NVIDIA (NASDAQ:NVDA) Shares Gap Down - Should You Sell?

Key Points

• NVIDIA shares experienced a significant gap down, opening at $180.43 after closing at $1,781.90, with a recent trading price of $183.51.
• Research analysts provided mixed ratings, with four analysts rating the stock as Strong Buy, while the average target price is set at $210.21.
• The company's recent earnings report showed a revenue increase of 55.6% year-over-year, coming in at $46.74 billion, exceeding analyst expectations.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $1,781.90, but opened at $180.43. NVIDIA shares last traded at $183.51, with a volume of 49,584,748 shares changing hands.

Analyst Ratings Changes

A number of research analysts have weighed in on NVDA shares. DA Davidson raised NVIDIA from a "neutral" rating to a "buy" rating and lifted their target price for the company from $195.00 to $210.00 in a report on Thursday, September 11th. Evercore ISI lifted their target price on NVIDIA from $214.00 to $225.00 and gave the company an "outperform" rating in a report on Tuesday, September 23rd. Citigroup reduced their target price on NVIDIA from $210.00 to $200.00 and set a "buy" rating for the company in a report on Monday, September 8th. Sanford C. Bernstein reissued a "buy" rating on shares of NVIDIA in a report on Tuesday, September 23rd. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $200.00 price objective on shares of NVIDIA in a report on Wednesday, August 27th. Four research analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $210.21.

NVIDIA Stock Down 89.8%

The stock has a 50-day moving average of $176.60 and a two-hundred day moving average of $146.20. The company has a market cap of $4.41 trillion, a P/E ratio of 51.74, a P/E/G ratio of 1.29 and a beta of 2.10. The company has a debt-to-equity ratio of 0.08, a quick ratio of 3.60 and a current ratio of 4.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 27th. The computer hardware maker reported $1.05 earnings per share for the quarter, topping analysts' consensus estimates of $1.01 by $0.04. The company had revenue of $46.74 billion during the quarter, compared to the consensus estimate of $45.65 billion. NVIDIA had a return on equity of 101.74% and a net margin of 52.41%.NVIDIA's quarterly revenue was up 55.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.68 EPS. NVIDIA has set its Q3 2026 guidance at EPS. On average, research analysts anticipate that NVIDIA Corporation will post 2.77 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Thursday, September 11th will be given a $0.01 dividend. The ex-dividend date is Thursday, September 11th. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. NVIDIA's payout ratio is presently 1.14%.

Insider Transactions at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 30,500 shares of the business's stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $176.40, for a total value of $5,380,200.00. Following the completion of the sale, the chief financial officer owned 2,883,402 shares in the company, valued at approximately $508,632,112.80. The trade was a 1.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Harvey C. Jones sold 250,000 shares of the business's stock in a transaction that occurred on Thursday, September 18th. The shares were sold at an average price of $176.21, for a total value of $44,052,500.00. Following the completion of the sale, the director owned 7,183,280 shares of the company's stock, valued at $1,265,765,768.80. The trade was a 3.36% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 4,050,558 shares of company stock valued at $701,164,609. Insiders own 4.17% of the company's stock.

Institutional Investors Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NVDA. Kingstone Capital Partners Texas LLC lifted its holdings in shares of NVIDIA by 267,959.7% during the second quarter. Kingstone Capital Partners Texas LLC now owns 382,373,765 shares of the computer hardware maker's stock valued at $64,976,521,000 after purchasing an additional 382,231,120 shares in the last quarter. Norges Bank bought a new position in shares of NVIDIA during the second quarter valued at $51,386,863,000. Nuveen LLC bought a new position in shares of NVIDIA during the first quarter valued at $15,089,414,000. Goldman Sachs Group Inc. lifted its holdings in shares of NVIDIA by 123.5% during the first quarter. Goldman Sachs Group Inc. now owns 187,995,213 shares of the computer hardware maker's stock valued at $20,374,921,000 after purchasing an additional 103,889,872 shares in the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of NVIDIA by 12,173.2% during the first quarter. GAMMA Investing LLC now owns 48,837,781 shares of the computer hardware maker's stock valued at $5,293,039,000 after purchasing an additional 48,439,859 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Company Profile

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.

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