NVIDIA (NASDAQ:NVDA) Stock Price Down 1.9% Following Insider Selling

Key Points

• NVIDIA's stock price fell by 1.9%, trading down to $179.67 with a notable drop in trading volume by 71% compared to its average.
• Analysts show strong bullish sentiment, with upgrades and target price increases from several firms, resulting in a consensus rating of "Moderate Buy" and an average target price of $185.97.
• The company reported a 69.2% year-over-year revenue increase, with earnings per share of $0.81 falling short of estimates, highlighting mixed quarterly performance.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares were down 1.9% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $180.89 and last traded at $179.67. Approximately 69,979,618 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 242,761,375 shares. The stock had previously closed at $183.16.

Specifically, CEO Jen Hsun Huang sold 75,000 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $181.38, for a total value of $13,603,500.00. Following the completion of the transaction, the chief executive officer directly owned 72,998,225 shares of the company's stock, valued at $13,240,418,050.50. This represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Jen Hsun Huang sold 75,000 shares of the company's stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $182.74, for a total value of $13,705,500.00. Following the completion of the transaction, the chief executive officer directly owned 73,148,225 shares of the company's stock, valued at $13,367,106,636.50. 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 company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $182.38, for a total value of $13,678,500.00. Following the completion of the transaction, the chief executive officer directly owned 73,223,225 shares of the company's stock, valued at $13,354,451,775.50. This represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Morgan Stanley upped their price target on NVIDIA from $170.00 to $200.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Piper Sandler set a $225.00 price target on NVIDIA and gave the company an "overweight" rating in a report on Wednesday. Jefferies Financial Group upped their price target on NVIDIA from $185.00 to $200.00 in a report on Wednesday, July 16th. Loop Capital boosted their price objective on NVIDIA from $175.00 to $250.00 and gave the company a "buy" rating in a research note on Wednesday, June 25th. Finally, Barclays boosted their price objective on NVIDIA from $170.00 to $200.00 and gave the company an "overweight" rating in a research note on Tuesday, June 17th. One research analyst has rated the stock with a sell rating, five have given a hold rating, thirty-two have given a buy rating and four have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, NVIDIA currently has an average rating of "Moderate Buy" and a consensus target price of $186.33.

NVIDIA Price Performance

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 company has a market cap of $4.40 trillion, a price-to-earnings ratio of 58.21, a price-to-earnings-growth ratio of 1.59 and a beta of 2.14. The company has a fifty day simple moving average of $163.96 and a two-hundred day simple moving average of $135.45.

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

NVIDIA Dividend Announcement

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

Institutional Trading of NVIDIA

Large investors have recently made changes to their positions in the stock. Harbor Asset Planning Inc. purchased a new stake in NVIDIA in the 2nd quarter valued at about $28,000. Winnow Wealth LLC purchased a new stake in NVIDIA in the 2nd quarter valued at about $32,000. Longfellow Investment Management Co. LLC grew its holdings in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after buying an additional 67 shares during the period. Spurstone Advisory Services LLC purchased a new stake in NVIDIA in the 2nd quarter valued at about $40,000. Finally, EDENTREE ASSET MANAGEMENT Ltd purchased a new stake in NVIDIA in the 2nd quarter valued at about $54,000. Institutional investors and hedge funds own 65.27% of the company's stock.

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.