NVIDIA (NASDAQ:NVDA) Stock Price Down 4.4% - Here's Why

Key Points

• NVIDIA's stock decreased by 4.4% on Tuesday, trading as low as $179.70, with a total volume of 201,945,264 shares, a 12% decline from its average volume.
• Several analysts have issued positive outlooks for NVIDIA, with Jefferies Financial Group raising their price target to $220.00 and maintaining a "buy" rating.
• Insider sales include CFO Colette Kress selling 30,500 shares for approximately $5.38 million on September 19, reflecting a decrease in her overall ownership of the stock.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shares dropped 4.4% on Tuesday . The stock traded as low as $179.70 and last traded at $180.12. Approximately 201,945,264 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 229,888,609 shares. The stock had previously closed at $188.32.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on NVDA. Jefferies Financial Group reiterated a "buy" rating and issued a $220.00 price objective (up from $205.00) on shares of NVIDIA in a research report on Monday, September 29th. Benchmark lifted their price objective on NVIDIA from $190.00 to $220.00 and gave the stock a "buy" rating in a research note on Thursday, August 28th. Weiss Ratings restated a "buy (b)" rating on shares of NVIDIA in a report on Wednesday, October 8th. BNP Paribas raised shares of NVIDIA to a "hold" rating in a report on Friday, August 1st. Finally, DA Davidson upgraded NVIDIA from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $195.00 to $210.00 in a research report on Thursday, September 11th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $214.15.

NVIDIA Price Performance

The company's 50-day moving average is $179.32 and its two-hundred day moving average is $151.57. The company has a debt-to-equity ratio of 0.08, a current ratio of 4.21 and a quick ratio of 3.60. The firm has a market cap of $4.38 trillion, a P/E ratio of 51.32, a PEG ratio of 1.32 and a beta of 2.12.

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

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 2nd. Stockholders of record on Thursday, September 11th were paid a $0.01 dividend. The ex-dividend date of this dividend was Thursday, September 11th. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. NVIDIA's dividend payout ratio is 1.14%.

Insider Activity at NVIDIA

In other news, CFO Colette Kress sold 30,500 shares of NVIDIA stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $176.40, for a total value of $5,380,200.00. Following the completion of the transaction, the chief financial officer owned 2,883,402 shares in the company, valued at $508,632,112.80. This trade represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jen Hsun Huang sold 75,000 shares of the business's stock in a transaction that occurred on Friday, October 10th. The stock was sold at an average price of $190.20, for a total transaction of $14,265,000.00. Following the completion of the transaction, the chief executive officer directly owned 70,558,203 shares of the company's stock, valued at approximately $13,420,170,210.60. This represents a 0.11% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,753,937 shares of company stock valued at $665,807,776. 4.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

Hedge funds and other institutional investors have recently made changes to their positions in the business. Harbor Asset Planning Inc. purchased a new position in shares of NVIDIA in the second quarter valued at $28,000. Winnow Wealth LLC purchased a new stake in shares of NVIDIA during the 2nd quarter worth $32,000. Longfellow Investment Management Co. LLC lifted its holdings in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Spurstone Advisory Services LLC purchased a new position in NVIDIA in the 2nd quarter worth $40,000. Finally, EDENTREE ASSET MANAGEMENT Ltd purchased a new position in shares of NVIDIA during the second quarter worth $54,000. Hedge funds and other institutional investors own 65.27% of the company's stock.

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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