Stock Buyback Plan Approved by Marvell Technology Group (NASDAQ:MRVL) Board of Directors

Marvell Technology Group (NASDAQ:MRVL) announced that its Board of Directors has approved a stock buyback plan, which authorizes the company to repurchase $1.00 billion in shares on Tuesday, October 16th. This repurchase authorization authorizes the semiconductor company to reacquire up to 7.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

MRVL has been the subject of several recent analyst reports. BidaskClub cut shares of Marvell Technology Group from a “hold” rating to a “sell” rating in a research note on Thursday. BMO Capital Markets upgraded shares of Marvell Technology Group from a “market perform” rating to an “outperform” rating and set a $24.00 target price for the company in a research report on Monday, October 15th. Rosenblatt Securities restated a “buy” rating and set a $27.00 target price on shares of Marvell Technology Group in a research report on Sunday, September 9th. Goldman Sachs Group set a $23.00 target price on shares of Marvell Technology Group and gave the stock a “buy” rating in a research report on Wednesday, October 17th. Finally, Zacks Investment Research downgraded shares of Marvell Technology Group from a “buy” rating to a “hold” rating in a report on Wednesday, August 1st. One analyst has rated the stock with a sell rating, four have given a hold rating and twenty-three have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $25.56.

Shares of NASDAQ:MRVL traded down $0.32 on Friday, reaching $16.39. 8,853,402 shares of the company’s stock were exchanged, compared to its average volume of 12,931,633. The stock has a market capitalization of $11.11 billion, a price-to-earnings ratio of 15.76, a price-to-earnings-growth ratio of 2.02 and a beta of 1.09. Marvell Technology Group has a fifty-two week low of $15.31 and a fifty-two week high of $25.18. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.76 and a current ratio of 2.54.

Marvell Technology Group (NASDAQ:MRVL) last issued its earnings results on Thursday, September 6th. The semiconductor company reported $0.28 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.29 by ($0.01). The business had revenue of $665.31 million for the quarter, compared to analyst estimates of $685.00 million. Marvell Technology Group had a return on equity of 10.70% and a net margin of 15.36%. The firm’s revenue for the quarter was up 10.1% on a year-over-year basis. During the same period last year, the company posted $0.30 earnings per share. Sell-side analysts expect that Marvell Technology Group will post 0.86 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 23rd. Stockholders of record on Tuesday, October 2nd were given a dividend of $0.06 per share. The ex-dividend date was Monday, October 1st. This represents a $0.24 annualized dividend and a dividend yield of 1.46%. Marvell Technology Group’s dividend payout ratio is currently 23.08%.

In other news, CEO Matthew J. Murphy sold 10,000 shares of the company’s stock in a transaction dated Tuesday, September 4th. The shares were sold at an average price of $20.64, for a total transaction of $206,400.00. Following the completion of the transaction, the chief executive officer now owns 1,755 shares in the company, valued at $36,223.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

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Marvell Technology Group Company Profile

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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