NVIDIA (NASDAQ:NVDA) Stock Price Down 89.8% After Insider Selling

Key Points

• NVIDIA's stock price has plummeted by 89.8% following significant insider selling by CEO Jen Hsun Huang, who sold a total of 225,000 shares over several transactions.
• Despite the recent drop, several analysts have positively rated NVIDIA, with upgrades and increased target prices, including a boost from DA Davidson to $210.00.
• NVIDIA reported a revenue of $46.74 billion for the latest quarter, significantly exceeding analysts' expectations, while its quarterly earnings per share (EPS) beat estimates by $0.04.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares were down 89.8% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $180.32 and last traded at $181.85. Approximately 192,022,403 shares changed hands during mid-day trading, a decline of 18% from the average daily volume of 233,170,234 shares. The stock had previously closed at $1,781.90.

Specifically, CEO Jen Hsun Huang sold 75,000 shares of the company's stock in a transaction that occurred on Monday, September 29th. The stock was sold at an average price of $182.34, for a total transaction of $13,675,500.00. Following the transaction, the chief executive officer owned 71,233,203 shares in the company, valued at approximately $12,988,662,235.02. This represents a 0.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jen Hsun Huang sold 75,000 shares of the company's stock in a transaction that occurred on Friday, September 26th. The stock was sold at an average price of $176.96, for a total value of $13,272,000.00. Following the transaction, the chief executive officer owned 71,308,203 shares in the company, valued at $12,618,699,602.88. This trade represents a 0.11% 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 the company's stock in a transaction that occurred on Wednesday, September 24th. The stock was sold at an average price of $177.60, for a total transaction of $13,320,000.00. Following the transaction, the chief executive officer owned 71,383,203 shares in the company, valued at approximately $12,677,656,852.80. This represents a 0.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analyst Ratings Changes

A number of research firms have weighed in on NVDA. DA Davidson upgraded NVIDIA from a "neutral" rating to a "buy" rating and upped their target price for the stock from $195.00 to $210.00 in a report on Thursday, September 11th. New Street Research boosted their price target on NVIDIA from $200.00 to $235.00 and gave the stock a "buy" rating in a research report on Friday, September 12th. Jefferies Financial Group reissued a "buy" rating and issued a $220.00 price target (up from $205.00) on shares of NVIDIA in a research report on Monday. Loop Capital boosted their price target on NVIDIA from $175.00 to $250.00 and gave the stock a "buy" rating in a research report on Wednesday, June 25th. Finally, Evercore ISI boosted their price target on NVIDIA from $214.00 to $225.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 23rd. Four analysts have rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, NVIDIA currently has a consensus rating of "Moderate Buy" and an average price target of $210.21.

NVIDIA Price Performance

The firm has a market capitalization of $4.42 trillion, a P/E ratio of 51.81, a PEG ratio of 1.29 and a beta of 2.10. The company has a debt-to-equity ratio of 0.08, a quick ratio of 3.60 and a current ratio of 4.21. The firm has a 50-day moving average of $176.60 and a 200-day moving average of $146.20.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, August 27th. The computer hardware maker reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.04. The business had revenue of $46.74 billion for 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 firm's quarterly revenue was up 55.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.68 EPS. NVIDIA has set its Q3 2026 guidance at EPS. As a group, analysts predict that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Stockholders of record on Thursday, September 11th will be issued a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. The ex-dividend date of this dividend is Thursday, September 11th. NVIDIA's dividend payout ratio is presently 1.14%.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently modified their holdings of the company. Morton Brown Family Wealth LLC grew its holdings in NVIDIA by 1.5% in the second quarter. Morton Brown Family Wealth LLC now owns 3,928 shares of the computer hardware maker's stock worth $621,000 after purchasing an additional 58 shares during the period. Roof Eidam Maycock Peralta LLC boosted its position in shares of NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 20,903 shares of the computer hardware maker's stock worth $3,302,000 after purchasing an additional 58 shares in the last quarter. Alpha Wealth Funds LLC boosted its position in shares of NVIDIA by 1.3% in the 2nd quarter. Alpha Wealth Funds LLC now owns 4,634 shares of the computer hardware maker's stock worth $732,000 after purchasing an additional 59 shares in the last quarter. Copia Wealth Management boosted its position in shares of NVIDIA by 14.7% in the 2nd quarter. Copia Wealth Management now owns 468 shares of the computer hardware maker's stock worth $74,000 after purchasing an additional 60 shares in the last quarter. Finally, BKM Wealth Management LLC boosted its position in shares of NVIDIA by 1.1% in the 2nd quarter. BKM Wealth Management LLC now owns 5,745 shares of the computer hardware maker's stock worth $908,000 after purchasing an additional 60 shares in the last quarter. 65.27% of the stock is owned by institutional investors.

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.

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