Key Points
- NVIDIA EVP Timothy Teter sold 30,460 shares for approximately $6.8 million under a pre-arranged Rule 10b5-1 trading plan, reducing his position by 1.12% while retaining about 2.69 million shares.
- NVIDIA reported better-than-expected quarterly results, with EPS of $2.22 versus $2.09 expected and revenue of $96.22 billion, up 105.9% year over year.
- Analyst sentiment remains broadly bullish, with an average “Buy” rating and a $324.34 price target, although higher yields, valuation concerns, export restrictions and rising memory costs present risks.
NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) EVP Timothy Teter sold 30,460 shares of the stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
NVIDIA Stock Down 1.5%
NVDA stock opened at $225.51 on Thursday. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $236.54. The company has a fifty day simple moving average of $215.73 and a 200 day simple moving average of $205.39. The firm has a market cap of $5.43 trillion, a PE ratio of 28.51, a PEG ratio of 1.77 and a beta of 2.22.
NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA's revenue for the quarter was up 105.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.05 earnings per share. Sell-side analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current fiscal year.
NVIDIA Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, September 10th. NVIDIA's dividend payout ratio is 12.64%.
NVIDIA News Roundup
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: Demand for NVIDIA’s AI infrastructure remains strong. Management’s outlook implies roughly 70% revenue growth in fiscal 2028, while analysts and commentary continue to highlight the Vera Rubin product ramp, expanding data-center investment and potential supply constraints as catalysts. NVIDIA demand growth article
- Positive Sentiment: Super Micro Computer began shipping NVIDIA Vera Rubin NVL72 liquid-cooled server racks, providing evidence that NVIDIA’s latest systems are moving into customer deployments and supporting continued hyperscaler capital spending. Super Micro Vera Rubin shipment article
- Positive Sentiment: NVIDIA received a Zacks upgrade to Strong Buy. Other bullish analyses point to its broad AI hardware, networking and software portfolio, while IonQ’s planned quantum-computing deployment at an NVIDIA research center expands the company’s longer-term technology ecosystem. Zacks NVIDIA analysis
- Neutral Sentiment: Potential progress in Trump-Xi discussions could improve NVIDIA’s access to China, where the company’s latest revenue forecast assumes no data-center compute sales. However, export controls and the November tariff-truce deadline leave the opportunity highly uncertain. NVIDIA China sales outlook
- Negative Sentiment: Higher Treasury yields and renewed expectations for a possible October rate increase pressured high-growth technology stocks, making NVIDIA’s elevated valuation more vulnerable to multiple compression.
- Negative Sentiment: Insider-selling reports added to investor caution. EVP Timothy Teter sold approximately $6.8 million of shares under a pre-arranged Rule 10b5-1 plan, while separate coverage described a much larger sale by a senior director without a disclosed prearranged plan. The sales do not establish a fundamental problem but can weigh on sentiment. NVIDIA insider transaction
- Negative Sentiment: Management expects higher memory costs to pressure gross margins, highlighting a shift in AI bottleneck power toward memory and optical-networking suppliers. NVIDIA CEO Jensen Huang also said AI companies should not receive antitrust or liability exemptions, a stance that may increase compliance burdens across the industry. Reuters AI regulation article
Analyst Upgrades and Downgrades
A number of research analysts recently weighed in on NVDA shares. Itau BBA Securities cut their price objective on NVIDIA from $256.00 to $218.00 in a research note on Wednesday, June 24th. President Capital increased their price target on NVIDIA from $295.00 to $330.00 in a report on Thursday, August 27th. China Renaissance lifted their price target on shares of NVIDIA from $319.00 to $330.00 and gave the company a "buy" rating in a research report on Monday, August 31st. Royal Bank Of Canada lifted their price target on shares of NVIDIA from $300.00 to $330.00 and gave the company an "outperform" rating in a research report on Thursday, August 27th. Finally, Zacks Research raised shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a report on Monday. Four analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $324.34.
Get Our Latest Stock Report on NVIDIA
Institutional Inflows and Outflows
Large investors have recently modified their holdings of the business. Envestnet Portfolio Solutions Inc. grew its stake in shares of NVIDIA by 6.7% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 997,308 shares of the computer hardware maker's stock worth $199,533,000 after acquiring an additional 62,828 shares during the last quarter. Envestnet Asset Management Inc. raised its stake in NVIDIA by 3.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 23,901,229 shares of the computer hardware maker's stock valued at $4,782,365,000 after purchasing an additional 856,390 shares during the last quarter. State Street Corp raised its stake in NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker's stock valued at $202,047,568,000 after purchasing an additional 15,897,836 shares during the last quarter. Wellington Altus USA Inc. boosted its holdings in NVIDIA by 8.0% in the 2nd quarter. Wellington Altus USA Inc. now owns 14,583 shares of the computer hardware maker's stock valued at $2,918,000 after purchasing an additional 1,081 shares during the period. Finally, Anchor Investment Management LLC boosted its holdings in NVIDIA by 4.7% in the 2nd quarter. Anchor Investment Management LLC now owns 90,989 shares of the computer hardware maker's stock valued at $18,206,000 after purchasing an additional 4,049 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.
NVIDIA Company Profile
(
Get Free Report)
NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.
The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.
Further Reading
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