Recent insider trends for NVIDIA Corporation (NASDAQ:NVDA) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of NVDA, the data has some interesting implications for where the stock might be headed.
Institutions own 65.20% of NVIDIA Corporation (NVDA)’s shares. The total value of these holdings, in millions, is $74,182. Among active positions in the latest quarter, 539 holders increased their positions by a total of 19.4 million shares, 415 holders decreased the positions by a total of 28.35 million shares, and 103 holders held their positions. This works out to a net decrease in ownership of 8.95 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 154 holders initiated new positions by a total of 2.68 million shares and 51 holders exited their positions by a total of 1.26 million shares. This nets out to an increase of 1.42 million shares and is a bullish sign for NVDA.
In the last three months, insiders executed a total of 19 trades. 4 of these were buys and 15 were sells. Insider ownership decreased by a total of 623599 shares, which suggests that NVDA’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 23 buys and 61 sells, and ownership decreased by a net of 2.05 million shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. NVIDIA Corporation (NASDAQ:NVDA)’s short interest is 13.76 million shares, or 2.45% of the float. This represents an increase of 8% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for NVDA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NVDA is a Weak sell, which implies that NVDA is expected to underperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that NVIDIA Corporation (NASDAQ:NVDA) is overvalued.