Marvell Technology Group (MRVL) Board Declares Share Buyback Plan

Marvell Technology Group (NASDAQ:MRVL) declared that its Board of Directors has authorized a share buyback program, which authorizes the company to repurchase $1.00 billion in outstanding shares on Tuesday, October 16th. This repurchase authorization authorizes the semiconductor company to purchase up to 7.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

A number of brokerages recently weighed in on MRVL. BidaskClub downgraded shares of Marvell Technology Group from a “sell” rating to a “strong sell” rating in a report on Thursday, August 2nd. Cowen cut their price target on shares of Marvell Technology Group from $29.00 to $26.00 and set an “outperform” rating on the stock in a report on Monday, August 27th. ValuEngine raised shares of Marvell Technology Group from a “hold” rating to a “buy” rating in a report on Thursday, June 28th. B. Riley cut their price target on shares of Marvell Technology Group from $30.00 to $26.00 and set a “buy” rating on the stock in a report on Wednesday, October 10th. Finally, Deutsche Bank raised shares of Marvell Technology Group from a “hold” rating to a “buy” rating and set a $13.00 price target on the stock in a report on Tuesday, June 26th. Five investment analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus target price of $25.77.

NASDAQ MRVL opened at $18.09 on Friday. The stock has a market cap of $12.71 billion, a price-to-earnings ratio of 17.39, a price-to-earnings-growth ratio of 2.31 and a beta of 0.96. Marvell Technology Group has a 52 week low of $17.18 and a 52 week high of $25.18. The company has a current ratio of 2.54, a quick ratio of 1.76 and a debt-to-equity ratio of 0.25.

Marvell Technology Group (NASDAQ:MRVL) last released its quarterly earnings data on Thursday, September 6th. The semiconductor company reported $0.28 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.29 by ($0.01). The business had revenue of $665.31 million for the quarter, compared to analysts’ expectations of $685.00 million. Marvell Technology Group had a net margin of 15.36% and a return on equity of 10.70%. Marvell Technology Group’s revenue for the quarter was up 10.1% compared to the same quarter last year. During the same period last year, the company earned $0.30 earnings per share. On average, analysts anticipate that Marvell Technology Group will post 0.86 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 23rd. Shareholders of record on Tuesday, October 2nd will be issued a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 1.33%. The ex-dividend date of this dividend is Monday, October 1st. Marvell Technology Group’s dividend payout ratio (DPR) is presently 23.08%.

In other news, CEO Matthew J. Murphy sold 10,000 shares of the stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $20.64, for a total value of $206,400.00. Following the sale, the chief executive officer now directly owns 1,755 shares of the company’s stock, valued at $36,223.20. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.10% of the stock is owned by corporate insiders.

About Marvell Technology Group

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as HDD components, such as HDD preamps components; and develops software-enabled silicon solutions comprising serial advanced technology attachment port multipliers, bridges, serial attached SCSI, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses.

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