NVIDIA Shares Decline After Insider Transactions

NVIDIA Co. (NASDAQ:NVDA) experienced a 1.6% decline in its share price during trading on Monday. This drop followed the sale of shares by insider Donald F. Robertson, Jr. The stock reached a low of $130.42 before recovering slightly to close at $132.05. During midday trading, around 82,063,847 shares changed hands, significantly down by 79% from the average daily volume of 384,238,000 shares. The previous closing price stood at $134.25.

The specifics of the insider sales revealed that Donald F. Robertson, Jr. sold 4,500 shares on Friday, December 13th, at an average price of $135.28, totaling $608,760.00. After this transaction, he still owns 480,899 shares, valued at approximately $65,056,016.72, reflecting a decrease of 0.93% in his ownership. This transaction was disclosed to the Securities and Exchange Commission (SEC). Additionally, CFO Colette Kress sold 66,670 shares on the same day at an average price of $135.40 for a total of $9,027,118.00. Following this sale, she now holds 3,351,572 shares, worth about $453,802,848.80, representing a 1.95% reduction in her stake.

Analyst Ratings and Price Targets

Recent reports from various analysts highlight the company’s potential. The Goldman Sachs Group has increased their price target for NVIDIA from $150.00 to $165.00 and assigned a "buy" rating. Similarly, Piper Sandler revised their target from $140.00 to $175.00, also giving a rating of "overweight." Evercore ISI has raised its price target from $189.00 to $190.00 with an "outperform" rating, and Cantor Fitzgerald reiterated an "overweight" rating with a $175.00 target. Meanwhile, DA Davidson has increased its price goal for NVIDIA from $90.00 to $135.00, issuing a "neutral" rating. Currently, four analysts have a hold rating on the shares, while thirty-nine analysts recommend buying, and one analyst has a strong buy rating. Data shows that NVIDIA has an average rating of "Moderate Buy" and a consensus price target of approximately $164.15.

NVIDIA's Financial Overview

NVIDIA has a market capitalization of $3.23 trillion, with a price-to-earnings ratio of 51.95 and a PEG ratio of 2.43. The firm's debt-to-equity ratio is 0.13, and it boasts a strong current ratio of 4.10, as well as a quick ratio of 3.64. Its 50-day moving average price stands at $139.84, while the 200-day moving average is $126.92. In its latest earnings report on November 20th, NVIDIA posted earnings of $0.81 per share, ahead of expectations of $0.69, with quarterly revenue of $35.08 billion, surpassing forecasts of $33.15 billion. This marked a remarkable 93.6% increase year-over-year compared to a $0.38 EPS in the same quarter last year.

Dividend Announcement

NVIDIA has also announced a quarterly dividend that will be paid on December 27th to stockholders of record as of December 5th. The dividend is set at $0.01, translating to an annualized yield of 0.03%. This payout ratio is currently at 1.57%. Additionally, the Board of Directors has approved a stock repurchase plan, allowing for the buyback of up to $50 billion in outstanding shares, suggesting that the management believes the company’s stock is undervalued.

Institutional Holdings

Several hedge funds have recently increased their stake in NVIDIA. For instance, Lantz Financial LLC increased its holdings by an impressive 833.1% during the second quarter, now owning 41,188 shares valued at $5,088,000. CX Institutional saw an even more significant increase of 936.9% in its holdings, resulting in ownership of 150,085 shares valued at $18,542,000. Other firms like Cedar Mountain Advisors and Bourgeon Capital Management also reported large increases in their NVIDIA holdings. Currently, institutional investors hold 65.27% of NVIDIA's shares.

NVIDIA Company Profile

NVIDIA Corporation specializes in graphics, compute, and networking solutions in markets worldwide. The company’s Graphics segment provides GeForce GPUs for gaming, the GeForce NOW game streaming service, and various solutions for gaming platforms and enterprise workstation graphics, as well as automotive platforms and software for metaverse applications.

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