NVIDIA (NASDAQ:NVDA) Shares Down 4.2% - Here's Why

NVIDIA Corporation (NASDAQ:NVDA) experienced a decline of 4.2% in its stock price during trading on Tuesday. The stock reached a low of $135.82 before closing at $136.02. Over the course of the day, approximately 344,941,875 shares changed hands, which is a 13% decrease from the average daily volume of 396,640,844 shares. The previous closing price for NVIDIA was $141.95.

Wall Street Analyst Insights

Several market analysts have shared their thoughts regarding NVIDIA's stock. Notable changes include Citigroup raising its price target from $170.00 to $175.00 with a “buy” rating on November 21st. Similarly, Melius Research adjusted its target from $165.00 to $185.00, also issuing a “buy” rating. Benchmark increased its price objective from $170.00 to $190.00 and maintained a “buy” rating, while Wedbush raised its objective from $160.00 to $175.00, designating it as “outperform.” Loop Capital reiterated its “buy” rating with a $175.00 target. Currently, four analysts rate the stock as a hold, thirty-nine as a buy, and one as a strong buy. According to MarketBeat data, NVIDIA has an overall consensus rating of “Moderate Buy” and a price target averaging $164.15.

NVIDIA Stock Performance

The stock's 50-day moving average stands at $134.39, while its 200-day moving average is $122.84. NVIDIA shows a debt-to-equity ratio of 0.13, with a quick ratio of 3.64 and a current ratio of 4.10. The company's market capitalization is $3.34 trillion, with a price-to-earnings (PE) ratio of 53.53 and a price-to-earnings growth (PEG) ratio of 2.60. Its beta is recorded at 1.66. NVIDIA recently posted quarterly earnings on November 20th, reporting earnings per share of $0.81, which surpassed analyst expectations of $0.69 by $0.12. The reported revenue of $35.08 billion for the quarter also exceeded expectations, which were set at $33.15 billion. As a result, NVIDIA's quarterly revenue showed a remarkable increase of 93.6% compared to the same quarter last year, up from $0.38 EPS from the previous year. Analysts estimate NVIDIA will report an average of 2.73 EPS for the current year.

NVIDIA Announces Dividend

The company recently announced a dividend, set to be paid out on December 27th. The record date for this dividend is December 5th, and the amount is $0.01 per share, indicating an annualized dividend of $0.04 and a yield of 0.03%. NVIDIA's payout ratio is currently at 1.57%. Furthermore, on August 28th, the board authorized a share buyback program worth $50 billion, which allows NVIDIA to repurchase approximately 1.6% of its shares through open market purchases. Such buyback programs typically suggest that the board believes the stock is undervalued.

Insider Activity

In recent insider trading, Director Tench Coxe sold 1,000,000 shares on September 19th at an average price of $119.27, totaling $119,270,000. Following this transaction, Coxe's direct ownership dropped to 5,852,480 shares, valued at about $698,025,289.60, representing a decrease of 14.59% in his holding. Additionally, insider Donald F. Robertson, Jr. sold 4,500 shares on September 20th at an average of $116.51, totaling around $524,295. Following this sale, Robertson's holdings decreased by 0.91%, leaving him with 492,409 shares worth approximately $57,370,572.59. In the past quarter, insiders collectively sold 2,156,270 shares valued at $254,784,327, with insiders owning 4.23% of the company's stock.

Institutional Investors' Movements

Numerous hedge funds have recently adjusted their stakes in NVIDIA. During the second quarter, Lowe Wealth Advisors LLC acquired a new position valued at $25,000. DHJJ Financial Advisors Ltd. increased its holdings by 1,900.0%, acquiring an additional 190 shares, bringing its total to 200 shares worth $25,000. CGC Financial Services LLC also entered a new position worth $26,000, while Koesten Hirschmann & Crabtree INC. acquired a stake valued at $27,000. Quest Partners LLC similarly purchased shares worth $27,000. Overall, institutional investors and hedge funds currently control 65.27% of NVIDIA's stock.

Company Overview

NVIDIA Corporation is a key player in the provision of graphics computing and networking solutions both domestically and internationally across the U.S., Taiwan, China, Hong Kong, and other regions. The company’s graphics segment offers GeForce GPUs for both gaming and PC use, along with the GeForce NOW game streaming service and related infrastructure. They also provide solutions for various gaming platforms, enterprise workstation graphics through Quadro/NVIDIA RTX GPUs, and automotive platforms for infotainment systems. NVIDIA is also involved in the development of Omniverse software for creating and managing metaverse and 3D internet applications.

Further Insights

For those considering investments, it's wise to be aware of recommendations from top analysts regarding potential investments. While NVIDIA maintains a “Moderate Buy” rating, experts suggest exploring other investment opportunities available in the market.

NVIDIA, Stocks, Earnings