Unusual Call Option Trade in Marvell Technology Worth $845.91K

On May 24, 2023 at 09:59:02 ET an unusually large $845.91K block of Call contracts in Marvell Technology (MRVL) was sold, with a strike price of $42.00 / share, expiring in 2 day(s) (on May 26, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 6.08 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in MRVL options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 1598 funds or institutions reporting positions in Marvell Technology. This is an increase of 9 owner(s) or 0.57% in the last quarter. Average portfolio weight of all funds dedicated to MRVL is 0.48%, an increase of 6.26%. Total shares owned by institutions increased in the last three months by 5.43% to 840,534K shares. The put/call ratio of MRVL is 1.04, indicating a bearish outlook.

Analyst Price Forecast Suggests 22.94% Upside

As of May 11, 2023, the average one-year price target for Marvell Technology is 57.28. The forecasts range from a low of 45.45 to a high of $105.00. The average price target represents an increase of 22.94% from its latest reported closing price of 46.59.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Marvell Technology is 6,174MM, an increase of 4.30%. The projected annual non-GAAP EPS is 2.11, a decrease of 0.38% from the prior forecast.

What are Other Shareholders Doing?

Price T Rowe Associates holds 42,010K shares representing 4.89% ownership of the company. In it’s prior filing, the firm reported owning 18,789K shares, representing an increase of 55.27%. The firm increased its portfolio allocation in MRVL by 143.23% over the last quarter.

Ofi Invest Asset Management holds 31,209K shares representing 3.63% ownership of the company.

FBGRX – Fidelity Blue Chip Growth Fund holds 27,231K shares representing 3.17% ownership of the company. In it’s prior filing, the firm reported owning 26,763K shares, representing an increase of 1.72%. The firm increased its portfolio allocation in MRVL by 3.85% over the last quarter.

T. Rowe Price Investment Management holds 26,751K shares representing 3.11% ownership of the company. In it’s prior filing, the firm reported owning 25,272K shares, representing an increase of 5.53%. The firm increased its portfolio allocation in MRVL by 15.62% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 25,910K shares representing 3.02% ownership of the company. In it’s prior filing, the firm reported owning 25,327K shares, representing an increase of 2.25%. The firm decreased its portfolio allocation in MRVL by 18.45% over the last quarter.

Marvell Technology Declares $0.06 Dividend

On March 15, 2023 the company declared a regular quarterly dividend of $0.06 per share ($0.24 annualized). Shareholders of record as of April 7, 2023 received the payment on April 26, 2023. Previously, the company paid $0.06 per share.

At the current share price of $46.59 / share, the stock’s dividend yield is 0.52%.

Looking back five years and taking a sample every week, the average dividend yield has been 0.75%, the lowest has been 0.26%, and the highest has been 1.67%. The standard deviation of yields is 0.34 (n=236).

The current dividend yield is 0.69 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is -1.26. 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

Key filings for this company:

This article originally appeared on Fintel

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