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

NVIDIA Co. (NASDAQ:NVDA) experienced a decline of 4.2% during trading on Tuesday, with the stock hitting a low of $135.82 before closing at $136.02. The trading volume was approximately 344,941,875 shares, reflecting a 13% decrease from the average daily volume of 396,640,844 shares. Just a day prior, the stock closed at $141.95.

Wall Street Analyst Opinions

Several analysts have provided insights regarding NVIDIA's share price. Citigroup raised its price target for NVIDIA from $170.00 to $175.00, recommending a "buy" rating on November 21st. Melius Research increased its target from $165.00 to $185.00, also giving a "buy" rating on November 11th. Benchmark Research lifted its price target from $170.00 to $190.00 with a "buy" rating on the same date. Wedbush boosted its target from $160.00 to $175.00, maintaining an "outperform" rating. Loop Capital reiterated a "buy" rating with a $175.00 target on November 20th. Overall, four analysts have rated the stock as a hold, while thirty-nine have a buy rating, including one "strong buy". According to MarketBeat, NVIDIA currently holds a consensus rating of "Moderate Buy" with an average price target of $164.15.

NVIDIA Stock Performance Overview

NVIDIA's 50-day moving average stands at $134.39, while the 200-day moving average is $122.84. The firm holds a debt-to-equity ratio of 0.13, a quick ratio of 3.64, and a current ratio of 4.10. With a market capitalization of $3.34 trillion, NVIDIA reports a PE ratio of 53.53 and a PEG ratio of 2.60 with a beta of 1.66.

NVIDIA's most recent quarterly earnings report was released on November 20th. The company announced earnings of $0.81 per share, surpassing analysts' expectations of $0.69 by $0.12. The firm reported revenue of $35.08 billion, exceeding predictions of $33.15 billion. The net margin reached 55.69%, with a return on equity of 114.83%. Compared to the same quarter last year, NVIDIA saw a revenue increase of 93.6%. Analysts predict NVIDIA will post $2.73 earnings per share for the current year.

NVIDIA Announces Dividend Plans

The company recently revealed a quarterly dividend that is set to be paid on December 27th. Shareholders on record as of December 5th will receive a dividend of $0.01 per share. The ex-dividend date will also be December 5th. This translates to an annualized dividend of $0.04, giving it a yield of 0.03%. Currently, NVIDIA's payout ratio is 1.57%.

In August, NVIDIA authorized a significant share buyback program, allowing the company to repurchase up to $50 billion worth of shares, which accounts for around 1.6% of its shares outstanding. Such buyback plans usually indicate that the board believes the stock is undervalued.

Insider Trading Activity

In terms of insider transactions, Director Tench Coxe sold 1,000,000 shares on September 19th at an average price of $119.27, totaling $119,270,000. Post-sale, he holds 5,852,480 shares worth roughly $698,025,289.60, representing a 14.59% reduction in his position. Additionally, insider Donald F. Robertson Jr. sold 4,500 shares at an average price of $116.51 for $524,295. This sale reflects a 0.91% decrease in their holdings. Insiders sold a total of 2,156,270 shares valued at $254,784,327 in the latest quarter, with insiders owning 4.23% of the total stocks.

Institutional Investor Activity

Recent activity shows that several hedge funds have either increased or decreased their holdings in NVIDIA. For instance, Lowe Wealth Advisors LLC acquired a new stake in the second quarter valued at $25,000. DHJJ Financial Advisors Ltd. increased its shares by 1,900% in the same period. CGC Financial Services LLC and Koesten Hirschmann & Crabtree INC. made similar acquisitions, each valued around $27,000. Currently, institutional investors and hedge funds own 65.27% of NVIDIA's stock.

About NVIDIA

NVIDIA Corporation offers various solutions in graphics, computing, and networking across the globe, including the United States, Taiwan, China, and Hong Kong. Their products include GeForce GPUs designed for gaming and PCs, GeForce NOW streaming services, enterprise workstation graphics through Quadro/NVIDIA RTX GPUs, automotive platforms for infotainment, and Omniverse software for metaverse applications.

Conclusion

As NVIDIA's stock faces volatility, investors are closely watching market reactions and analyst opinions to gauge future performances. With substantial buyback plans and good quarterly results, the long-term outlook could remain promising.

NVIDIA, Stocks, Earnings