NVIDIA (NASDAQ:NVDA) Stock Price Remains Steady After Insider Sale

NVIDIA Corporation (NASDAQ:NVDA) witnessed no significant change in its stock price on Thursday, remaining steady at a 0% decline after an insider transaction initiated insider selling. The stock experienced a low of $137.56 during trading before bouncing back to close at $140.11. Throughout the day, approximately 225,873,499 shares were traded, indicating a decrease of 11% when compared to the average daily trading volume of 254,016,984 shares. The previous day’s closing price stood at $140.14.

Notably, Executive Vice President Ajay K. Puri sold 36,462 shares of NVIDIA's stock in a transaction recorded on January 6th. The sale occurred at an average price of $151.10, leading to a total transaction value of $5,509,408.20. Post-transaction, Puri retains a direct ownership of 3,902,888 shares valued at approximately $589,726,376.80. This sale marks a 0.93% reduction in his overall stake. Details of this transaction were filed with the SEC and are accessible on their official website.

Analysis from Wall Street

Recent analyst reports regarding NVIDIA stock have been primarily optimistic. TD Cowen raised its price target from $165.00 to $175.00, endorsing a “buy” rating in a report dated November 21st. On November 22nd, DA Davidson adjusted its price target upward from $90.00 to $135.00 while maintaining a “neutral” rating. UBS Group also increased its target from $150.00 to $185.00, affirming a “buy” rating on November 11th. Truist Financial followed suit by revising its target from $148.00 to $167.00 in a report dated November 19th. Lastly, Needham & Company LLC enhanced its target from $145.00 to $160.00 with a “buy” recommendation on November 21st. Overall, market sentiment leans positively with four analysts giving a hold rating, thirty-nine a buy rating, and one issuing a strong buy rating. The collective consensus from analysts indicates a “Moderate Buy” status with a projected average price target of $164.63.

NVIDIA’s Stock Performance Metrics

As of now, NVIDIA has a 50-day moving average of $139.89 and a 200-day moving average of $128.54. Financial ratios indicate a strong current ratio of 4.10, a quick ratio of 3.64, alongside a modest debt-to-equity ratio of 0.13. The company’s market capitalization stands at around $3.43 trillion, with a price-to-earnings (P/E) ratio of 55.14. Furthermore, the P/E to growth (P/E/G) ratio is recorded at 2.43, with a beta of 1.64, signifying a relatively volatile stock compared to the market average.

NVIDIA reported its quarterly earnings on November 20th, showcasing an earnings per share (EPS) of $0.81, surpassing analysts' expectations of $0.69 by $0.12. The company’s return on equity stood impressively at 114.83%, and its net profit margin was noted at 55.69%. NVIDIA’s revenue for the quarter reached $35.08 billion, outshining the anticipated $33.15 billion. This reflects a remarkable increase of 93.6% when compared to the same quarter from the previous year. Analysts predict that NVIDIA is on track to achieve an EPS of 2.78 in the current fiscal year.

Dividend Information

Recently, NVIDIA also declared a quarterly dividend, which was honored on December 27th. Shareholders on record as of December 5th received a dividend of $0.01 per share, translating to an annualized dividend yield of 0.03%. The ex-dividend date was also set on December 5th. NVIDIA's dividend payout ratio (DPR) is currently noted at 1.57%.

Insights from Institutional Investors

Institutional investors have been actively adjusting their holdings in NVIDIA. Wealth Group Ltd enhanced its stake by 1.8% in the fourth quarter, now managing 5,702 shares worth $766,000 after acquiring an additional 100 shares. Similarly, Partnership Wealth Management LLC increased its holdings by 4.6%, owning 9,809 shares valued at approximately $1,317,000. Private Client Services LLC expanded its position by 3.4%, owning 15,320 shares worth $2,057,000. Hilltop Wealth Advisors LLC also raised their stake by 7.3%, owning 4,944 shares valued at $664,000. Lastly, Weaver Consulting Group grew its holdings by 0.4%, now retaining 23,925 shares worth $3,213,000. Overall, institutional investors possess about 65.27% of the company’s stock.

Company Overview

NVIDIA Corporation specializes in graphics and computing solutions as well as networking services in regions such as the United States, Taiwan, China, and Hong Kong. The company’s graphics segment provides GeForce GPUs aimed at gaming and computers, in addition to the GeForce NOW game streaming service and necessary infrastructure. NVIDIA also delivers solutions for various gaming platforms, professional graphics with Quadro/NVIDIA RTX GPUs for enterprises, and virtual GPU software for cloud-based computing. Additionally, NVIDIA develops automotive platforms for infotainment and software for building and utilizing metaverse applications.

NVIDIA, stock, insider