NVIDIA (NASDAQ:NVDA) Shares Down 1.6% on Insider Selling

Key Points

• NVIDIA shares fell 1.6% after CEO Jen Hsun Huang sold 75,000 shares, resulting in a 0.10% decrease in his ownership while still holding 73.7 million shares valued at approximately $13.2 billion.
• Multiple research analysts have varied ratings for NVIDIA, with HSBC downgrading the stock to a "hold" with a target of $120, while Loop Capital raised its target to $250 and maintained a "buy" rating.
• NVIDIA reported $44.06 billion in revenue for the latest quarter, exceeding expectations, despite earnings per share falling short of estimates by $0.06.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares traded down 1.6% during trading on Friday following insider selling activity. The company traded as low as $170.89 and last traded at $174.95. 83,017,890 shares were traded during mid-day trading, a decline of 67% from the average session volume of 247,915,766 shares. The stock had previously closed at $177.87.

Specifically, CEO Jen Hsun Huang sold 75,000 shares of the stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $178.74, for a total value of $13,405,500.00. Following the completion of the transaction, the chief executive officer directly owned 73,748,225 shares of the company's stock, valued at $13,181,757,736.50. This represents a 0.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Jen Hsun Huang sold 75,000 shares of the stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $175.22, for a total value of $13,141,500.00. Following the completion of the transaction, the chief executive officer directly owned 73,898,225 shares of the company's stock, valued at $12,948,446,984.50. This trade represents a 0.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, CEO Jen Hsun Huang sold 75,000 shares of the stock in a transaction that occurred on Friday, July 25th. The stock was sold at an average price of $173.88, for a total value of $13,041,000.00. Following the completion of the transaction, the chief executive officer directly owned 73,973,225 shares of the company's stock, valued at $12,862,464,363. This represents a 0.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Mizuho set a $192.00 price objective on NVIDIA and gave the stock an "outperform" rating in a report on Tuesday, July 15th. Morgan Stanley increased their price target on NVIDIA from $170.00 to $200.00 and gave the company an "overweight" rating in a research note on Wednesday. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $200.00 price target on shares of NVIDIA in a research note on Wednesday, April 16th. Raymond James Financial increased their price target on NVIDIA from $150.00 to $165.00 and gave the company a "strong-buy" rating in a research note on Thursday, May 29th. Finally, Arete Research raised NVIDIA to a "strong-buy" rating in a research note on Wednesday, May 21st. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, thirty-three have given a buy rating and four have assigned a strong buy rating to the company. According to data from MarketBeat.com, NVIDIA has a consensus rating of "Moderate Buy" and an average target price of $182.03.

NVIDIA Stock Down 2.3%

The company has a quick ratio of 2.96, a current ratio of 3.39 and a debt-to-equity ratio of 0.10. The business has a 50-day simple moving average of $155.30 and a two-hundred day simple moving average of $132.32. The company has a market cap of $4.24 trillion, a price-to-earnings ratio of 56.04, a PEG ratio of 1.57 and a beta of 2.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, May 28th. The computer hardware maker reported $0.81 EPS for the quarter, missing analysts' consensus estimates of $0.87 by ($0.06). The business had revenue of $44.06 billion during the quarter, compared to the consensus estimate of $43.09 billion. NVIDIA had a return on equity of 105.09% and a net margin of 51.69%. The company's revenue for the quarter was up 69.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.61 earnings per share. As a group, equities analysts forecast that NVIDIA Corporation will post 2.77 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 3rd. Stockholders of record on Wednesday, June 11th were paid a $0.01 dividend. The ex-dividend date was Wednesday, June 11th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. NVIDIA's payout ratio is presently 1.29%.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors have recently made changes to their positions in NVDA. Wealth Group Ltd. increased its stake in NVIDIA by 1.8% during the fourth quarter. Wealth Group Ltd. now owns 5,702 shares of the computer hardware maker's stock valued at $766,000 after acquiring an additional 100 shares during the period. Tallon Kerry Patrick bought a new position in NVIDIA during the fourth quarter valued at about $972,000. Brighton Jones LLC increased its stake in NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock valued at $43,631,000 after acquiring an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG increased its stake in NVIDIA by 1.0% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock valued at $315,100,000 after acquiring an additional 22,929 shares during the period. Finally, Highview Capital Management LLC DE increased its stake in NVIDIA by 6.7% during the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock valued at $7,842,000 after acquiring an additional 3,653 shares during the period. 65.27% of the stock is currently owned by institutional investors.

About NVIDIA

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.