Nintendo (OTCMKTS:NTDOY) Shares Gap Down - Here's Why

Key Points

• Nintendo shares gapped down — the stock opened at $16.42 after closing at $17.01 and last traded at $16.43 on a volume of 167,824 shares.
• Analyst sentiment is mixed: Wolfe Research and Wedbush recently downgraded the stock, but MarketBeat shows a consensus of Moderate Buy (1 Strong Buy, 2 Buy, 1 Hold, 1 Sell).
• Q1 results beat expectations: Nintendo reported $0.15 EPS vs. $0.08 expected with $3.42 billion in revenue, a 21.1% net margin and ROE of 12.26%; the shares trade at a PE of 31.49 and a market cap of about $86.7 billion.

Nintendo Co. (OTCMKTS:NTDOY - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $17.01, but opened at $16.42. Nintendo shares last traded at $16.43, with a volume of 167,824 shares changing hands.

Wall Street Analysts Forecast Growth

NTDOY has been the subject of a number of analyst reports. Wolfe Research downgraded Nintendo from a "peer perform" rating to an "underperform" rating in a research report on Wednesday, November 5th. Wedbush downgraded shares of Nintendo from an "outperform" rating to a "neutral" rating in a research report on Wednesday, September 17th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy".

Nintendo Stock Down 1.9%

The company's fifty day moving average is $20.65 and its 200-day moving average is $21.72. The company has a market cap of $86.70 billion, a PE ratio of 31.49 and a beta of 0.59.

Nintendo (OTCMKTS:NTDOY - Get Free Report) last issued its quarterly earnings data on Tuesday, November 4th. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.08 by $0.07. Nintendo had a net margin of 21.10% and a return on equity of 12.26%. The firm had revenue of $3.42 billion for the quarter, compared to analysts' expectations of $464.35 billion. Equities research analysts expect that Nintendo Co. will post 0.44 EPS for the current fiscal year.

Institutional Trading of Nintendo

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Impala Asset Management LLC bought a new position in shares of Nintendo in the second quarter worth about $1,720,000. GAMMA Investing LLC lifted its holdings in Nintendo by 27.0% in the 2nd quarter. GAMMA Investing LLC now owns 20,400 shares of the company's stock worth $490,000 after purchasing an additional 4,338 shares in the last quarter. Confluence Investment Management LLC boosted its stake in Nintendo by 1.5% in the 2nd quarter. Confluence Investment Management LLC now owns 56,080 shares of the company's stock worth $1,347,000 after purchasing an additional 843 shares during the period. First Horizon Advisors Inc. grew its holdings in Nintendo by 34.9% during the 2nd quarter. First Horizon Advisors Inc. now owns 2,462 shares of the company's stock valued at $59,000 after buying an additional 637 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in Nintendo by 13.6% during the 2nd quarter. PNC Financial Services Group Inc. now owns 6,040 shares of the company's stock valued at $145,000 after buying an additional 724 shares in the last quarter. 0.02% of the stock is owned by hedge funds and other institutional investors.

Nintendo Company Profile

Nintendo Co, Ltd., headquartered in Kyoto, Japan, is a global entertainment company best known for designing, manufacturing and marketing video game hardware and software. Founded in 1889 as a playing-card company, Nintendo transitioned into electronic entertainment in the latter half of the 20th century and has since become one of the most recognizable names in interactive entertainment. The company serves markets worldwide, with major operations and customer bases in Japan, North America and Europe, and it maintains a presence through regional subsidiaries, distribution partners and digital storefronts.

Nintendo's business spans console and handheld hardware, first-party software titles, digital services and licensing.

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