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

Key Points

• NVE shares moved above their 200-day moving average, reaching $103.75 before last trading at $100.58, compared with the 200-day average of $99.56.
• Analyst sentiment remains generally positive, with the stock carrying an average “Buy” rating, although Wall Street Zen downgraded it to “Hold.”
• NVE reported $1.32 in quarterly EPS on $11.03 million in revenue and pays a $4.00 annualized dividend, yielding about 4%; however, its dividend payout ratio is high at 107.53%, and insiders have recently sold shares.

Shares of NVE Corporation (NASDAQ:NVEC - Get Free Report) crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $99.56 and traded as high as $103.75. NVE shares last traded at $100.58, with a volume of 123,172 shares.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on NVEC shares. Wall Street Zen lowered 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 "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. One investment analyst has rated the stock with a Buy rating. Based on data from MarketBeat.com, the company has an average rating of "Buy".

NVE Stock Performance

The company's fifty day simple moving average is $106.94 and its two-hundred day simple moving average is $99.56. The company has a market capitalization of $486.81 million, a price-to-earnings ratio of 27.04 and a beta of 1.34.

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

NVE Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Monday, August 3rd were paid a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date was Monday, August 3rd. NVE's dividend payout ratio (DPR) is 107.53%.

Insiders Place Their Bets

In related news, Director Daniel Baker sold 21,140 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $101.49, for a total value of $2,145,498.60. Following the completion of the sale, the director directly owned 17,932 shares of the company's stock, valued at $1,819,918.68. The trade was a 54.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders sold 48,371 shares of company stock valued at $5,249,226 over the last three months. 2.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Ranger Investment Management L.P. acquired a new position in shares of NVE in the 2nd quarter worth approximately $12,686,000. Merrion Investment Management Co LLC increased its holdings in shares of NVE by 10.0% in the 3rd quarter. Merrion Investment Management Co LLC now owns 47,590 shares of the semiconductor company's stock valued at $5,239,000 after acquiring an additional 4,325 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of NVE during the 2nd quarter valued at approximately $4,879,000. WINTON GROUP Ltd acquired a new stake in shares of NVE during the 2nd quarter valued at approximately $497,000. Finally, Odyssean LLC acquired a new stake in shares of NVE during the 2nd quarter valued at approximately $248,000. Institutional investors own 65.95% of the company's stock.

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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