NVIDIA (NASDAQ:NVDA) Trading Down 1.5% on Insider Selling
by Teresa Graham · The Cerbat GemNVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price traded down 1.5% on Friday after an insider sold shares in the company. The company traded as low as $211.13 and last traded at $211.14. 282,649,030 shares were traded during trading, an increase of 65% from the average session volume of 171,537,859 shares. The stock had previously closed at $214.25.
Specifically, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the sale, the director directly owned 14,163 shares in the company, valued at $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Wall Street Analyst Weigh In
Several equities research analysts recently weighed in on the stock. Piper Sandler reaffirmed an “overweight” rating on shares of NVIDIA in a report on Thursday, February 26th. DA Davidson lifted their target price on NVIDIA from $250.00 to $300.00 and gave the stock a “buy” rating in a report on Monday, May 18th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $315.00 target price (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. New Street Research lowered their target price on NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. Finally, Stifel Nicolaus set a $282.00 target price on NVIDIA and gave the stock a “buy” rating in a report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $305.38.
Read Our Latest Stock Report on NVDA
Key Stories Impacting NVIDIA
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: Investors are looking ahead to next week’s Computex conference, which could provide a fresh catalyst for NVIDIA’s AI-chip leadership and keep sentiment constructive around the stock. Why Nvidia stock is up around 1% today
- Positive Sentiment: Analysts and commentators continue to point to NVIDIA as the main winner from the AI server boom, with strong demand for its chips, Blackwell products, and broader data-center ecosystem. Jim Cramer names Nvidia as the winner behind Dell rally
- Positive Sentiment: News that NVIDIA is investing heavily in photonics, with billions directed toward next-generation data-center connectivity, suggests the company is trying to extend its AI leadership beyond GPUs into the next bottlenecks in AI infrastructure. Nvidia is investing billions into this emerging technology that could change the AI industry
- Positive Sentiment: Truist raised its price target on NVDA to $307 and kept a Buy rating, reinforcing the view that the company’s strong quarterly results and growth outlook remain intact. NVIDIA Corporation (NVDA) Stock Update: Truist Raises Target to $307 Following Strong Quarter
- Neutral Sentiment: CEO Jensen Huang’s reported advisory-board role at Tsinghua University keeps NVIDIA visible in China-related tech circles, but it is more of a corporate-profile headline than a direct earnings driver. Nvidia chief Jensen Huang to join board of Beijing’s Tsinghua University, FT reports
- Negative Sentiment: Director John Dabiri sold 625 shares under a pre-arranged 10b5-1 trading plan, which is routine but can still add to investor caution when the stock is already expensive and volatile. SEC filing for John Dabiri transaction
- Negative Sentiment: Several articles highlight concerns that NVIDIA’s valuation is stretched and that the stock may be struggling to extend gains after a huge AI-driven run, which can weigh on near-term trading. Nvidia And The Reality Of Paying For Perfection
NVIDIA Stock Down 1.5%
The business’s 50 day simple moving average is $198.67 and its 200-day simple moving average is $189.55. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The company has a market cap of $5.11 trillion, a price-to-earnings ratio of 32.33, a price-to-earnings-growth ratio of 0.51 and a beta of 2.25.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $81.62 billion during the quarter, compared to analysts’ expectations of $78.42 billion. During the same quarter last year, the firm earned $0.81 earnings per share. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. Sell-side analysts expect that NVIDIA Corporation will post 8.04 earnings per share for the current year.
NVIDIA Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. NVIDIA’s dividend payout ratio is presently 0.61%.
NVIDIA announced that its board has initiated a share buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.
Institutional Trading of NVIDIA
A number of institutional investors have recently added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA in the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. bought a new position in shares of NVIDIA in the first quarter worth about $27,000. Longfellow Investment Management Co. LLC boosted its position in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after acquiring an additional 67 shares during the period. Phillip James Consulting Co. bought a new position in NVIDIA during the first quarter worth $40,000. Finally, Inspire Investing LLC acquired a new position in NVIDIA during the 4th quarter valued at $44,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.
NVIDIA Company Profile
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.