NVDA Stock: Analyzing the Insider Data for NVIDIA Corporation

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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 64.36% of NVIDIA Corporation (NVDA)’s shares. The total value of these holdings, in millions, is $87,644. Among active positions in the latest quarter, 534 holders increased their positions by a total of 19.05 million shares, 420 holders decreased the positions by a total of 28.46 million shares, and 100 holders held their positions. This works out to a net decrease in ownership of 9.4 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 144 holders initiated new positions by a total of 2.51 million shares and 54 holders exited their positions by a total of 1.27 million shares. This nets out to an increase of 1.25 million shares and is a bullish sign for NVDA.

In the last three months, insiders executed a total of 9 trades. 9 were sells. Insider ownership decreased by a total of 21000 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 55 sells, and ownership decreased by a net of 1.68 million shares.

Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. NVIDIA Corporation (NASDAQ:NVDA)’s short interest is 16.2 million shares, or 2.88% of the float. This represents a decrease of -1% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NVDA is a Strong buy, which implies that NVDA is expected to outperform the market based on prior trading patterns.

Conclusion

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 undervalued.

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I have been a technology and gaming writer for the last seven years for brands like CNET, The Inquirer and Pocket-lint, but I've loved technology my whole life. I've also been lucky enough to work for the BBC where I maanaged the Top Gear website and worked on countless other shos, including science and technology focused Tomorrow's World. In 2012, I presented a sSky TV show called Gadget Geeks and now I'm a writer at The Enterprise Daily.

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