Key Points
- Director Stephen Neal sold 15,500 NVIDIA shares for about $3.34 million at an average price of $215.73, reducing his ownership by 11.77% to 116,135 shares.
- NVIDIA shares were down 6.2% in the session cited, opening at $205.10, even though the stock remains near strong long-term levels with a market cap of $4.96 trillion.
- The company recently posted better-than-expected quarterly results, raised its dividend to $0.25 per share, and authorized an $80 billion share buyback, while analysts continue to broadly rate the stock a Buy.
NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) Director Stephen Neal sold 15,500 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the transaction, the director owned 116,135 shares in the company, valued at $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website.
NVIDIA Trading Down 6.2%
Shares of NVDA opened at $205.10 on Friday. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The firm's 50-day moving average is $203.37 and its two-hundred day moving average is $190.55. NVIDIA Corporation has a twelve month low of $140.85 and a twelve month high of $236.54. The firm has a market capitalization of $4.96 trillion, a P/E ratio of 31.41, a PEG ratio of 0.49 and a beta of 2.22.
NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly 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 business had revenue of $81.62 billion for the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company's revenue was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.81 EPS. On average, research analysts predict that NVIDIA Corporation will post 8.61 earnings per share for the current fiscal year.
NVIDIA Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.
NVIDIA announced that its board has approved a share buyback program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.
Institutional Investors Weigh In On NVIDIA
Large investors have recently bought and sold shares of the stock. Norges Bank acquired a new stake in shares of NVIDIA during the fourth quarter worth $62,244,133,000. J. Stern & Co. LLP boosted its holdings in shares of NVIDIA by 13,709.1% during the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Cardano Risk Management B.V. boosted its holdings in shares of NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker's stock worth $14,570,119,000 after purchasing an additional 70,283,539 shares during the last quarter. Capital Research Global Investors boosted its holdings in shares of NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock worth $30,855,564,000 after purchasing an additional 22,896,705 shares during the last quarter. Finally, Laurel Wealth Advisors LLC boosted its holdings in shares of NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker's stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.
Key NVIDIA News
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: NVIDIA continues to win bullish analyst coverage, with firms like China Renaissance and KeyBanc reiterating optimistic views and high price targets, reinforcing expectations for further upside. China Renaissance rating update
- Positive Sentiment: NVIDIA’s ecosystem is expanding, including a major AI partnership with Taiwan Semiconductor and new collaborations across software, memory, and connectivity, which supports future demand for its AI platforms. Taiwan Semiconductor Manufacturing Signs Major AI Deal With Nvidia
- Positive Sentiment: Jensen Huang’s trip to South Korea has highlighted new growth avenues, including robotics and deeper supplier relationships, adding to NVIDIA’s long-term growth narrative. Nvidia CEO sees robotics as next major sector in South Korea
- Positive Sentiment: Recent commentary says NVIDIA’s Blackwell ramp, CUDA software moat, and AI inference exposure keep the growth story strong, helping investors view pullbacks as buyable. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
- Positive Sentiment: The company’s new PC chip push and RTX Spark product could open another growth lane beyond data centers, even if the market is still digesting the near-term implications. Nvidia's PC Chip Reveal Obscures a Bigger Catalyst for the Stock
- Neutral Sentiment: NVIDIA recently reported strong quarterly results, beat revenue and EPS estimates, and authorized an $80 billion buyback plus a much larger dividend, but those positives are already well known and may be partly priced in. NVIDIA insider trades report
- Negative Sentiment: Broad semiconductor weakness and softer risk appetite after strong jobs data have pressured AI chip stocks, with investors questioning whether the sector’s valuation has gotten ahead of fundamentals. Nvidia stock crashes another 3% today: why Computex failed to spark a rally
- Negative Sentiment: Senator Elizabeth Warren’s invitation for Jensen Huang to testify on China chip sales adds regulatory and export-control overhang around NVIDIA’s business in China. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
- Negative Sentiment: Director Mark Stevens’ large share sale is also weighing on sentiment, since insider selling can make investors cautious even when the underlying business remains strong. NVIDIA insider trading filing
Wall Street Analyst Weigh In
A number of research firms have commented on NVDA. Wedbush boosted their target price on NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research report on Thursday, May 21st. Wolfe Research reiterated an "outperform" rating and set a $275.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Itau BBA Securities reiterated a "market perform" rating on shares of NVIDIA in a research report on Thursday, February 26th. Stifel Nicolaus set a $282.00 target price on NVIDIA and gave the stock a "buy" rating in a research report on Thursday, May 21st. Finally, Wall Street Zen upgraded NVIDIA from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 23rd. Three 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 data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $305.67.
View Our Latest Analysis on NVIDIA
About NVIDIA
(
Get Free Report)
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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