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

Key Points

• Nintendo shares gapped down Tuesday, opening at $14.07 versus a prior close of $15.02 and trading around $14.01 (about a 6.1% decline) on volume of 1,154,407 shares.
• Analyst coverage is mixed but leans positive, with a consensus rating of "Moderate Buy" (2 Strong Buy, 2 Buy, 4 Hold, 1 Sell).
• Nintendo reported quarterly EPS of $0.22 (beating the $0.20 estimate) but revenue of $5.18 billion missed the $5.29 billion expectation; the company set FY2025 EPS guidance at 0.488 while analysts forecast ~0.44 for the year.

Nintendo Co. (OTCMKTS:NTDOY - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $15.02, but opened at $14.07. Nintendo shares last traded at $14.01, with a volume of 1,154,407 shares changing hands.

Analyst Upgrades and Downgrades

NTDOY has been the topic of a number of recent analyst reports. Freedom Capital raised shares of Nintendo from a "hold" rating to a "strong-buy" rating in a research note on Monday, December 22nd. Zacks Research cut shares of Nintendo from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 6th. Wolfe Research raised Nintendo from an "underperform" rating to a "peer perform" rating in a research report on Thursday, January 22nd. UBS Group raised Nintendo from a "sell" rating to a "neutral" rating in a research report on Wednesday, February 4th. Finally, China Renaissance restated a "sell" rating on shares of Nintendo in a research note on Wednesday, February 4th. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy".

Nintendo Trading Down 6.1%

The firm has a market cap of $73.27 billion, a PE ratio of 24.75 and a beta of 0.57. The stock's 50 day moving average price is $14.99 and its 200 day moving average price is $18.48.

Nintendo (OTCMKTS:NTDOY - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $0.22 earnings per share for the quarter, topping analysts' consensus estimates of $0.20 by $0.02. Nintendo had a net margin of 18.91% and a return on equity of 13.03%. The firm had revenue of $5.18 billion during the quarter, compared to analysts' expectations of $5.29 billion. Nintendo has set its FY 2025 guidance at 0.488-0.488 EPS. Analysts forecast that Nintendo Co. will post 0.44 earnings per share for the current year.

Institutional Investors Weigh In On Nintendo

Large investors have recently modified their holdings of the stock. DRW Securities LLC purchased a new stake in shares of Nintendo during the 4th quarter valued at about $295,000. AdvisorShares Investments LLC grew its position in Nintendo by 4.9% in the fourth quarter. AdvisorShares Investments LLC now owns 51,703 shares of the company's stock valued at $872,000 after acquiring an additional 2,413 shares in the last quarter. Hantz Financial Services Inc. purchased a new stake in shares of Nintendo during the fourth quarter valued at approximately $875,000. PNC Financial Services Group Inc. lifted its position in shares of Nintendo by 13.6% during the fourth quarter. PNC Financial Services Group Inc. now owns 8,964 shares of the company's stock worth $151,000 after purchasing an additional 1,073 shares in the last quarter. Finally, O Brien Greene & Co. Inc boosted its stake in shares of Nintendo by 2.1% in the fourth quarter. O Brien Greene & Co. Inc now owns 38,050 shares of the company's stock valued at $642,000 after purchasing an additional 800 shares during the period. Institutional investors and hedge funds own 0.02% of the company's stock.

About Nintendo

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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