Daniel Durn, a director at Marvell Technology (MRVL), recently bought 1,425 shares. The buy increased his stake by a massive 286%, and came to a total cost of $100,049.
This is the first insider buy at Marvell since September 2022, when a company director bought 6,781 shares at a cost of just over $314,000. Otherwise, company executives and directors alike have been heavy and steady sellers of shares over the past two years.
Overall, Marvell insiders own 0.5% of shares.
The data infrastructure semiconductor manufacturer is up 11% over the past year.
As with many other chip companies right now, Marvell is losing money. Revenues also dropped 12% over the past year.
However, Marvell is positioned well for future growth in data centers which will require specialized chips for that purpose.
The decline in revenues has pushed Marvell’s valuation to about 22 times earnings right now.
Action to take: Investors may want to consider a starting position here, and add to it on pullbacks. Trends for data center and other digital infrastructure growth bode well for Marvell over the next few years.
At current prices, Marvell also pays a 0.4% dividend.
For traders, the September $75 calls, last trading for about $3.75, could see mid-double-digit returns on a summer rally over the coming weeks.
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.