NVIDIA (NASDAQ:NVDA) Shares Down 2% After Insider Selling

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 2% during trading on Tuesday following insider selling activity. The stock traded as low as $224.85 and last traded at $225.73. 118,663,629 shares traded hands during mid-day trading, a decline of 25% from the average daily volume of 158,553,531 shares. The stock had previously closed at $230.36.

Specifically, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Mark Stevens sold 400,000 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $228.78, for a total value of $91,512,000.00. Following the transaction, the director directly owned 2,958,770 shares of the company’s stock, valued at approximately $676,907,400.60. This represents a 11.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other NVIDIA news, EVP Timothy Teter sold 30,000 shares of NVIDIA stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. The trade was a 1.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on NVDA shares. Barclays reissued an “overweight” rating on shares of NVIDIA in a research note on Thursday, May 21st. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $400.00 price objective (up from $315.00) on shares of NVIDIA in a research note on Thursday, August 27th. Royal Bank Of Canada upped their target price on NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Citic Securities increased their target price on shares of NVIDIA from $242.00 to $315.00 and gave the company a “buy” rating in a research report on Friday, May 22nd. Finally, China Renaissance raised their price target on shares of NVIDIA from $319.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, August 31st. Two equities research analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, NVIDIA has an average rating of “Moderate Buy” and an average price target of $324.34.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA and Palantir launched a sovereign-AI stack for critical supply chains, initially deploying it across NVIDIA’s own manufacturing and logistics operations. The partnership could expand demand for NVIDIA’s chips, networking and software platform among industrial and government customers. NVIDIA and Palantir Bring Sovereign Intelligence to Critical Supply Chains
• Positive Sentiment: NVIDIA is working with Australian cloud and data-center partners on infrastructure that could support up to 2 gigawatts of AI capacity by 2027, strengthening its long-term position in regional AI computing. Nvidia Teams Up With Australian Partners to Build AI Factory Capacity
• Positive Sentiment: Chip startup d-Matrix plans to use NVIDIA’s chip-linking technology in its AI servers, while SolarEdge published an 800-volt data-center power framework with NVIDIA. These announcements support adoption of NVIDIA’s broader hardware and infrastructure ecosystem. Chip Startup d-Matrix to Use Nvidia Chip-Linking Technology
• Neutral Sentiment: CEO Jensen Huang identified cybersecurity as a potential next major AI application, suggesting opportunities beyond coding assistants. However, the comments are strategic rather than an immediate revenue catalyst. Nvidia CEO Says Cybersecurity Is AI’s Next Blockbuster App
• Neutral Sentiment: TSMC reported a 53.3% year-over-year revenue increase for August, confirming robust semiconductor and AI infrastructure demand. At the same time, higher manufacturing, memory and advanced-packaging costs could pressure chip designers’ margins.
• Negative Sentiment: The U.S. Department of Justice is reportedly investigating whether NVIDIA’s licensing deal with AI startup Groq was structured to avoid antitrust scrutiny. Regulatory uncertainty could increase legal costs and limit future deal flexibility. DOJ Probes Nvidia’s Licensing Deal With Groq
• Negative Sentiment: Director Mark Stevens has sold more than $235 million of NVIDIA shares in recent transactions, adding to concerns about insider profit-taking after the stock’s substantial rally. NVIDIA Director Sells 400,000 Shares
• Negative Sentiment: Investors are also comparing NVIDIA with Broadcom and AMD as rising yields compress technology valuations. Despite exceptional recent earnings growth, the stock’s premium valuation leaves it vulnerable to profit-taking and shifts in risk appetite.

NVIDIA Stock Performance

The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company has a 50 day simple moving average of $212.35 and a 200-day simple moving average of $203.02. The stock has a market capitalization of $5.26 trillion, a price-to-earnings ratio of 27.63, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the business posted $1.05 EPS. NVIDIA’s revenue for the quarter was up 105.9% compared to the same quarter last year. As a group, equities research analysts expect that NVIDIA Corporation will post 9.1 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. Shareholders of record on Thursday, September 10th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

NVIDIA announced that its board has authorized a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On NVIDIA

Several institutional investors have recently made changes to their positions in the stock. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA in the 4th quarter worth $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA during the 1st quarter valued at $27,000. Montgomery Financial Services LLC acquired a new position in NVIDIA during the second quarter worth $28,000. Longfellow Investment Management Co. LLC raised its holdings in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after buying an additional 67 shares during the last quarter. Finally, Langley Wealth Management LLC bought a new position in shares of NVIDIA in the second quarter valued at $34,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

About NVIDIA

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.