NVE Corporation NVEC
NVEC's Q1 FY2027 quarter (ended June 30, 2026) confirmed a genuine revenue and earnings inflection, with management citing new products, robotics, and AIoT opportunities alongside a semiconductor market recovery, and the stock has pulled back to $100.89 from its 52-week high of $135.00, offering a better entry than when previously flagged at $116.87. However, at 27.1x trailing earnings and 15.6x sales the valuation remains rich for a company whose FY2026 revenue of $26.3M is still 31% below the FY2023 peak of $38.3M, and CEO Daniel Baker continued selling shares into late August 2026 at $107–$121.50, extending a 24-month pattern of net insider dispositions totaling roughly 49,450 shares.
Hold pending evidence that the recovery sustains across multiple quarters and that insider selling abates.
What could go wrong
- Valuation compression. At 27.1x PE and 15.6x PS, NVEC trades at a premium to peer median PS of 9.4x; any disappointment in quarterly results could trigger a sharp de-rating given the thin institutional base of only 27 funds.
- Persistent insider selling. CEO Daniel Baker sold shares on four separate dates in August 2026 alone, and the 24-month net insider flow is negative at approximately -$5.0M, signaling limited confidence from leadership at these price levels.
- Revenue recovery stalls. FY2026 revenue of $26.3M represents only 1.8% YoY growth after two years of declines; if the Q1 FY2027 inflection does not persist, the stock's recovery narrative unwinds quickly.
- CEO transition risk. A CEO transition was announced in June 2026 alongside board expansion, introducing execution uncertainty at a microcap with limited management depth.
What would change my mind
Where this comes from: MarketBeat news, 2026-07-22 · FMP annual fundamentals, fiscal year ended 2026-03-31 and 2023-03-31 · peer_relative snapshot · insider transactions, 2026-08-17 through 2026-08-27. Orin's read on NVEC; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All NVEC filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| State Street | $39.2M | 0.0% of fund |
| Vanguard Capital Management | $22.5M | 0.0% of fund |
| Vanguard Portfolio Management | $20.4M | 0.0% of fund |
| Geode Capital Management | $16.4M | 0.0% of fund |
| Two Sigma Investments | $8.0M | 0.0% of fund |
| Morgan Stanley | $7.9M | 0.0% of fund |
30 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 43 Form 4 filings, net −$8.5M. Of the 43 on hand, 1 was an open-market purchase and 14 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about NVEC
Orin answers questions about NVEC from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 29.3× | — | 53.3× |
| EV/EBITDA | 24.5× | — | — |
| P/S | 16.84× | — | — |
| P/B | 8.8× | — | — |
15.8%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| NVECNVE Corporation | $526M | 29.3× | 24.5× | 79.3% | 57.6% | 31% |
| AXTIAXT, Inc. | $4B | — | 231.1× | 32.2% | 3.2% | 1% |
| FEIMFrequency Electronics, Inc. | $831M | 336.9× | 447.7× | 33.0% | 3.7% | 4% |
| GSITGSI Technology, Inc. | $216M | — | — | 53.3% | -62.9% | -21% |
The median is of the 1 peers listed above and nothing else — check it against the column. This company trades 91.3% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.