NVIDIA (NASDAQ:NVDA) Director Sells 585,000 Shares

Key Points

• NVIDIA director Mark Stevens sold 585,000 shares at an average price of $220.29, generating approximately $128.9 million. He retained 4.62 million shares, while his ownership declined 11.23%.
• NVIDIA reported quarterly earnings of $2.22 per share and revenue of $96.22 billion, exceeding analyst expectations; revenue increased 105.9% year over year.
• The company declared a quarterly dividend of $0.25 per share and authorized an $80 billion share-repurchase program. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $324.23.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) Director Mark Stevens sold 585,000 shares of the firm's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $220.29, for a total value of $128,869,650.00. Following the completion of the sale, the director directly owned 4,622,271 shares in the company, valued at $1,018,240,078.59. This trade represents a 11.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

NVIDIA Price Performance

NASDAQ:NVDA traded up $6.97 on Wednesday, hitting $224.41. The company had a trading volume of 156,553,789 shares, compared to its average volume of 159,202,641. NVIDIA Corporation has a 52 week low of $164.07 and a 52 week high of $236.54. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $5.41 trillion, a price-to-earnings ratio of 28.37, a PEG ratio of 1.73 and a beta of 2.22. The firm has a 50 day moving average of $208.68 and a two-hundred day moving average of $201.27.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business's quarterly revenue was up 105.9% compared to the same quarter last year. During the same period in the previous year, the business posted $1.05 earnings per share. On average, research analysts anticipate that NVIDIA Corporation will post 9.1 earnings per share for the current year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA's dividend payout ratio is currently 12.64%.

NVIDIA declared that its Board of Directors has authorized a share repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

NVDA has been the topic of several recent research reports. KGI Securities increased their price target on NVIDIA from $335.00 to $345.00 in a report on Thursday, August 27th. Rosenblatt Securities set a $390.00 target price on NVIDIA and gave the stock a "buy" rating in a report on Thursday, August 27th. New Street Research decreased their price target on shares of NVIDIA from $343.00 to $340.00 in a research note on Thursday, May 21st. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $300.00 price objective (up from $285.00) on shares of NVIDIA in a research note on Thursday, August 27th. Finally, Bank of America reiterated a "buy" rating and set a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $324.23.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Reported Hugging Face acquisition talks: NVIDIA is reportedly in advanced discussions to acquire AI platform Hugging Face for approximately $12.9 billion to $14 billion. The deal could strengthen NVIDIA’s software, open-model and developer ecosystem, although it remains unconfirmed. Why Nvidia's $14 Billion Hugging Face Deal Would Make Total Sense
• Positive Sentiment: AI spending remains strong: Dell’s guidance beat provided fresh evidence that data-center customers continue to invest heavily in AI infrastructure, supporting demand for NVIDIA’s accelerators and networking products. Why is Nvidia stock up over 4% today?
• Positive Sentiment: Inference and networking expansion: NVIDIA and Equinix expanded their partnership through the Equinix Inference Exchange, targeting distributed enterprise AI inference. NVIDIA also participated in iPronics’ $125 million funding round for programmable optical networking designed to connect large AI clusters. NVIDIA and Equinix Deepen Their AI Inference Partnership
• Positive Sentiment: Strategic positioning is drawing bullish analyst commentary: Analysts cited NVIDIA’s double-beat quarter, more than doubling revenue, strong forward guidance and expected Vera Rubin demand. JPMorgan reaffirmed its Buy rating and $320 price target. NVIDIA Buy Rating Reaffirmed
• Neutral Sentiment: MediaTek investment broadens NVIDIA’s moat: NVIDIA’s $3.5 billion investment in MediaTek is intended to integrate NVLink Fusion with custom AI chips, PCs and automotive platforms. The move may defend NVIDIA against bespoke silicon, but its decade-long roadmap highlights intensifying competition. Qualcomm rival MediaTek jumps after Nvidia AI chip deal
• Negative Sentiment: Risks are building around valuation and deal structure: A proposed $35 billion Anthropic computing commitment involving NVIDIA-backed Lambda has renewed concerns about circular financing within the AI ecosystem. Potential U.S. semiconductor tariffs and competition from AMD and custom AI chips could also pressure margins and multiples. Anthropic signs $35 billion cloud deal with Nvidia-backed Lambda

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. purchased a new stake in NVIDIA during the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA in the first quarter worth about $27,000. Montgomery Financial Services LLC purchased a new position in shares of NVIDIA in the second quarter worth about $28,000. Longfellow Investment Management Co. LLC raised 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 purchasing an additional 67 shares during the period. Finally, Langley Wealth Management LLC purchased a new stake in shares of NVIDIA during the 2nd quarter valued at approximately $34,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

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.

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