Terrence Glarner, a director at NVE Corp (NASDAQ:NVEC), recently sold 500 shares of the company's common stock. The shares were sold at a price of $73.46 each, amounting to a total transaction value of $36,730. Following this transaction, Glarner retains ownership of 700 shares in the semiconductor company. The sale was executed on November 5, 2024, as per the latest SEC filing.
In other recent news, NVE Corporation reported mixed Q3 results, indicating a slowdown in chip demand. The company's total revenue fell by 5% for the quarter, attributed to a significant 14% drop in product sales. However, this was partially offset by a substantial 3,950% increase in contract R&D revenue. Despite the revenue decline, gross profit rose by 5%, thanks to an improved gross margin of 86% and a strategic shift towards direct sales.
In terms of expenses, NVE Corporation saw a 55% increase driven by higher R&D and selling, general, and administrative costs, which led to a 15% decrease in net income, resulting in earnings of $0.83 per share. In line with its strategy for growth, the company introduced the ALT521-10E sensor and announced its involvement in NASA's Europa Clipper mission.
Looking ahead, NVE Corporation plans to invest $4 million to $5 million in capital expenditures over the next two fiscal years and expects to launch new products by March 31, 2025. These recent developments underscore NVE Corporation's commitment to innovative product development and long-term growth.
InvestingPro Insights
While Terrence Glarner's recent sale of NVE Corp (NASDAQ:NVEC) shares may raise questions, a closer look at the company's financials reveals some interesting insights. According to InvestingPro data, NVE Corp boasts a market capitalization of $357.23 million and a P/E ratio of 22.16, suggesting a relatively moderate valuation for a technology company.
One of the standout features of NVE Corp is its impressive gross profit margin of 81.68% for the last twelve months as of Q2 2025. This aligns with an InvestingPro Tip highlighting the company's "impressive gross profit margins." Such high margins often indicate strong pricing power and efficient operations in the semiconductor industry.
Another notable aspect is NVE Corp's dividend policy. The company currently offers a dividend yield of 5.38%, which is significant for a tech stock. This is supported by an InvestingPro Tip stating that NVE Corp "pays a significant dividend to shareholders" and has "maintained dividend payments for 10 consecutive years." This commitment to shareholder returns could be attractive to income-focused investors, despite the recent insider sale.
It's worth noting that NVE Corp "holds more cash than debt on its balance sheet," according to another InvestingPro Tip. This strong financial position may provide the company with flexibility for future investments or to weather potential industry downturns.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 7 more tips available for NVE Corp on the InvestingPro platform, which could provide a fuller picture of the company's prospects and challenges.
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