Why Institutional Investors Love Marvell Technology, Inc. (NASDAQ: MRVL) – 86% Ownership Insights!

Key Insights

• Institutional investors hold a major stake in Marvell Technology, affecting its share price significantly.
• The top 15 shareholders together control 51% of the company’s shares.
• Recent insider sales have caught the market’s attention.

Want to understand who really influences Marvell Technology, Inc. (NASDAQ:MRVL)? Look at the ownership structure. Institutions own a whopping 86% of the shares. This means they are heavily invested in the company’s future and will either profit or lose substantially with any changes in stock value.

Because these institutional investors have large amounts of cash, their investment moves can greatly impact the market. When they invest in a company, it often signals a strong belief in its potential.

Check out the visual below for a breakdown of ownership at Marvell Technology.

What Does The Institutional Ownership Reveal About Marvell Technology?

Institutional investors often benchmark their gains against common indices. So, these investors typically look for larger companies included in these benchmarks.

The presence of institutional investors in Marvell Technology suggests it has a level of credibility in the market. However, it’s essential to remember that they can make mistakes too. When many institutions own a stock, it creates a ‘crowded trade’ risk. If things go south, multiple investors might rush to sell, leading to a quick drop in stock price. This risk is even higher for companies without a solid growth history, like Marvell Technology, as shown in the earnings and revenue chart below.

With institutions owning over half the shares, the board likely pays attention to their preferences. Notably, hedge funds don’t hold a significant stake in Marvell Technology. The largest shareholder is FMR LLC, with a 15% share. The second- and third-largest shareholders own 8.6% and 7.1%, respectively.

The combined ownership of the top 15 shareholders is 51%, meaning no single investor has full control.

While examining institutional ownership is valuable, it’s wise to combine this with analyst recommendations. There’s a wealth of analysts tracking Marvell Technology, so checking their forecasts can provide more insights.

Insider Ownership Of Marvell Technology

Generally, insiders are considered to be board members and top management, who should act in the shareholders’ interests. Insider ownership is usually a positive sign. However, it can also complicate accountability since these insiders may influence decision-making.

Data shows insiders own less than 1% of Marvell Technology shares directly. Given the company’s size, that’s expected, but it’s notable that they have a total of US$344 million worth of shares. It’s interesting to watch for any buying or selling activity from these insiders.

General Public Ownership

Retail investors hold about 14% of Marvell Technology’s shares. While this is a significant portion, it may not be enough to sway decision-making if large shareholders disagree.

Next Steps:

Understanding a company’s ownership structure is intriguing, but it’s just one piece of the puzzle. Consider also looking for any warning signs, as we’ve identified 1 warning sign for Marvell Technology to watch out for.

If you’re interested in Marvell’s growth potential, check out the free report detailing analyst forecasts for its future.

Note: The figures mentioned here are calculated from the past twelve months and may differ from annual report figures.

Have feedback on this article? Concerns about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives or financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.