Healthy Upside Potential: Marvell Technology Inc. (MRVL)

Marvell Technology Inc. (NASDAQ: MRVL) stock jumped 7.59% on Thursday to $49.47 against a previous-day closing price of $45.98. With 37.9 million shares changed hands, the volume of the stock remained heavier than its average volume of 12.6 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $49.73 whereas the lowest price it dropped to was $46.70. The 52-week range on MRVL shows that it touched its highest point at $61.50 and its lowest point at $33.75 during that stretch. It currently has a 1-year price target of $56.15. With its current market cap of 41.83 billion, MRVL has annualized dividend of $0.24 while the current yield stands at 0.49%. Beta for the stock currently stands at 1.41.

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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 10.57%, but this was up by 29.91% over a month. Three-month performance surged to 12.82% while six-month performance rose 15.26%. The stock lost -5.59% in the past year, while it has gained 33.56% so far this year. A look at the trailing 12-month EPS for MRVL yields -0.19 with Next year EPS estimates of 2.30. For the next quarter, that number is 0.31. This implies an EPS growth rate of 63.70% for this year and 51.18% for next year. EPS is expected to grow by 17.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -17.40%.

Float and Shares Shorts:

At present, 854.10 million MRVL shares are outstanding with a float of 848.19 million shares on hand for trading. On Apr 27, 2023, short shares totaled 24.21 million, which was 2.82% higher than short shares on Mar 30, 2023. In addition to Mr. Matthew J. Murphy as the firm’s Pres, CEO & Director, Mr. Willem A. Meintjes serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 86.38% of MRVL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.65% of MRVL, in contrast to 30.13% held by mutual funds. Shares owned by individuals account for 0.53%. As the largest shareholder in MRVL with 13.93% of the stake, Fidelity Management & Research Co holds 119,323,343 shares worth 119,323,343. A second-largest stockholder of MRVL, The Vanguard Group, Inc., holds 67,105,260 shares, controlling over 7.83% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in MRVL, holding 42,009,812 shares or 4.90% stake. With a 3.22% stake in MRVL, the Fidelity Blue Chip Growth Fund is the largest stakeholder. A total of 27,566,832 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.10% of MRVL stock, is the second-largest Mutual Fund holder. It holds 26,519,666 shares valued at 1.05 billion. Fidelity Select Port. – Semicondu holds 1.55% of the stake in MRVL, owning 13,297,038 shares worth 524.97 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 27, 2023, MRVL reported revenue of $1.45B and operating income of $71.10M. The EBITDA in the recently reported quarter was $425.00M and diluted EPS was -$0.20.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MRVL since 0 analysts follow the stock currently. 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 $100.00 and a low target of $45.00, the average target price over the next 12 months is $60.11. Based on these targets, MRVL could surge 102.14% to reach the target high and fall by -9.04% to reach the target low. Reaching the average price target will result in a growth of 21.51% 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.

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 $0.49. In the past year, MRVL’s dividend yield has been $0.49, but when looking at the stock over the past five years, its yield has been $0.74. Accordingly, MRVL has a current buyback yield of $0.27. This was $0.27 for the TTM, and it was $0.74 for the past five years.

Summary of Insider Activity:

Insiders traded MRVL stock several times over the past three months with 42 Buys and 41 Sells. In these transactions, 993,378 shares were bought while 450,094 shares were sold. The number of buy transactions has increased to 146 while that of sell transactions has risen to 153 over the past year. The total number of shares bought during that period was 1,373,210 while 850,472 shares were sold.

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