. Analysts have provided yearly estimates in a range of $2.17 being high and $2.12 being low. For MRVL, this leads to a yearly average estimate of $2.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Marvell Technology Inc. surprised analysts by -$0.02 when it reported $0.57 EPS against a consensus estimate of $0.59. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.49 and the low estimate is $0.46. The average estimate for the next quarter is thus $0.46.


Dividends & Yield:

In terms of dividends, MRVL has a current ratio of $0.24, which is $0.24 over the trailing 12-months, while a dividend of $0.24 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and MRVL currently yields $0.56. In the past year, MRVL’s dividend yield has been $0.56, but when looking at the stock over the past five years, its yield has been $0.78. Accordingly, MRVL has a current buyback yield of $0.32. This was $0.32 for the TTM, and it was $1.08 for the past five years.

Summary of Insider Activity:

Insiders traded MRVL stock several times over the past three months with 4 Buys and 4 Sells. In these transactions, 9,454 shares were bought while 4,833 shares were sold. The number of buy transactions has increased to 124 while that of sell transactions has risen to 144 over the past year. The total number of shares bought during that period was 1,298,902 while 950,702 shares were sold.

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