NVIDIA (NASDAQ:NVDA) Trading Down 1.4% - Here's Why

Key Points

• NVIDIA's share price decreased by 1.4%, trading as low as $178.04 before last closing at $179.42 with a significant decline in trading volume.
• Analysts have raised their price targets for NVIDIA, with Barclays setting a new target of $200.00, while Loop Capital increased theirs to $250.00, reflecting an overall consensus rating of "Moderate Buy."
• The company reported $0.81 earnings per share for the most recent quarter, missing analysts' expectations, but showing a substantial year-over-year revenue growth of 69.2%.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price fell 1.4% on Friday . The company traded as low as $178.04 and last traded at $179.42. 64,861,840 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 241,576,484 shares. The stock had previously closed at $182.02.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on NVDA shares. Barclays increased their target price on NVIDIA from $170.00 to $200.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 17th. TD Cowen lifted their price objective on shares of NVIDIA from $140.00 to $175.00 and gave the company a "buy" rating in a report on Thursday, May 29th. Piper Sandler set a $225.00 target price on shares of NVIDIA and gave the stock an "overweight" rating in a research report on Wednesday. Truist Financial upped their target price on NVIDIA from $205.00 to $210.00 and gave the stock a "buy" rating in a research note on Thursday, May 29th. Finally, Loop Capital increased their target price on NVIDIA from $175.00 to $250.00 and gave the company a "buy" rating in a research report on Wednesday, June 25th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, thirty-two have given a buy rating and four have assigned a strong buy rating to the stock. Based on data from MarketBeat, NVIDIA has a consensus rating of "Moderate Buy" and a consensus price target of $186.33.

NVIDIA Stock Performance

The firm's 50 day moving average is $163.18 and its two-hundred day moving average is $135.00. The company has a debt-to-equity ratio of 0.10, a quick ratio of 2.96 and a current ratio of 3.39. The stock has a market capitalization of $4.39 trillion, a PE ratio of 58.04, a P/E/G ratio of 1.60 and a beta of 2.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, May 28th. The computer hardware maker reported $0.81 earnings per share for the quarter, missing analysts' consensus estimates of $0.87 by ($0.06). The firm had revenue of $44.06 billion for the quarter, compared to analysts' expectations of $43.09 billion. NVIDIA had a return on equity of 105.09% and a net margin of 51.69%. The firm's quarterly revenue was up 69.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.61 earnings per share. As a group, research analysts predict that NVIDIA Corporation will post 2.77 earnings per share for the current year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 3rd. Investors of record on Wednesday, June 11th were paid a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. The ex-dividend date was Wednesday, June 11th. NVIDIA's dividend payout ratio (DPR) is currently 1.29%.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CEO Jen Hsun Huang sold 75,000 shares of NVIDIA stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $152.54, for a total value of $11,440,500.00. Following the transaction, the chief executive officer directly owned 75,548,225 shares in the company, valued at approximately $11,524,126,241.50. This trade represents a 0.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Mark A. Stevens sold 935,000 shares of NVIDIA stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $140.92, for a total value of $131,760,200.00. Following the completion of the sale, the director directly owned 9,214,697 shares in the company, valued at $1,298,535,101.24. This represents a 9.21% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 5,837,440 shares of company stock valued at $889,404,782. 4.17% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in NVDA. MML Investors Services LLC raised its holdings in shares of NVIDIA by 7.1% in the 2nd quarter. MML Investors Services LLC now owns 3,630,811 shares of the computer hardware maker's stock worth $573,632,000 after purchasing an additional 239,812 shares during the period. Monetary Management Group Inc. increased its holdings in NVIDIA by 0.7% in the second quarter. Monetary Management Group Inc. now owns 191,095 shares of the computer hardware maker's stock valued at $30,191,000 after buying an additional 1,350 shares during the last quarter. Monograph Wealth Advisors LLC grew its position in shares of NVIDIA by 2.9% during the 2nd quarter. Monograph Wealth Advisors LLC now owns 130,856 shares of the computer hardware maker's stock valued at $20,675,000 after buying an additional 3,667 shares during the last quarter. Moore Capital Management LP grew its holdings in shares of NVIDIA by 793.9% during the second quarter. Moore Capital Management LP now owns 923,620 shares of the computer hardware maker's stock valued at $145,923,000 after purchasing an additional 820,300 shares during the last quarter. Finally, Manchester Global Management UK Ltd bought a new position in NVIDIA in the 2nd quarter worth about $19,591,000. Hedge funds and other 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.

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