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Summary

  • Four insiders sold Nvidia stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Three of these four insiders decreased their holdings by more than 10%.

Nvidia Corporation (NASDAQ:NVDA) is a visual computing company, connecting people through the powerful medium of computer graphics.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Nvidia's insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Debora ShoquistEVPMarch 3-20308,719Yes186,480 shares + 26,415 options59.2%
David ShannonCAOMarch 3-1867,605Yes225,901 shares + 2,664 options22.8%
Michael ByronPAOMarch 4-74,800Yes27,688 shares14.8%
Ajay PuriEVPMarch 414,274No185,027 shares7.2%

There have been 395,398 shares sold by insiders during the last 30 days. Debora Shoquist, David Shannon, and Ajay Puri exercised options in March.

Debora Shoquist, David Shannon, and Michael Byron sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Nvidia's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
March 2014395,3980
February 201450,4580
January 201400
December 201300
November 201300
October 201300
September 20131,1900
August 201300
July 201300
June 201300
May 201300
April 201300
March 20137430
February 201300
January 201300

There have been 447,789 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

Nvidia reported the fiscal 2014 full-year, which ended January 26, financial results on February 12 with the following highlights:

Revenue$4.1 billion
Net income$440.0 million
Cash$4.7 billion
Debt$1.4 billion

The four insiders sold their shares after these results.

Nvidia's trailing 12-month net income has been trending lower during the last 12 months.

Outlook

Nvidia's fiscal 2015 first-quarter guidance is as follows:

Revenue$1.05 billion, plus or minus two percent
GAAP gross margin54.2%
GAAP operating expenses$454 million

Competition

Nvidia's competitors include Advanced Micro Devices (NYSE:AMD), Intel (NASDAQ:INTC), and Qualcomm (NASDAQ:QCOM). Here is a table comparing these companies.

CompanyNVDAAMDINTCQCOM
Market Cap:10.23B2.94B124.90B131.46B
Employees:8,80810,671107,60031,000
Qtrly Rev Growth (yoy):0.030.380.030.10
Revenue:4.13B5.30B52.71B25.47B
Gross Margin:0.550.370.600.60
EBITDA:735.38M308.00M20.56B8.49B
Operating Margin:0.120.020.240.29
Net Income:439.99M-83.00M9.62B6.39B
EPS:0.74-0.111.893.91
P/E:24.93N/A13.2919.89
PEG (5 yr expected):2.590.552.751.01
P/S:2.480.552.375.16

Nvidia has the second-highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
AMD00
INTC0890,316
QCOM0964,939

Intel and Qualcomm have also seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Nvidia, and there have not been any insiders buying Nvidia during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Nvidia has an insider ownership of 0.20%.

There are seven analyst buy ratings, 21 neutral ratings, and three sell ratings with an average price target of $17.66. Before going short Nvidia, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are bearish analyst price targets, negative EPS growth, and the intensive insider-selling activity.

Source: Nvidia: 4 Different Insiders Have Sold Shares This Month