NVE (NASDAQ:NVEC) Releases Earnings Results

NVE (NASDAQ:NVEC) posted its quarterly earnings data on Wednesday. The semiconductor company reported $0.65 EPS for the quarter, FiscalAI reports. The company had revenue of $5.58 million during the quarter. NVE had a net margin of 58.15% and a return on equity of 30.42%.

Here are the key takeaways from NVE’s conference call:

• Second-quarter revenue fell 8% year over year, with product sales down 9% due to a medical-device customer’s inventory adjustment and a 95% decline in defense sales. Management characterized these issues as temporary and expects medical and defense sales to recover in the current quarter.
• Distributor sales increased 67% year over year in the quarter, reflecting stronger industry conditions and demand for both new and legacy products. Management expects second-half revenue to be broadly consistent with the first half and cited broad-based growth across direct, distributor, and contract R&D revenue.
• Profitability and cash generation remained strong, with a 78% gross margin, 55% operating margin, 54% net margin, and $11.1 million of operating cash flow in the first six months. Cash and marketable securities rose to $44.4 million, and the company declared another $1-per-share quarterly dividend.
• NVE launched wafer-level chip-scale sensors and gear sensors aimed at precision motion applications in industrial automation, robotics, and humanoid robotics. Management reported early design wins and said the products could scale from sampling volumes to substantially larger orders, although customer adoption may take several quarters.
• CEO Pete Eames said the leadership transition and board expansion are intended to build on the company’s existing strategy, with a focus on leveraging recent capacity expansion for products targeting robotics, power conversion, and the “artificial intelligence of things.” The company cited patents, trade secrets, and internal expertise as key competitive barriers.

NVE Price Performance

NVEC opened at $68.36 on Friday. The business has a fifty day simple moving average of $105.30 and a 200 day simple moving average of $100.03. NVE has a 1 year low of $57.21 and a 1 year high of $135.00. The company has a market capitalization of $330.86 million, a PE ratio of 18.38 and a beta of 1.34.

NVE Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 30th. Stockholders of record on Monday, November 2nd will be given a $1.00 dividend. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $4.00 annualized dividend and a dividend yield of 5.9%. NVE’s dividend payout ratio is presently 107.53%.

Insider Buying and Selling

In related news, Director Daniel Baker sold 21,140 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $101.49, for a total value of $2,145,498.60. Following the completion of the sale, the director directly owned 17,932 shares in the company, valued at approximately $1,819,918.68. The trade was a 54.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders have sold 48,371 shares of company stock worth $5,249,226 over the last 90 days. 2.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Ranger Investment Management L.P. bought a new stake in NVE during the second quarter worth $12,686,000. Merrion Investment Management Co LLC boosted its holdings in shares of NVE by 10.0% during the 3rd quarter. Merrion Investment Management Co LLC now owns 47,590 shares of the semiconductor company’s stock valued at $5,239,000 after acquiring an additional 4,325 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of NVE during the 2nd quarter valued at $4,879,000. Kopp Family Office LLC bought a new stake in NVE during the 3rd quarter worth $750,000. Finally, WINTON GROUP Ltd bought a new stake in NVE during the 2nd quarter worth $497,000. Institutional investors and hedge funds own 65.95% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have weighed in on NVEC shares. Wall Street Zen downgraded NVE from a “buy” rating to a “hold” rating in a research note on Saturday, September 12th. Weiss Ratings raised shares of NVE from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Buy rating. According to data from MarketBeat.com, the stock has a consensus rating of “Buy”.

NVE News Roundup

Here are the key news stories impacting NVE this week:

• Positive Sentiment: NVE declared a quarterly dividend of $1.00 per share, payable November 30 to shareholders of record November 2. The annualized payout is $4.00 per share, providing a notable income component. NVE Reports Second-Quarter Results and Dividend
• Positive Sentiment: First-half fiscal 2027 revenue increased 36% to $16.87 million, while net income rose 39% to $9.57 million. Management also highlighted potential upside from robotics applications during the earnings call. NVE Earnings Call Highlights Robotics Upside
• Neutral Sentiment: NVE remains highly profitable, reporting $0.65 in quarterly EPS, a 57.6% net margin, and a 30.5% return on equity. However, the company’s small revenue base and limited trading liquidity can amplify stock-price volatility. NVE Financial Data
• Negative Sentiment: Second-quarter revenue fell 8% year over year to $5.83 million, product sales declined to $5.58 million, net income dropped 4% to $3.17 million, and diluted EPS slipped from $0.68 to $0.65. The sequential slowdown overshadowed the strong first-half comparison. NVE Stock Reaction to Earnings
• Negative Sentiment: Two law firms announced investigations into whether NVE may have violated federal securities laws following the October 21 disclosure. The notices do not establish wrongdoing, but they add legal and reputational uncertainty. NVE Securities Fraud Investigation
• Negative Sentiment: Insider-trading data show nine open-market sales and no purchases by insiders over the past six months, including 48,371 shares sold by Daniel A. Baker for an estimated $5.25 million. This may reinforce investor concerns about near-term valuation and momentum.

NVE Company Profile

NVE Corporation (NASDAQ: NVEC) develops and manufactures spintronic devices, which use the effects of electron spin to sense, store and transmit information. The company’s technology is designed to provide low-power, high-performance solutions for applications that require magnetic sensing, data transfer or nonvolatile memory.

NVE’s product portfolio includes magnetic field sensors, magnetic couplers and isolators, and other components based on giant magnetoresistance (GMR) and tunnel magnetoresistance (TMR) technologies.