NVIDIA (NASDAQ:NVDA) Shares Down 2.6% – Here’s Why

NVIDIA Co. (NASDAQ:NVDA)’s stock price traded down 2.6% during mid-day trading on Tuesday . The company traded as low as $110.11 and last traded at $111.04. 149,593,342 shares traded hands during trading, a decline of 45% from the average session volume of 274,408,438 shares. The stock had previously closed at $114.06.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. JPMorgan Chase & Co. lifted their price objective on NVIDIA from $155.00 to $170.00 and gave the company an “overweight” rating in a research note on Thursday, November 21st. Needham & Company LLC reissued a “buy” rating and issued a $160.00 target price on shares of NVIDIA in a report on Thursday, February 27th. Melius Research lifted their target price on NVIDIA from $165.00 to $185.00 and gave the stock a “buy” rating in a report on Monday, November 11th. DZ Bank raised NVIDIA from a “hold” rating to a “strong-buy” rating in a report on Friday. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $200.00 target price on shares of NVIDIA in a report on Thursday, February 27th. Four investment analysts have rated the stock with a hold rating, thirty-eight have issued a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $169.62.

NVIDIA Stock Performance

The company has a market cap of $2.83 trillion, a P/E ratio of 45.64, a PEG ratio of 1.76 and a beta of 1.62. The firm has a 50 day moving average of $133.68 and a 200-day moving average of $132.06. The company has a quick ratio of 3.64, a current ratio of 4.10 and a debt-to-equity ratio of 0.13.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, February 26th. The computer hardware maker reported $0.89 earnings per share for the quarter, topping analysts’ consensus estimates of $0.84 by $0.05. The company had revenue of $39.33 billion during the quarter, compared to analyst estimates of $38.16 billion. NVIDIA had a return on equity of 114.83% and a net margin of 55.69%. As a group, sell-side analysts anticipate that NVIDIA Co. will post 2.77 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th will be issued a dividend of $0.01 per share. The ex-dividend date is Wednesday, March 12th. This represents a $0.04 dividend on an annualized basis and a yield of 0.03%. NVIDIA’s dividend payout ratio is currently 1.36%.

Insiders Place Their Bets

In other news, EVP Ajay K. Puri sold 36,462 shares of the stock in a transaction on Monday, January 6th. The stock was sold at an average price of $151.10, for a total transaction of $5,509,408.20. Following the completion of the sale, the executive vice president now owns 3,902,888 shares in the company, valued at approximately $589,726,376.80. This represents a 0.93 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Donald F. Robertson, Jr. sold 4,500 shares of the stock in a transaction on Friday, December 13th. The shares were sold at an average price of $135.28, for a total value of $608,760.00. Following the sale, the insider now owns 480,899 shares of the company’s stock, valued at approximately $65,056,016.72. This represents a 0.93 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,107,632 shares of company stock worth $146,405,286 over the last 90 days. Company insiders own 4.23% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Christopher J. Hasenberg Inc acquired a new stake in NVIDIA during the 3rd quarter worth about $27,000. Tacita Capital Inc acquired a new stake in NVIDIA during the 4th quarter worth about $28,000. Legend Financial Advisors Inc. acquired a new stake in NVIDIA during the 4th quarter worth about $34,000. West Financial Advisors LLC acquired a new stake in NVIDIA during the 3rd quarter worth about $36,000. Finally, Vision Financial Markets LLC acquired a new stake in NVIDIA during the 4th quarter worth about $38,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.