NVIDIA (NASDAQ:NVDA) Trading Down 6.2% on Insider Selling

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 6.2% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $204.33 and last traded at $205.10. Approximately 215,906,206 shares traded hands during trading, an increase of 25% from the average daily volume of 172,615,391 shares. The stock had previously closed at $218.66.

Specifically, Director Mark A. Stevens sold 500,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the sale, the director directly owned 6,399,771 shares of the company’s stock, valued at $1,406,861,658.93. This represents a 7.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Mark A. Stevens sold 500,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $222.38, for a total transaction of $111,190,000.00. Following the sale, the director directly owned 6,899,771 shares in the company, valued at $1,534,371,074.98. This trade represents a 6.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Analyst Upgrades and Downgrades

Several research firms have recently commented on NVDA. KeyCorp set a $310.00 price target on shares of NVIDIA and gave the company an “overweight” rating in a research note on Thursday, May 21st. Benchmark reissued a “buy” rating and set a $335.00 price target (up from $250.00) on shares of NVIDIA in a research note on Thursday, May 21st. William Blair reissued an “outperform” rating on shares of NVIDIA in a research note on Tuesday. Wells Fargo & Company reissued an “overweight” rating and set a $315.00 price target (up from $265.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, NVIDIA presently has an average rating of “Buy” and a consensus price target of $305.67.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Several reports and analyst notes remain constructive on NVIDIA, pointing to strong demand for AI infrastructure, Blackwell ramp potential, CUDA’s moat, and continued leadership versus other AI chipmakers. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
• Positive Sentiment: NVIDIA’s ecosystem is expanding through new partnerships and product initiatives, including AI software, connectivity, and PC-chip efforts, which supports the view that growth can extend beyond data centers. NVIDIA’s New Power Play: Why Fluence Is Surging
• Positive Sentiment: Fresh coverage highlighted NVIDIA’s HBM4 memory supply certifications with Samsung, SK Hynix, and Micron, reinforcing confidence that the company is securing key components for its next-generation AI platforms. Nvidia Certifies Samsung, SK Hynix, Micron for HBM4 Supply
• Neutral Sentiment: Wall Street continues to debate whether NVIDIA’s valuation is fully justified, with some analysts still bullish while others question how much upside is left after the recent run. Nvidia’s PC Chip Reveal Obscures a Bigger Catalyst for the Stock
• Neutral Sentiment: CEO Jensen Huang’s South Korea visit and comments on robotics and AI expansion underscore new market opportunities, but these are still largely long-term storylines rather than immediate earnings drivers. Nvidia CEO sees robotics as next major sector in South Korea
• Negative Sentiment: Senator Elizabeth Warren’s invitation for Huang to testify on China chip sales adds a policy and export-control overhang, which can weigh on sentiment around NVIDIA’s China business. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
• Negative Sentiment: Recent insider selling by Director Mark A. Stevens is likely adding some short-term pressure, even though it does not change NVIDIA’s operating outlook. NVIDIA insider trading filing

NVIDIA Trading Down 6.2%

The stock has a market capitalization of $4.96 trillion, a P/E ratio of 31.41, a PEG ratio of 0.52 and a beta of 2.22. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The business’s 50 day simple moving average is $202.84 and its 200-day simple moving average is $190.45.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.62 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same period last year, the firm earned $0.81 earnings per share. As a group, analysts forecast that NVIDIA Corporation will post 8.04 EPS for the current year.

NVIDIA Increases Dividend

The company 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 $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date is Thursday, June 4th. NVIDIA’s dividend payout ratio (DPR) is 15.31%.

NVIDIA announced that its board has authorized a stock buyback program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On NVIDIA

Several hedge funds have recently bought and sold shares of the company. State Street Corp raised its holdings in shares of NVIDIA by 1.2% during the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock worth $184,911,111,000 after acquiring an additional 11,451,386 shares during the period. Geode Capital Management LLC raised its holdings in shares of NVIDIA by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock worth $109,446,217,000 after acquiring an additional 3,383,441 shares during the period. Norges Bank acquired a new stake in shares of NVIDIA during the fourth quarter worth $62,244,133,000. Bank of America Corp DE raised its holdings in shares of NVIDIA by 2.1% during the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock worth $33,345,453,000 after acquiring an additional 4,019,505 shares during the period. Finally, Legal & General Group Plc raised its holdings in shares of NVIDIA by 1.5% during the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after acquiring an additional 2,609,560 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Company Profile

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.