NVE (NASDAQ:NVEC) Trading Up 5.7% - Still a Buy?

Key Points

• NVE shares rose 5.7% to about $106.26, although trading volume was just 5,029 shares—96% below the average daily volume.
• Analyst sentiment remains broadly positive, with the stock carrying an average “Buy” rating. NVE reported quarterly EPS of $1.32, revenue of $11.03 million, and a 57.64% net margin.
• The company pays a $4.00 annualized dividend, yielding approximately 3.8%, but its 107.53% payout ratio exceeds earnings. Insiders have recently sold shares, while institutional investors own nearly 66% of the stock.

NVE Corporation (NASDAQ:NVEC - Get Free Report)'s stock price shot up 5.7% on Tuesday . The company traded as high as $105.20 and last traded at $106.2550. 5,029 shares were traded during trading, a decline of 96% from the average daily volume of 132,059 shares. The stock had previously closed at $100.57.

Analysts Set New Price Targets

Several brokerages have recently issued reports on NVEC. Weiss Ratings upgraded shares of NVE from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd. Wall Street Zen downgraded shares of NVE from a "buy" rating to a "hold" rating in a research report on Saturday, September 12th. One research analyst has rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has an average rating of "Buy".

NVE Stock Up 0.5%

The stock has a market capitalization of $505.49 million, a P/E ratio of 28.08 and a beta of 1.36. The business has a fifty day moving average price of $107.14 and a 200-day moving average price of $93.67.

NVE (NASDAQ:NVEC - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The semiconductor company reported $1.32 earnings per share (EPS) for the quarter. The business had revenue of $11.03 million for 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 disclosed a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Monday, August 3rd were given a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date was Monday, August 3rd. NVE's dividend payout ratio is 107.53%.

Insider Transactions at NVE

In other NVE 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 transaction of $2,145,498.60. Following the completion of the sale, the director directly owned 17,932 shares in the company, valued at $1,819,918.68. The trade was a 54.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders sold 48,371 shares of company stock valued at $5,249,226 over the last 90 days. Company insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On NVE

Institutional investors and hedge funds have recently made changes to their positions in the business. Ranger Investment Management L.P. purchased a new stake in NVE during the second quarter valued at approximately $12,686,000. Bank of New York Mellon Corp bought a new stake in shares of NVE during the 2nd quarter valued at $4,879,000. WINTON GROUP Ltd bought a new stake in shares of NVE during the 2nd quarter valued at $497,000. Finally, Odyssean LLC purchased a new stake in shares of NVE in the 2nd quarter worth $248,000. Hedge funds and other institutional investors own 65.95% of the company's stock.

About NVE

NVE Corporation NASDAQ: NVEC is a technology company that develops and manufactures devices based on spintronics, a field that uses the spin of electrons to create electronic components. The company's products are designed to provide sensing, data transfer and other electronic functions in applications where low power consumption, small size and high reliability are important.

NVE offers magnetic sensors, couplers and isolators, including standard and custom components for industrial, medical, automotive and other electronic systems.

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