NVIDIA (NASDAQ:NVDA) Director Sells 885,000 Shares

Key Points

• Director Mark Stevens sold 885,000 NVIDIA shares on June 18 at an average price of $210.17, totaling about $186 million. After the sale, he still held more than 5.2 million shares, cutting his stake by 14.53%.
• NVIDIA shares fell 4.1% to around $200 in mid-day trading, even as the company remains highly valued with a market cap near $4.84 trillion. The stock is trading below its 50-day average but above its 200-day average.
• Fundamentals remain strong: NVIDIA recently beat quarterly EPS and revenue expectations, raised its dividend from $0.01 to $0.25 per quarter, and authorized an $80 billion buyback program. Analysts largely remain bullish, with a consensus rating of “Buy” and an average price target of $305.67.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) Director Mark Stevens sold 885,000 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares of the company's stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

NVIDIA Trading Down 4.1%

NASDAQ:NVDA traded down $8.65 during mid-day trading on Tuesday, hitting $200.00. 151,385,712 shares of the company's stock were exchanged, compared to its average volume of 170,669,813. NVIDIA Corporation has a fifty-two week low of $145.50 and a fifty-two week high of $236.54. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $4.84 trillion, a P/E ratio of 30.63, a PEG ratio of 0.47 and a beta of 2.22. The company has a 50 day simple moving average of $210.40 and a 200-day simple moving average of $192.66.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company's revenue was up 85.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.81 EPS. As a group, research analysts expect that NVIDIA Corporation will post 8.65 earnings per share for the current year.

NVIDIA Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 annualized dividend and a yield of 0.5%. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio is 15.31%.

NVIDIA declared that its Board of Directors has approved a stock buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI ecosystem with the launch of the BioNeMo Agent Toolkit for life sciences, aimed at helping researchers run AI-driven workflows in biology, chemistry, genomics and drug discovery.
• Positive Sentiment: New partnership headlines reinforced demand for NVIDIA’s hardware, including a Fervo Energy/PNNL geothermal digital twin project and multiple collaborations built on NVIDIA AI infrastructure.
• Positive Sentiment: Several reports highlighted continued strength in NVIDIA’s core AI business, pointing to benchmark wins for the GB300 platform, strong memory demand, and ongoing adoption of its Blackwell/Vera Rubin systems.
• Neutral Sentiment: Analyst and commentary pieces continued to debate NVIDIA’s valuation, with some saying the stock still looks attractive relative to its growth while others argue the market is rotating toward memory chips, infrastructure, and other AI beneficiaries.
• Negative Sentiment: The main near-term drag is a sector-wide semiconductor selloff, with NVIDIA falling alongside peers like AMD and Intel as investors reduced exposure to high-multiple chip names.
• Negative Sentiment: Reuters reported that music company Jamendo has sued NVIDIA over alleged AI training misuse, adding a legal overhang that could create headline risk for the stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of NVDA. Lifetime Wealth Management P.C. acquired a new position in NVIDIA during the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA in the first quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC increased its holdings in shares of NVIDIA by 47.9% during 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 in the last quarter. Phillip James Consulting Co. bought a new stake in shares of NVIDIA during the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC acquired a new position in shares of NVIDIA during the second quarter worth approximately $40,000. Institutional investors and hedge funds own 65.27% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on NVDA. Itau BBA Securities restated a "market perform" rating on shares of NVIDIA in a research report on Thursday, February 26th. Citic Securities upped their target price on NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 22nd. Tigress Financial reissued a "strong-buy" rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a research report on Wednesday, May 27th. Needham & Company LLC restated a "buy" rating and set a $270.00 price target on shares of NVIDIA in a report on Tuesday, June 2nd. Finally, HSBC restated a "buy" rating and issued a $325.00 price target (up from $295.00) on shares of NVIDIA in a research report on Tuesday, May 19th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $305.67.

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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