Unusual Call Option Trade in Marvell Technology Group Worth $333.79K

On February 13, 2023 at 12:52:21 (ET) an unusually large $333.79K block of Call contracts in Marvell Technology Group (MRVL) was bought, with a strike price of $46.00 / share, expiring in 11 days (on February 24, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.81 sigmas above the mean, placing it in the 96.69 percentile of all recent large trades made in MRVL options.

Analyst Price Forecast Suggests 41.99% Upside

As of February 12, 2023, the average one-year price target for Marvell Technology Group is $63.26. The forecasts range from a low of $41.41 to a high of $131.25. The average price target represents an increase of 41.99% from its latest reported closing price of $44.55.

The projected annual revenue for Marvell Technology Group is $6,165MM, an increase of 5.49%. The projected annual EPS is $2.12.

What is the Fund Sentiment?

There are 1585 funds or institutions reporting positions in Marvell Technology Group. This is a decrease of 63 owner(s) or 3.82% in the last quarter. Average portfolio weight of all funds dedicated to MRVL is 0.46%, an increase of 0.43%. Total shares owned by institutions increased in the last three months by 1.29% to 796,544K shares. The put/call ratio of MRVL is 0.91, indicating a bullish outlook.

What are large shareholders doing?

FBGRX – Fidelity Blue Chip Growth Fund holds 26,763K shares representing 3.14% ownership of the company. In it’s prior filing, the firm reported owning 25,696K shares, representing an increase of 3.98%. The firm decreased its portfolio allocation in MRVL by 16.22% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 25,327K shares representing 2.97% ownership of the company. In it’s prior filing, the firm reported owning 25,054K shares, representing an increase of 1.08%. The firm increased its portfolio allocation in MRVL by 3.87% over the last quarter.

T. Rowe Price Investment Management holds 23,668K shares representing 2.77% ownership of the company.

Wellington Management Group Llp holds 20,580K shares representing 2.41% ownership of the company. In it’s prior filing, the firm reported owning 19,432K shares, representing an increase of 5.58%. The firm increased its portfolio allocation in MRVL by 10.42% over the last quarter.

Bank Of America holds 19,777K shares representing 2.32% ownership of the company. In it’s prior filing, the firm reported owning 21,738K shares, representing a decrease of 9.91%. The firm decreased its portfolio allocation in MRVL by 80.69% over the last quarter.

Marvell Technology Group Declares $0.06 Dividend

On December 13, 2022 the company declared a regular quarterly dividend of $0.06 per share ($0.24 annualized). Shareholders of record as of January 5, 2023 received the payment on January 25, 2023. Previously, the company paid $0.06 per share.

At the current share price of $44.55 / share, the stock’s dividend yield is 0.54%. Looking back five years and taking a sample every week, the average dividend yield has been 0.78%, the lowest has been 0.26%, and the highest has been 1.67%. The standard deviation of yields is 0.35 (n=236).

The current dividend yield is 0.70 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is -1.44. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

Marvell Technology Background Information
(This description is provided by the company.)

Marvell Technology, Inc. develops and produces semiconductors and related technology. The Company offers security and networking platform, secure data processing, networking, and storage solutions. Marvell Technology serves customers worldwide

This article originally appeared on Fintel

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