Traders Buy Shares of NVIDIA (NVDA) on Weakness on Insider Selling

Traders purchased shares of NVIDIA Co. (NASDAQ:NVDA) on weakness during trading hours on Wednesday after an insider sold shares in the company. $448.02 million flowed into the stock on the tick-up and $427.84 million flowed out of the stock on the tick-down, for a money net flow of $20.18 million into the stock. Of all equities tracked, NVIDIA had the 26th highest net in-flow for the day. NVIDIA traded down ($1.49) for the day and closed at $266.92Specifically, CFO Colette Kress sold 11,576 shares of the business’s stock in a transaction dated Thursday, September 20th. The shares were sold at an average price of $266.31, for a total transaction of $3,082,804.56. Following the completion of the sale, the chief financial officer now directly owns 297,482 shares of the company’s stock, valued at $79,222,431.42. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Michael Byron sold 11,257 shares of the business’s stock in a transaction dated Monday, September 24th. The stock was sold at an average price of $263.94, for a total transaction of $2,971,172.58. Following the sale, the insider now directly owns 81,414 shares of the company’s stock, valued at $21,488,411.16. The disclosure for this sale can be found here. Over the last three months, insiders have sold 22,876 shares of company stock valued at $6,066,024. 4.70% of the stock is currently owned by insiders.

NVDA has been the topic of several analyst reports. Zacks Investment Research cut shares of NVIDIA from a “buy” rating to a “hold” rating in a report on Wednesday, July 11th. FBN Securities initiated coverage on shares of NVIDIA in a report on Tuesday, June 26th. They set an “outperform” rating and a $300.00 price target on the stock. Needham & Company LLC boosted their price target on shares of NVIDIA from $325.00 to $350.00 and gave the stock a “buy” rating in a report on Friday, September 14th. Morgan Stanley restated an “overweight” rating and set a $273.00 price target on shares of NVIDIA in a report on Friday, August 17th. Finally, Cowen cut their price target on shares of NVIDIA from $325.00 to $320.00 and set an “outperform” rating on the stock in a report on Friday, August 17th. Nine equities research analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average target price of $287.65.

The company has a current ratio of 7.41, a quick ratio of 6.66 and a debt-to-equity ratio of 0.23. The company has a market cap of $161.55 billion, a price-to-earnings ratio of 57.16, a PEG ratio of 3.48 and a beta of 1.62.

NVIDIA (NASDAQ:NVDA) last released its earnings results on Thursday, August 16th. The computer hardware maker reported $1.94 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.66 by $0.28. The firm had revenue of $3.12 billion for the quarter, compared to analysts’ expectations of $3.11 billion. NVIDIA had a net margin of 36.21% and a return on equity of 54.18%. The company’s quarterly revenue was up 40.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.01 earnings per share. analysts expect that NVIDIA Co. will post 7.15 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Friday, September 21st. Shareholders of record on Thursday, August 30th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 0.22%. The ex-dividend date was Wednesday, August 29th. NVIDIA’s payout ratio is 12.85%.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Legacy Financial Advisors Inc. lifted its stake in shares of NVIDIA by 111.0% during the 2nd quarter. Legacy Financial Advisors Inc. now owns 443 shares of the computer hardware maker’s stock valued at $110,000 after buying an additional 233 shares in the last quarter. Kwmg LLC purchased a new stake in shares of NVIDIA during the 2nd quarter valued at approximately $105,000. Almanack Investment Partners LLC. purchased a new stake in shares of NVIDIA during the 2nd quarter valued at approximately $127,000. Ropes Wealth Advisors LLC lifted its stake in shares of NVIDIA by 561.8% during the 2nd quarter. Ropes Wealth Advisors LLC now owns 589 shares of the computer hardware maker’s stock valued at $140,000 after buying an additional 500 shares in the last quarter. Finally, Rockefeller Capital Management L.P. purchased a new stake in shares of NVIDIA during the 2nd quarter valued at approximately $159,000. Hedge funds and other institutional investors own 65.64% of the company’s stock.

NVIDIA Company Profile (NASDAQ:NVDA)

NVIDIA Corporation operates as a visual computing company worldwide. It operates through two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for AI utilizing deep learning, accelerated computing, and general purpose computing; GRID provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units.

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