5 Overvalued Stocks Insiders are Dumping Now

1. Nvidia Corp (NASDAQ:NVDA)

Number of Hedge Fund Investors: 173

Nvidia Corp (NASDAQ:NVDA) shares are up 220% over the past one year. The stock is now trading at 74 times earnings. Mark A. Stevens, a director at Nvidia Corp’s (NASDAQ:NVDA) board, on March 28 sold 11,000 shares of Nvidia Corp (NASDAQ:NVDA) at $905.65 per share. Since then the stock fell 1%.

Orbis Global Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“Never before has following the crowd made so much money. Nor, in our estimation, so little sense. But just look at the opportunities the crowd has left for those of us willing to take a different view. We could wax lyrical about the glaring difference in value between Korean banks priced at 4 times earnings, versus Apple at 28 times, despite diverging fundamentals—Apple is increasingly at risk of bans in China, while Korean banks could double their dividends.

Or how the thick margin of safety at Intel, backed by listed stakes and real saleable assets, compares to the slim margin for error at NVIDIA Corporation (NASDAQ:NVDA), trading at 13 times next year’s projected revenue. That revenue that could be competed away over time, while Intel’s semiconductor “fabs” in the US are increasingly valuable as the east and the west drift further apart.

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