NVE (NASDAQ:NVEC) Stock Price Passes Above Two Hundred Day Moving Average - What's Next?

Key Points

• NVE crossed above its 200-day moving average of $67.79, trading as high as $83.99 and last at $81.17 on volume of 42,634 shares, signaling a technical breakout.
• The company pays a $1.00 quarterly dividend (annualized $4.00) for a 4.9% yield, but the dividend payout ratio is a high 136.99%, raising questions about sustainability.
• Analysts have a consensus Hold rating (Weiss Ratings reaffirmed), while NVE reports strong profitability (net margin 54.6%, ROE 23.5%), a market cap of $392.9M and 65.95% institutional ownership amid recent insider selling.

NVE Corporation (NASDAQ:NVEC - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $67.79 and traded as high as $83.99. NVE shares last traded at $81.17, with a volume of 42,634 shares traded.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of NVE in a report on Friday, March 27th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has a consensus rating of "Hold".

NVE Stock Performance

The firm's 50-day simple moving average is $69.54 and its 200 day simple moving average is $67.79. The company has a market cap of $392.86 million, a P/E ratio of 27.80 and a beta of 1.26.

NVE (NASDAQ:NVEC - Get Free Report) last issued its earnings results on Wednesday, January 21st. The semiconductor company reported $0.70 EPS for the quarter. NVE had a net margin of 54.59% and a return on equity of 23.47%. The company had revenue of $6.22 million during the quarter.

NVE Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Monday, February 2nd were given a $1.00 dividend. The ex-dividend date was Monday, February 2nd. This represents a $4.00 dividend on an annualized basis and a dividend yield of 4.9%. NVE's dividend payout ratio is currently 136.99%.

Insider Activity at NVE

In related news, CEO Daniel A. Baker sold 1,155 shares of the company's stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $74.04, for a total value of $85,516.20. Following the completion of the sale, the chief executive officer owned 60,031 shares in the company, valued at $4,444,695.24. This represents a 1.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.90% of the stock is currently owned by corporate insiders.

Institutional Trading of NVE

Large investors have recently made changes to their positions in the company. Handelsbanken Fonder AB increased its position in shares of NVE by 2,103.7% in the 3rd quarter. Handelsbanken Fonder AB now owns 63,027 shares of the semiconductor company's stock valued at $4,114,000 after buying an additional 60,167 shares in the last quarter. SG Americas Securities LLC bought a new stake in shares of NVE in the 3rd quarter valued at $143,000. Cornerstone Planning Group LLC bought a new stake in shares of NVE in the 3rd quarter valued at $36,000. Isthmus Partners LLC increased its position in shares of NVE by 16.4% in the 3rd quarter. Isthmus Partners LLC now owns 50,998 shares of the semiconductor company's stock valued at $3,329,000 after buying an additional 7,186 shares in the last quarter. Finally, Jane Street Group LLC bought a new stake in shares of NVE in the 1st quarter valued at $351,000. Institutional investors own 65.95% of the company's stock.

NVE Company Profile

NVE Corporation NASDAQ: NVEC is a technology company specializing in the development, manufacturing, and marketing of spintronic products. The company's core expertise lies in magnetoresistive sensing and magnetic-field-based digital isolation, leveraging patented spin-valve and tunneling magnetoresistance technologies to deliver high-performance, low-power solutions.

NVE's product portfolio includes magnetic sensors for current, position, and angle sensing applications, as well as micro-isolators and digital isolators that provide galvanic isolation in industrial, automotive, medical, instrumentation, and consumer electronics systems.

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