NVE (NASDAQ:NVEC) Share Price Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• NVE shares crossed above their 200-day moving average of $97.28, reaching $115.62 before last trading at $111.92; the stock was reported down 4.0%.
• The company reported quarterly EPS of $1.32 on $11.03 million in revenue, with a 57.64% net margin, and declared a $1.00 quarterly dividend. The annualized dividend is $4.00, yielding about 3.6%, though the payout ratio is high at 107.53%.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating, but Wall Street Zen downgraded the stock to “Hold.” Insiders have sold roughly $5.25 million of shares over the past 90 days, including a significant sale by director Daniel Baker.

NVE Corporation (NASDAQ:NVEC - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $97.28 and traded as high as $115.62. NVE shares last traded at $111.92, with a volume of 132,001 shares changing hands.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Wall Street Zen cut NVE from a "buy" rating to a "hold" rating in a research report on Saturday, September 12th. Weiss Ratings raised shares of NVE from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 23rd. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of "Buy".

NVE Stock Down 4.0%

The firm has a 50 day simple moving average of $109.51 and a two-hundred day simple moving average of $97.28. The stock has a market capitalization of $541.69 million, a P/E ratio of 30.09 and a beta of 1.34.

NVE (NASDAQ:NVEC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The semiconductor company reported $1.32 earnings per share for the quarter. NVE had a return on equity of 30.53% and a net margin of 57.64%.The business had revenue of $11.03 million during the quarter.

NVE Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Monday, August 3rd were issued a dividend of $1.00 per share. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $4.00 annualized dividend and a dividend yield of 3.6%. NVE's payout ratio is 107.53%.

Insider Transactions at NVE

In related news, Director Daniel Baker sold 21,140 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $101.49, for a total value of $2,145,498.60. Following the completion of the transaction, the director owned 17,932 shares of the company's stock, valued at $1,819,918.68. This represents a 54.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last ninety days, insiders have sold 48,371 shares of company stock worth $5,249,226. 2.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. WINTON GROUP Ltd acquired a new stake in shares of NVE during the second quarter valued at about $497,000. Odyssean LLC bought a new stake in shares of NVE during the second quarter worth about $248,000. Ranger Investment Management L.P. acquired a new position in shares of NVE in the second quarter valued at approximately $12,686,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of NVE in the second quarter valued at approximately $4,879,000. 65.95% of the stock is currently owned by institutional investors and hedge funds.

About NVE

NVE Corporation NASDAQ: NVEC develops and manufactures spintronic devices that use electron-spin properties to acquire, transmit, and store data. The company's technology is designed to provide high sensitivity, low power consumption, and electrical isolation in applications that require the transfer or detection of digital signals.

Its product portfolio includes magnetic sensors, digital isolators, and couplers. These components are used in industrial equipment, factory automation, medical devices, energy systems, transportation, and other applications that require sensing, signal isolation, or communication between electrically separated circuits.

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