NVIDIA Stock Price Declines 4.7% After Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA) experienced a significant drop of 4.7% in its stock price during trading on Wednesday, following a downgrade from Morgan Stanley. The investment firm reduced its price target from $166.00 to $152.00, although it maintains an overweight rating on NVIDIA's stock. During the trading session, NVIDIA shares reached as low as $121.72 before closing at $122.98. The trading volume was reported at 135,322,529 shares, marking a decline of 49% compared to the average volume of 267,683,500 shares, with the stock's previous close being $128.99.

Analyst Opinions and Ratings

Several analysts have recently shared their views on NVIDIA's stock. On November 12th, Redburn Atlantic initiated coverage with a "buy" rating and set a target price of $178.00. Additionally, Needham & Company LLC raised its price target from $145.00 to $160.00 while maintaining a "buy" rating on November 21st. Barclays also increased its target from $160.00 to $175.00 and kept an "overweight" rating. On November 19th, Stifel Nicolaus raised its price target from $165.00 to $180.00, also giving a "buy" rating. Meanwhile, Citigroup adjusted its target from $170.00 to $175.00, sustaining a "buy" rating. Overall, four analysts recommend holding the stock, thirty-eight have issued buy ratings, and two have given a strong buy rating. According to MarketBeat, NVIDIA currently holds a consensus rating of "Moderate Buy" and has an average price target of $166.23.

Insider Selling Activity

In other news concerning NVIDIA, executive vice president Ajay K. Puri sold 36,462 shares on January 6th at an average price of $151.10, totaling $5,509,408.20 from the sale. After this transaction, Puri owns approximately 3,902,888 shares valued at around $589,726,376.80. This sale reflects a decrease of 0.93% in his ownership. Additionally, director John Dabiri sold 716 shares on November 25th at an average price of $142.00, leading to a total of $101,672.00. Dabiri’s remaining shares are estimated to be worth around $2,831,764, indicating a 3.47% reduction in his holdings. In the last quarter, insiders sold a total of 1,108,348 shares valued at $146,506,958, representing about 4.23% of the company's stock held by insiders.

Institutional Investment Trends

A variety of institutional investors have made recent adjustments to their stakes in NVIDIA. Christopher J. Hasenberg Inc acquired a new position in NVIDIA valued at $27,000 in the third quarter. Similarly, Quest Partners LLC invested approximately $27,000 in the second quarter, while the University of Texas Texas A&M Investment Management Co. bought shares worth around $31,000 during the same period. Legend Financial Advisors Inc also established a stake valued at approximately $34,000 in the fourth quarter. Overall, institutional investors and hedge funds now own 65.27% of NVIDIA's stock.

Financial Metrics and Recent Performance

NVIDIA has a debt-to-equity ratio of 0.13, showcasing a solid financial position. Its current ratio is 4.10 and its quick ratio is 3.64. The 50-day moving average stands at $137.91, while the 200-day moving average is at $129.44. The firm's market capitalization is approximately $3.01 trillion, with a price-to-earnings ratio (P/E) of 48.40, a PEG ratio of 2.65, and a beta of 1.64. In its latest earnings report issued on November 20th, NVIDIA reported earnings per share (EPS) of $0.81 for the quarter, surpassing the consensus estimate of $0.69. The company achieved a net margin of 55.69% and a return on equity of 114.83%. Its quarterly revenue amounted to $35.08 billion, which exceeded analysts' expectations of $33.15 billion, and reflected a year-over-year increase of 93.6% in revenue.

Dividend Information

NVIDIA recently announced a quarterly dividend that was paid on December 27th. Shareholders on record as of December 5th received a dividend of $0.01 per share, translating to an annualized dividend of $0.04 and a yield of 0.03%. The ex-dividend date was also noted as December 5th. NVIDIA's dividend payout ratio currently stands at 1.57%.

Company Overview

NVIDIA Corporation specializes in providing graphics, compute, and networking solutions across the globe, including regions such as the United States, Taiwan, China, Hong Kong, and more. The company’s offerings encompass the GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service, and solutions for gaming platforms. They also provide Quadro/NVIDIA RTX GPUs for enterprise graphics, software for cloud-based computing, automotive platforms for infotainment systems, and Omniverse software for metaverse and 3D internet development.

NVIDIA, Stock, Price