Matthew Murphy, CEO and Chairman at Marvell Technology (MRVL), recently bought 13,000 shares. The buy increased his stake by 6%, and came to a total cost of just over $1 million.
This marks the first insider buy since June, when a company director bought 1,923 shares at a cost of just over $100,000. Otherwise, there have been several insider sales, including two from the company CFO. Generally, insiders have been more likely to be sellers over the past two years.
Overall, Marvell insiders own 0.5% of shares.
The semiconductor producer is up 54% over the past year, far outperforming the overall market. That’s in spite of the fact that revenues dropped 5% over the past year and the company lost nearly $1 billion.
However, Marvell is on track to produce high-level chips in demand for AI projects. That should help reverse the company’s fortunes and continue to keep a floor under shares.
Action to take: Shares are in an uptrend and moving higher. Momentum investors may like shares here to play that trend. Marvell also pays a 0.3% dividend.
For traders, the January 2025 $92.50 calls, last trading for about $3.60, have a high amount of volume on them. The calls could see mid-double-digit returns from a further uptrend in Marvell shares into the start of next year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.