NVIDIA (NASDAQ:NVDA) Shares Down 2.5% Following Insider Selling

NVIDIA Co. (NASDAQ:NVDA)’s stock price fell 2.5% during trading on Friday after an insider sold shares in the company. The stock traded as low as $120.35 and last traded at $120.97. 95,940,035 shares changed hands during trading, a decline of 78% from the average session volume of 430,304,000 shares. The stock had previously closed at $124.04.

Specifically, Director Mark A. Stevens sold 165,100 shares of the company’s stock in a transaction that occurred on Tuesday, September 24th. The stock was sold at an average price of $121.27, for a total value of $20,021,677.00. Following the sale, the director now directly owns 8,420,117 shares in the company, valued at approximately $1,021,107,588.59. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Tench Coxe sold 1,000,000 shares of the company’s stock in a transaction that occurred on Thursday, September 19th. The shares were sold at an average price of $119.27, for a total value of $119,270,000.00. Following the completion of the sale, the director now owns 5,852,480 shares in the company, valued at $698,025,289.60. The disclosure for this sale can be found here.

Analyst Ratings Changes

Several research firms have recently weighed in on NVDA. The Goldman Sachs Group reiterated a “buy” rating and issued a $135.00 price objective on shares of NVIDIA in a research note on Monday, August 19th. Citigroup upped their price objective on NVIDIA from $126.00 to $150.00 and gave the company a “buy” rating in a research note on Wednesday, June 26th. UBS Group upped their price objective on NVIDIA from $120.00 to $150.00 and gave the company a “buy” rating in a research note on Monday, July 8th. Wells Fargo & Company upped their price objective on NVIDIA from $155.00 to $165.00 and gave the company an “overweight” rating in a research note on Thursday, August 29th. Finally, Jefferies Financial Group increased their price target on NVIDIA from $135.00 to $150.00 and gave the stock a “buy” rating in a research report on Monday, June 24th. Five research analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $142.10.

NVIDIA Trading Down 2.1 %

The company has a current ratio of 4.27, a quick ratio of 3.79 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $2.99 trillion, a P/E ratio of 70.99, a PEG ratio of 1.05 and a beta of 1.67. The business has a 50 day moving average price of $115.88 and a 200 day moving average price of $108.23.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings results on Wednesday, August 28th. The computer hardware maker reported $0.68 EPS for the quarter, beating analysts’ consensus estimates of $0.64 by $0.04. The company had revenue of $30.04 billion during the quarter, compared to analysts’ expectations of $28.74 billion. NVIDIA had a return on equity of 113.50% and a net margin of 55.04%. NVIDIA’s revenue was up 122.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.25 EPS. Analysts anticipate that NVIDIA Co. will post 2.65 EPS for the current year.

NVIDIA Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 3rd. Stockholders of record on Thursday, September 12th will be paid a dividend of $0.01 per share. The ex-dividend date of this dividend is Thursday, September 12th. This represents a $0.04 annualized dividend and a dividend yield of 0.03%. NVIDIA’s dividend payout ratio is currently 2.34%.

NVIDIA announced that its board has approved a stock repurchase plan on Wednesday, August 28th that authorizes the company to repurchase $50.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 1.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On NVIDIA

Hedge funds have recently added to or reduced their stakes in the business. FPC Investment Advisory Inc. bought a new position in NVIDIA during the 1st quarter worth $26,000. Koesten Hirschmann & Crabtree INC. bought a new position in NVIDIA in the first quarter valued at about $27,000. HBC Financial Services PLLC bought a new position in NVIDIA in the first quarter valued at about $30,000. Norwood Financial Corp acquired a new stake in shares of NVIDIA during the first quarter valued at about $45,000. Finally, Coston McIsaac & Partners boosted its stake in shares of NVIDIA by 231.3% during the first quarter. Coston McIsaac & Partners now owns 53 shares of the computer hardware maker’s stock valued at $47,000 after purchasing an additional 37 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.