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

NVIDIA Co. (NASDAQ:NVDA - Get Free Report) experienced a decline in its stock price by 4.2% during trading on Tuesday. The stock reached a low of $135.82 before closing at $136.02. A total of approximately 344,941,875 shares were traded during the day, which is a 13% decrease compared to the average daily trading volume of 396,640,844 shares. The previous closing price was $141.95.

Wall Street Analyst Weigh In

Several equity research analysts have provided insights regarding NVIDIA's stock. For instance, Citigroup raised its price target for NVIDIA shares from $170.00 to $175.00 and maintained a "buy" rating in its report on November 21st. Melius Research also increased its price target from $165.00 to $185.00 on November 11th with a "buy" rating. Benchmark raised its target from $170.00 to $190.00, and Wedbush adjusted its target from $160.00 to $175.00 while giving an "outperform" rating. Loop Capital reiterated a "buy" rating with a price objective set at $175.00 in a research report on November 20th. According to MarketBeat, there are four analysts with a hold rating, thirty-nine analysts who recommend buying, and one who suggests a strong buy. The average rating for NVIDIA is a "Moderate Buy" with a consensus price target of $164.15.

NVIDIA Stock Performance

The 50-day moving average for NVIDIA is $134.39, while its 200-day moving average stands at $122.84. The company has a debt-to-equity ratio of 0.13, a quick ratio of 3.64, and a current ratio of 4.10. NVIDIA has a market capitalization of $3.34 trillion, with a price-to-earnings (P/E) ratio of 53.53 and a price/earnings to growth (PEG) ratio of 2.60. The stock has a beta of 1.66, indicating its volatility relative to the market.

NVIDIA recently announced its quarterly earnings on November 20th, reporting earnings of $0.81 per share. This figure exceeded analysts' expectations, which were set at $0.69, by $0.12. The company generated revenue totaling $35.08 billion for the quarter, significantly above the anticipated $33.15 billion. NVIDIA's net margin was 55.69%, with a return on equity of 114.83%. In comparison to the previous year, the quarterly revenue showed an impressive increase of 93.6%. For the current year, analysts predict an earnings per share of 2.73 for NVIDIA.

NVIDIA Announces Dividend

The company has declared a quarterly dividend to be paid on December 27th. Shareholders recorded by December 5th are entitled to receive a dividend of $0.01 per share, with the ex-dividend date also set for December 5th. This totals to an annualized dividend of $0.04, providing a dividend yield of 0.03%. Currently, NVIDIA's payout ratio is 1.57%.

Additionally, NVIDIA announced a share buyback program on August 28th, allowing the company to repurchase up to $50.00 billion of its shares. This move indicates the board's belief that the company's stock is undervalued, as buyback programs typically reflect confidence in the stock's future performance.

Insider Buying and Selling

In other developments concerning NVIDIA, Director Tench Coxe sold 1,000,000 shares on September 19th at an average price of $119.27. The total value of this transaction amounted to $119,270,000. After this sale, the director's stake in NVIDIA decreased by 14.59%, leaving him with 5,852,480 shares valued at about $698,025,289.60. Additionally, insider Donald F. Robertson, Jr. sold 4,500 shares on September 20th, totaling $524,295 at an average price of $116.51. This sale reduced his holdings by 0.91%, leaving him with 492,409 shares valued at approximately $57,370,572.59. Recent transactions disclosed indicate that insiders sold 2,156,270 shares worth $254,784,327 in the last quarter. Insiders currently own 4.23% of NVIDIA's stock.

Institutional Investors Weigh In On NVIDIA

Various hedge funds have either increased or decreased their stakes in NVIDIA recently. For instance, Lowe Wealth Advisors LLC acquired a new position in the second quarter valued at $25,000. DHJJ Financial Advisors Ltd. increased its holdings by 1,900.0% during the same period, culminating in a total of 200 shares valued at $25,000 after adding 190 shares. Other investors, such as CGC Financial Services LLC and Quest Partners LLC, also acquired new stakes amounting to $26,000 and $27,000 respectively. Currently, 65.27% of NVIDIA's stock is held by institutional investors and hedge funds.

About NVIDIA

NVIDIA Corporation specializes in graphics and compute solutions, offering a range of products across various international markets including the United States, Taiwan, China, and Hong Kong. The company provides GeForce GPUs for gaming, the GeForce NOW streaming service, enterprise workstation graphics, cloud-based visual computing solutions, automotive platforms, and software for the metaverse and 3D applications.

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