NVIDIA Experiences 1.6% Decline Following Insider Sales

NVIDIA Corporation (NASDAQ:NVDA) saw its share price fall by 1.6% during trading on Monday. This drop was attributed to recent insider sales of the company's stock. The shares hit a low of $130.42 before ending the day at $132.05. In total, about 82,063,847 shares changed hands, which is a significant decline of 79% compared to the average daily trading volume of 384,238,000 shares. The stock had previously closed at $134.25.

On December 13th, insider Donald F. Robertson, Jr. sold 4,500 shares in a transaction at an average price of $135.28, amounting to a total of $608,760. Following this sale, Robertson now owns 480,899 shares of NVIDIA, currently valued at approximately $65.06 million. This transaction reflects a reduction of 0.93% in his ownership.

Additionally, CFO Colette Kress sold 66,670 shares on the same day, receiving an average price of $135.40 for a total of $9,027,118. Following this transaction, Kress owns 3,351,572 shares of the company, which amounts to about $453.80 million, marking a 1.95% decrease in her holdings. Details of these sales were disclosed in filings with the Securities and Exchange Commission.

Recent Analyst Ratings

Several analysts have recently provided updates regarding NVIDIA. The Goldman Sachs Group increased their price target for NVIDIA from $150.00 to $165.00, maintaining a “buy” rating in a report released on November 21st. Similarly, Piper Sandler raised their price target from $140.00 to $175.00, also giving it an “overweight” rating. Evercore ISI increased its price target from $189.00 to $190.00, indicating an “outperform” rating.

Cantor Fitzgerald reaffirmed their “overweight” rating with a target price set at $175.00, while DA Davidson adjusted their price objective for NVIDIA from $90.00 to $135.00, labeling it as a “neutral” investment. Overall, four analysts recommend holding the stock, while thirty-nine suggest buying it, and one gives a strong buy rating. The consensus rating is currently classified as “Moderate Buy” with an average target price of $164.15.

NVIDIA's Market Position

NVIDIA boasts a market capitalization of $3.23 trillion, with a price-to-earnings ratio of 51.95, a PEG ratio of 2.43, and a beta value of 1.63. The company maintains a debt-to-equity ratio of 0.13, a current ratio of 4.10, and a quick ratio of 3.64. As for its stock price trends, the 50-day moving average sits at $139.84, while the 200-day moving average is at $126.92.

The company reported its quarterly earnings on November 20th, indicating earnings per share (EPS) of $0.81, which surpassed analysts’ expectations of $0.69 by $0.12. It achieved revenue of $35.08 billion, defeating projections of $33.15 billion, representing a remarkable 93.6% increase from the same quarter of the previous year. Last year, during the same period, its EPS was $0.38. Analysts predict that NVIDIA will achieve an EPS of 2.78 for the current fiscal year.

Dividend Announcement

NVIDIA recently announced a quarterly dividend, set for distribution on December 27th. Shareholders recorded as of December 5th will receive a $0.01 dividend, leading to an annual dividend of $0.04, yielding a rate of 0.03%. The ex-dividend date was also noted as December 5th. The company's payout ratio is currently at 1.57%.

Additionally, the NVIDIA Board of Directors revealed a stock repurchase program on August 28th, authorizing the buyback of up to $50.00 billion of its shares. This program enables the repurchase of about 1.6% of outstanding shares, indicating management’s belief that the company's shares are currently undervalued.

Institutional Holdings

Recent updates show several hedge funds adjusting their holdings in NVIDIA. For instance, Lantz Financial LLC increased its stake by 833.1% during the second quarter, now owning 41,188 shares valued at approximately $5.09 million after purchasing an additional 36,774 shares. CX Institutional raised its holdings by 936.9%, now holding 150,085 shares valued at around $18.54 million after acquiring 135,610 shares in the last quarter. Cedar Mountain Advisors LLC also increased ownership by 865.8%, now holding 4,182 shares worth $517,000 after a purchase of 3,749 shares.

Furthermore, Bourgeon Capital Management LLC grew its NVIDIA holdings by 1,018.4%, now owning 36,795 shares valued at $4.55 million after an additional 33,505 shares were acquired. WBH Advisory Inc. expanded its holdings by 887.1%, owning 9,585 shares valued at approximately $1.18 million after purchasing 8,614 additional shares. Currently, institutional investors and hedge funds control 65.27% of NVIDIA stock.

Company Overview

NVIDIA Corporation specializes in providing graphics and compute solutions, along with networking technologies. Their offerings include GeForce GPUs for gaming and personal computers, the GeForce NOW streaming service, and a range of enterprise solutions such as virtual GPU software, automotive platforms, and software for building metaverse applications.

NVIDIA, Stocks, Trading