NVIDIA (NASDAQ:NVDA) Stock Price Down 4.1% Following Insider Selling

Shares of NVIDIA Corporation (NASDAQ:NVDA) traded down 4.1% on Tuesday after an insider sold shares in the company. The stock traded as low as $200.00 and last traded at $200.04. 151,240,351 shares were traded during trading, a decline of 11% from the average daily volume of 170,333,828 shares. The stock had previously closed at $208.65.

Specifically, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink.

Wall Street Analysts Forecast Growth

Several research analysts have commented on NVDA shares. Jefferies Financial Group restated a “buy” rating and issued a $300.00 target price (up from $275.00) on shares of NVIDIA in a research report on Thursday, May 21st. Itau BBA Securities reaffirmed a “market perform” rating on shares of NVIDIA in a research note on Thursday, February 26th. Benchmark reissued a “buy” rating and set a $335.00 price target (up from $250.00) on shares of NVIDIA in a report on Thursday, May 21st. HSBC reaffirmed a “buy” rating and issued a $325.00 price objective (up from $295.00) on shares of NVIDIA in a report on Tuesday, May 19th. Finally, Truist Financial upped their price target on shares of NVIDIA from $287.00 to $307.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $305.67.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA expanded its AI ecosystem with the launch of the BioNeMo Agent Toolkit for life sciences, aimed at helping researchers run AI-driven workflows in biology, chemistry, genomics and drug discovery.
• Positive Sentiment: New partnership headlines reinforced demand for NVIDIA’s hardware, including a Fervo Energy/PNNL geothermal digital twin project and multiple collaborations built on NVIDIA AI infrastructure.
• Positive Sentiment: Several reports highlighted continued strength in NVIDIA’s core AI business, pointing to benchmark wins for the GB300 platform, strong memory demand, and ongoing adoption of its Blackwell/Vera Rubin systems.
• Neutral Sentiment: Analyst and commentary pieces continued to debate NVIDIA’s valuation, with some saying the stock still looks attractive relative to its growth while others argue the market is rotating toward memory chips, infrastructure, and other AI beneficiaries.
• Negative Sentiment: The main near-term drag is a sector-wide semiconductor selloff, with NVIDIA falling alongside peers like AMD and Intel as investors reduced exposure to high-multiple chip names.
• Negative Sentiment: Reuters reported that music company Jamendo has sued NVIDIA over alleged AI training misuse, adding a legal overhang that could create headline risk for the stock.

NVIDIA Stock Performance

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 firm has a market capitalization of $4.84 trillion, a PE ratio of 30.63, a P/E/G ratio of 0.47 and a beta of 2.22. The firm has a fifty day moving average price of $210.40 and a 200 day moving average price of $192.66.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.61 billion during the quarter, compared to analysts’ expectations of $78.42 billion. During the same period last year, the company posted $0.81 earnings per share. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. Research analysts anticipate that NVIDIA Corporation will post 8.65 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA’s payout ratio is 15.31%.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Spectrum Financial Alliance Ltd LLC boosted its holdings in shares of NVIDIA by 3.8% during the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock worth $243,000 after buying an additional 51 shares during the period. Presidio Capital Management LLC raised its position in NVIDIA by 0.4% in the fourth quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker’s stock worth $2,823,000 after purchasing an additional 53 shares in the last quarter. LMG Wealth Partners LLC grew its holdings in shares of NVIDIA by 0.7% in the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after purchasing an additional 53 shares during the last quarter. Vision Financial Markets LLC raised its holdings in NVIDIA by 1.2% during the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after purchasing an additional 53 shares during the last quarter. Finally, IMG Wealth Management Inc. lifted its position in NVIDIA by 1.4% during the 3rd quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker’s stock valued at $713,000 after purchasing an additional 54 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

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.