John Dabiri, a director at NVIDIA Corp (NASDAQ:NVDA), recently sold 716 shares of the company's stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a price of $142 each, amounting to a total transaction value of $101,672. Following this sale, Dabiri holds 19,942 shares in the company. The transaction was made under a Rule 10b5-1 trading plan, which Dabiri adopted on December 18, 2023.
In other recent news, NVIDIA Corporation (NASDAQ:NVDA) has been under the lens of various analysts. Jefferies maintained a Buy rating on the tech giant, setting a price target of $185, while Wolfe Research boosted NVIDIA's price target to $180, maintaining an Outperform rating. Craig-Hallum also affirmed a Buy rating on NVIDIA shares, raising the price target to $175. These upgrades follow NVIDIA's record-breaking total revenue of $35.1 billion, exceeding anticipations.
The revenue outlook for the next quarter is estimated at $37.5 billion, with the company's Blackwell chips expected to significantly contribute to the revenue streams. Despite potential short-term pressure on gross margins due to the initial ramp-up of the Blackwell product, margins are expected to rebound in the second half, returning to mid-70% levels. High demand for Blackwell is expected to outstrip supply for several quarters due to supply limitations.
On another note, NVIDIA's shares experienced a significant decline, accompanied by a considerable volume of call options being sold, as observed by Susquehanna International derivative strategists. The sale of these call options appeared to be a strategic move by the investors to exit their positions. These are some of the recent developments impacting NVIDIA's performance in the market.
InvestingPro Insights
While John Dabiri's recent sale of NVIDIA shares might raise eyebrows, it's crucial to consider the broader context of NVIDIA's financial performance and market position. According to InvestingPro data, NVIDIA boasts a staggering market capitalization of $3.3 trillion, reflecting its dominant position in the semiconductor industry.
The company's financial metrics paint a picture of robust growth and profitability. NVIDIA's revenue for the last twelve months reached $113.27 billion, with an impressive year-over-year growth rate of 152.44%. This exceptional revenue growth is complemented by a strong gross profit margin of 75.86%, underscoring the company's ability to maintain pricing power in a competitive market.
InvestingPro Tips highlight NVIDIA's strengths, noting that the company has a perfect Piotroski Score of 9, indicating strong financial health. Additionally, analysts anticipate continued sales growth in the current year, with 33 analysts revising their earnings estimates upward for the upcoming period. These factors suggest that despite the director's stock sale, NVIDIA's fundamental outlook remains positive.
It's worth noting that NVIDIA's stock has delivered a substantial return of 183.9% over the past year, significantly outperforming the broader market. This performance aligns with another InvestingPro Tip, which points out NVIDIA's high return over the last year.
For investors seeking a more comprehensive analysis, InvestingPro offers 21 additional tips on NVIDIA, providing a deeper understanding of the company's financial health and market position.
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