NVIDIA (NASDAQ:NVDA) Shares Down 2.8% After Insider Selling

Key Points

• NVIDIA's shares dropped by 2.8% after insider selling by key executives, including Director Harvey C. Jones and CEO Jen Hsun Huang, who sold a total of 325,000 shares between September 17th and 19th.
• Despite the recent decline, several analysts have maintained positive outlooks on NVIDIA, with target prices ranging from $215 to $240 and an overall consensus rating of "Moderate Buy".
• NVIDIA reported revenue of $46.74 billion for the last quarter, exceeding estimates, with a year-over-year revenue increase of 55.6% and earnings per share of $1.05.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s stock price was down 2.8% on Tuesday following insider selling activity. The stock traded as low as $176.21 and last traded at $178.43. Approximately 190,604,124 shares were traded during mid-day trading, a decline of 19% from the average daily volume of 234,581,828 shares. The stock had previously closed at $183.61.

Specifically, Director Harvey C. Jones sold 250,000 shares of the company's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $176.21, for a total transaction of $44,052,500.00. Following the completion of the sale, the director owned 7,183,280 shares in the company, valued at $1,265,765,768.80. This represents a 3.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jen Hsun Huang sold 75,000 shares of the stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $176.42, for a total transaction of $13,231,500.00. Following the completion of the transaction, the chief executive officer owned 71,683,203 shares in the company, valued at approximately $12,646,350,673.26. This trade represents a 0.10% decrease in their position. The disclosure for this sale can be found here. In other NVIDIA news, CEO Jen Hsun Huang sold 75,000 shares of NVIDIA stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $170.30, for a total value of $12,772,500.00. Following the completion of the transaction, the chief executive officer owned 71,833,203 shares of the company's stock, valued at approximately $12,233,194,470.90. The trade was a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. KeyCorp reaffirmed an "overweight" rating and issued a $230.00 target price (up from $215.00) on shares of NVIDIA in a report on Thursday, August 28th. Jefferies Financial Group reissued a "buy" rating on shares of NVIDIA in a report on Friday, September 12th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $240.00 price objective on shares of NVIDIA in a research report on Thursday, August 28th. Rosenblatt Securities reiterated a "buy" rating and issued a $215.00 target price on shares of NVIDIA in a report on Tuesday. Finally, Stifel Nicolaus lifted their price target on shares of NVIDIA from $202.00 to $212.00 and gave the stock a "buy" rating in a research note on Monday, August 25th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $208.76.

NVIDIA Trading Down 2.8%

The company has a quick ratio of 3.60, a current ratio of 4.21 and a debt-to-equity ratio of 0.08. The business has a 50-day moving average of $176.12 and a two-hundred day moving average of $144.35. The firm has a market capitalization of $4.34 trillion, a price-to-earnings ratio of 50.83, a P/E/G ratio of 1.28 and a beta of 2.10.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 27th. The computer hardware maker reported $1.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.01 by $0.04. The firm had revenue of $46.74 billion during the quarter, compared to analysts' expectations of $45.65 billion. NVIDIA had a return on equity of 101.74% and a net margin of 52.41%.The company's revenue was up 55.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.68 EPS. NVIDIA has set its Q3 2026 guidance at EPS. Research analysts predict that NVIDIA Corporation will post 2.77 EPS for the current fiscal year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Shareholders of record on Thursday, September 11th will be paid a $0.01 dividend. The ex-dividend date is Thursday, September 11th. This represents a $0.04 annualized dividend and a yield of 0.0%. NVIDIA's dividend payout ratio (DPR) is 1.14%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Dakota Community Bank & Trust NA grew its stake in shares of NVIDIA by 25.3% during the 2nd quarter. Dakota Community Bank & Trust NA now owns 4,650 shares of the computer hardware maker's stock valued at $735,000 after acquiring an additional 940 shares during the period. Caldwell Trust Co bought a new stake in NVIDIA in the second quarter worth about $55,029,000. Canal Capital Management LLC boosted its holdings in NVIDIA by 5.2% during the 2nd quarter. Canal Capital Management LLC now owns 83,631 shares of the computer hardware maker's stock valued at $13,213,000 after acquiring an additional 4,157 shares during the period. Milestones Private Investment Advisors LLC acquired a new position in shares of NVIDIA in the 2nd quarter valued at $1,162,000. Finally, NWF Advisory Services Inc. lifted its holdings in shares of NVIDIA by 87.6% during the second quarter. NWF Advisory Services Inc. now owns 83,164 shares of the computer hardware maker's stock worth $13,139,000 after purchasing an additional 38,836 shares during the period. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Company Profile

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.