NVIDIA (NASDAQ:NVDA) Trading Down 6.2% on Insider Selling

Key Points

• NVIDIA shares fell 6.2% on Friday after insider selling, dropping to around $205 from the previous close of $218.66. Trading volume also jumped to more than 215.9 million shares, above the average session level.
• Director Mark A. Stevens sold 500,000 shares on June 4 and another 500,000 shares on June 2, totaling about $221 million in proceeds. The sales reduced his ownership by roughly 7%.
• Despite the stock pullback, analysts remain broadly bullish on NVIDIA, with a consensus rating of “Buy” and a consensus price target of about $305.67. Several firms recently raised their targets, reflecting continued optimism about AI-driven demand.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) traded down 6.2% during trading on Friday after an insider sold shares in the company. The company traded as low as $204.33 and last traded at $205.10. 215,906,206 shares changed hands during trading, an increase of 25% from the average session volume of 172,615,391 shares. The stock had previously closed at $218.66.

Specifically, Director Mark A. Stevens sold 500,000 shares of the company's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $219.83, for a total value of $109,915,000.00. Following the transaction, the director owned 6,399,771 shares of the company's stock, valued at approximately $1,406,861,658.93. This represents a 7.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Mark A. Stevens sold 500,000 shares of the company's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $222.38, for a total value of $111,190,000.00. Following the completion of the transaction, the director directly owned 6,899,771 shares in the company, valued at $1,534,371,074.98. This represents a 6.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. Citic Securities lifted their price objective on shares of NVIDIA from $242.00 to $315.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Melius Research set a $400.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. President Capital lifted their price objective on shares of NVIDIA from $280.00 to $295.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Tigress Financial reiterated a "strong-buy" rating and set a $425.00 price objective (up from $360.00) on shares of NVIDIA in a research report on Wednesday, May 27th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $350.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $305.67.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several reports and analyst notes remain constructive on NVIDIA, pointing to strong demand for AI infrastructure, Blackwell ramp potential, CUDA’s moat, and continued leadership versus other AI chipmakers. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
• Positive Sentiment: NVIDIA’s ecosystem is expanding through new partnerships and product initiatives, including AI software, connectivity, and PC-chip efforts, which supports the view that growth can extend beyond data centers. NVIDIA's New Power Play: Why Fluence Is Surging
• Positive Sentiment: Fresh coverage highlighted NVIDIA’s HBM4 memory supply certifications with Samsung, SK Hynix, and Micron, reinforcing confidence that the company is securing key components for its next-generation AI platforms. Nvidia Certifies Samsung, SK Hynix, Micron for HBM4 Supply
• Neutral Sentiment: Wall Street continues to debate whether NVIDIA’s valuation is fully justified, with some analysts still bullish while others question how much upside is left after the recent run. Nvidia's PC Chip Reveal Obscures a Bigger Catalyst for the Stock
• Neutral Sentiment: CEO Jensen Huang’s South Korea visit and comments on robotics and AI expansion underscore new market opportunities, but these are still largely long-term storylines rather than immediate earnings drivers. Nvidia CEO sees robotics as next major sector in South Korea
• Negative Sentiment: Senator Elizabeth Warren’s invitation for Huang to testify on China chip sales adds a policy and export-control overhang, which can weigh on sentiment around NVIDIA’s China business. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
• Negative Sentiment: Recent insider selling by Director Mark A. Stevens is likely adding some short-term pressure, even though it does not change NVIDIA’s operating outlook. NVIDIA insider trading filing

NVIDIA Stock Performance

The stock has a market cap of $4.96 trillion, a price-to-earnings ratio of 31.41, a price-to-earnings-growth ratio of 0.52 and a beta of 2.22. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The stock's 50-day simple moving average is $202.84 and its two-hundred day simple moving average is $190.45.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The firm had revenue of $81.62 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business's revenue was up 85.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.81 EPS. Analysts forecast that NVIDIA Corporation will post 8.04 earnings per share for the current year.

NVIDIA Increases Dividend

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

NVIDIA declared that its Board of Directors has approved a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Wealthquest Corp raised its position in NVIDIA by 15.6% in the first quarter. Wealthquest Corp now owns 27,339 shares of the computer hardware maker's stock worth $4,768,000 after purchasing an additional 3,698 shares in the last quarter. Stillwater Private Wealth LLC bought a new stake in NVIDIA during the first quarter worth about $321,000. NewEdge Advisors LLC grew its stake in NVIDIA by 3.1% during the first quarter. NewEdge Advisors LLC now owns 3,427,577 shares of the computer hardware maker's stock worth $592,253,000 after buying an additional 103,145 shares during the last quarter. Blue Edge Capital LLC grew its stake in NVIDIA by 22.2% during the first quarter. Blue Edge Capital LLC now owns 6,422 shares of the computer hardware maker's stock worth $1,120,000 after buying an additional 1,166 shares during the last quarter. Finally, First Nebraska Trust Co bought a new stake in NVIDIA during the first quarter worth about $4,418,000. Institutional investors and hedge funds own 65.27% of the company's stock.

About NVIDIA

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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