Key Points
- NVIDIA Director Mark Stevens sold 885,000 shares on June 18 at an average price of $210.17, generating about $186 million in proceeds. After the sale, he still held over 5.2 million shares, though his position was reduced by 14.53%.
- The stock was trading lower around the time of the report, opening at $200 and falling 4.1%, despite NVIDIA’s strong longer-term performance and large market capitalization of about $4.84 trillion.
- Fundamentals remain solid: NVIDIA recently beat earnings and revenue expectations, announced an $80 billion share buyback authorization, and raised its quarterly dividend from $0.01 to $0.25 per share.
NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) Director Mark Stevens sold 885,000 shares of the stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.
NVIDIA Trading Down 4.1%
Shares of NASDAQ:NVDA opened at $200.00 on Wednesday. The stock's 50-day simple moving average is $210.62 and its two-hundred day simple moving average is $192.80. The stock has a market capitalization of $4.84 trillion, a price-to-earnings ratio of 30.63, a PEG ratio of 0.47 and a beta of 2.22. NVIDIA Corporation has a 52-week low of $145.50 and a 52-week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.
NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. The business's revenue for the quarter was up 85.2% compared to the same quarter last year. Analysts expect that NVIDIA Corporation will post 8.65 EPS for the current year.
NVIDIA declared that its board has authorized a stock buyback program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.
NVIDIA Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be issued a dividend of $0.25 per share. This is an increase 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%. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA's dividend payout ratio is currently 15.31%.
More NVIDIA News
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: NVIDIA continues to secure new AI-related partnerships and product momentum, including the launch of its BioNeMo Agent Toolkit for life sciences and additional collaborations around digital twins, robotics, and energy infrastructure. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
- Positive Sentiment: Analysts and several articles continue to frame NVIDIA as a long-term winner from AI infrastructure buildout, with some bullish commentary pointing to strong earnings growth, major data-center demand, and attractive valuation relative to its growth. Nvidia: The $1 Trillion Trade Hiding In Plain Sight
- Neutral Sentiment: The company’s latest earnings remain a positive backdrop: NVIDIA beat expectations on both EPS and revenue, with revenue up sharply year over year, reinforcing that fundamentals are still strong despite the stock’s weakness.
- Negative Sentiment: AI spending concerns are weighing on the whole chip complex, with reports that SK Hynix is slowing HBM expansion and traders worrying about the sustainability of debt-funded AI capex. That has hit NVIDIA alongside peers like AMD, Intel, Micron, and SanDisk. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
- Negative Sentiment: There is also some company-specific headline risk from a Reuters report that NVIDIA was sued by music company Jamendo over AI training, adding to near-term uncertainty. Nvidia sued by music company Jamendo over AI training
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in NVDA. Spectrum Financial Alliance Ltd LLC boosted its stake in shares of NVIDIA by 3.8% in the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker's stock valued at $243,000 after purchasing an additional 51 shares during the last quarter. Vision Financial Markets LLC boosted its position in shares of NVIDIA by 1.2% during the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock worth $866,000 after purchasing an additional 53 shares in the last quarter. Presidio Capital Management LLC increased its position in NVIDIA by 0.4% in the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock valued at $2,823,000 after buying an additional 53 shares in the last quarter. LMG Wealth Partners LLC raised its stake in NVIDIA by 0.7% during the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock worth $1,427,000 after buying an additional 53 shares during the period. Finally, IMG Wealth Management Inc. boosted its holdings in NVIDIA by 1.4% in the third quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock worth $713,000 after acquiring an additional 54 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In
Several equities research analysts have recently commented on NVDA shares. Morgan Stanley set a $288.00 price objective on NVIDIA and gave the stock an "overweight" rating in a research note on Thursday, May 21st. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $285.00 price objective (up from $250.00) on shares of NVIDIA in a research note on Wednesday, May 20th. Jefferies Financial Group reiterated a "buy" rating and set a $300.00 price objective (up from $275.00) on shares of NVIDIA in a research note on Thursday, May 21st. Needham & Company LLC reissued a "buy" rating and issued a $270.00 target price on shares of NVIDIA in a report on Tuesday, June 2nd. Finally, Seaport Research Partners raised their target price on shares of NVIDIA from $140.00 to $180.00 and gave the stock a "sell" rating in a research note on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $305.67.
Get 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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