NVIDIA (NASDAQ:NVDA) Shares Down 1% - Here's Why

Key Points

• NVIDIA shares fell about 1% to $179.59 on Wednesday with volume down ~28% from average, yet analysts remain bullish with multiple price-target upgrades and a consensus target of $258.65 and a majority "Buy" rating.
• The company posted a quarterly earnings beat — EPS $1.30 vs. $1.23 expected and revenue $57.01B vs. $54.66B, up 62.5% year-over-year with a net margin of 53.01%.
• Insiders have been selling recently (including a 350,000-share sale by Director Mark A. Stevens and a total of 3,012,203 shares sold in the last 90 days), and NVIDIA announced a nominal quarterly dividend of $0.01 (annualized $0.04).

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s stock price dropped 1% on Wednesday . The company traded as low as $179.11 and last traded at $179.59. Approximately 161,753,569 shares were traded during trading, a decline of 28% from the average daily volume of 225,533,375 shares. The stock had previously closed at $181.46.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on NVDA shares. Benchmark lifted their target price on NVIDIA from $220.00 to $250.00 and gave the company a "buy" rating in a research report on Thursday, November 20th. Bank of America increased their target price on NVIDIA from $235.00 to $275.00 and gave the stock a "buy" rating in a research note on Wednesday, October 29th. BNP Paribas Exane boosted their price objective on shares of NVIDIA from $240.00 to $250.00 and gave the company an "outperform" rating in a report on Tuesday, November 18th. Citigroup raised their price target on NVIDIA from $220.00 to $270.00 and gave the stock a "buy" rating in a research report on Thursday, November 20th. Finally, Piper Sandler set a $225.00 price objective on shares of NVIDIA and gave the company an "overweight" rating in a research report on Wednesday, August 13th. Five investment analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $258.65.

NVIDIA Price Performance

The business's fifty day simple moving average is $186.88 and its 200 day simple moving average is $171.35. The firm has a market capitalization of $4.36 trillion, a price-to-earnings ratio of 44.56, a PEG ratio of 0.89 and a beta of 2.29. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.47 and a quick ratio of 3.71.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, November 19th. The computer hardware maker reported $1.30 EPS for the quarter, beating the consensus estimate of $1.23 by $0.07. NVIDIA had a return on equity of 99.24% and a net margin of 53.01%.The firm had revenue of $57.01 billion during the quarter, compared to the consensus estimate of $54.66 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. The company's quarterly revenue was up 62.5% on a year-over-year basis. On average, research analysts forecast that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 26th. Shareholders of record on Thursday, December 4th will be given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. The ex-dividend date of this dividend is Thursday, December 4th. NVIDIA's dividend payout ratio is presently 0.99%.

Insider Transactions at NVIDIA

In related news, Director Mark A. Stevens sold 350,000 shares of the stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $176.39, for a total transaction of $61,736,500.00. Following the completion of the sale, the director directly owned 7,399,803 shares of the company's stock, valued at approximately $1,305,251,251.17. This trade represents a 4.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Jen Hsun Huang sold 75,000 shares of the business's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $177.57, for a total transaction of $13,317,750.00. Following the completion of the transaction, the chief executive officer owned 72,248,366 shares in the company, valued at approximately $12,829,142,350.62. The trade was a 0.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 3,012,203 shares of company stock worth $542,065,894 in the last 90 days. Insiders own 4.17% of the company's stock.

Institutional Investors Weigh In On NVIDIA

Hedge funds and other institutional investors have recently bought and sold shares of the business. Strategic Investment Solutions Inc. IL grew its position in shares of NVIDIA by 7.6% in the third quarter. Strategic Investment Solutions Inc. IL now owns 19,937 shares of the computer hardware maker's stock valued at $3,720,000 after purchasing an additional 1,412 shares in the last quarter. Crosspoint Financial LLC lifted its holdings in NVIDIA by 1.6% during the 3rd quarter. Crosspoint Financial LLC now owns 3,737 shares of the computer hardware maker's stock worth $697,000 after purchasing an additional 60 shares in the last quarter. Swiss Life Asset Management Ltd grew its holdings in NVIDIA by 5.3% during the 3rd quarter. Swiss Life Asset Management Ltd now owns 8,508,387 shares of the computer hardware maker's stock valued at $1,587,495,000 after buying an additional 427,202 shares in the last quarter. Steadtrust LLC grew its holdings in NVIDIA by 99.7% during the 3rd quarter. Steadtrust LLC now owns 4,872 shares of the computer hardware maker's stock valued at $909,000 after buying an additional 2,432 shares in the last quarter. Finally, Stillwater Wealth Management Group purchased a new stake in shares of NVIDIA in the third quarter worth about $5,020,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.