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

NVIDIA Corporation (NASDAQ:NVDA) dropped 2% during trading on Tuesday following insider selling activity. The company traded as low as $224.85 and last traded at $225.73. 118,663,629 shares changed hands during 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 NVIDIA stock in a transaction that occurred 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 completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Mark Stevens sold 400,000 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $228.78, for a total value of $91,512,000.00. Following the completion of the transaction, the director directly owned 2,958,770 shares in the company, valued at approximately $676,907,400.60. This represents a 11.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In related news, EVP Timothy Teter sold 30,000 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. This trade represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on NVDA shares. JPMorgan Chase & Co. boosted their price target on NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a report on Thursday, August 27th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $350.00 price objective on shares of NVIDIA in a research note on Monday, August 24th. Melius Research set a $420.00 price objective on NVIDIA in a research report on Thursday, August 27th. Mizuho set a $315.00 price objective on NVIDIA and gave the company an “outperform” rating in a research note on Thursday, August 27th. Finally, Robert W. Baird set a $500.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a report on Thursday, May 21st. Two investment 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. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $324.34.

More NVIDIA News

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 market capitalization of $5.26 trillion, a P/E ratio of 27.61, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22. The business has a 50 day moving average of $212.35 and a 200 day moving average of $203.02. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s revenue was up 105.9% on a year-over-year basis. During the same period last year, the company posted $1.05 EPS. On average, sell-side analysts predict that NVIDIA Corporation will post 9.1 earnings per share for the current year.

NVIDIA Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, September 10th. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA announced that its board has initiated 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 repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the 4th quarter worth $26,000. Longview Financial Advisors Inc. acquired a new position in NVIDIA during the 1st quarter valued at about $27,000. Montgomery Financial Services LLC acquired a new position in NVIDIA during the 2nd quarter valued at about $28,000. Longfellow Investment Management Co. LLC raised its stake in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after buying an additional 67 shares during the last quarter. Finally, Langley Wealth Management LLC purchased a new stake in NVIDIA in the second quarter valued at about $34,000. Institutional investors 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.