NVIDIA (NASDAQ:NVDA) Trading Down 1.9% - Should You Sell?

Key Points

• NVIDIA's stock price fell by 1.9%, trading down to $179.67 with a notable drop in trading volume by 71% compared to its average.
• Analysts show strong bullish sentiment, with upgrades and target price increases from several firms, resulting in a consensus rating of "Moderate Buy" and an average target price of $185.97.
• The company reported a 69.2% year-over-year revenue increase, with earnings per share of $0.81 falling short of estimates, highlighting mixed quarterly performance.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price was down 1.9% on Wednesday . The stock traded as low as $180.89 and last traded at $179.67. Approximately 69,979,618 shares were traded during trading, a decline of 71% from the average daily volume of 242,761,375 shares. The stock had previously closed at $183.16.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on NVDA shares. Phillip Securities upgraded shares of NVIDIA from a "moderate buy" rating to a "strong-buy" rating in a research note on Monday, July 14th. Morgan Stanley increased their price objective on shares of NVIDIA from $170.00 to $200.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Needham & Company LLC upped their target price on shares of NVIDIA from $160.00 to $200.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. TD Cowen upped their target price on shares of NVIDIA from $140.00 to $175.00 and gave the company a "buy" rating in a research report on Thursday, May 29th. Finally, Wells Fargo & Company upped their target price on shares of NVIDIA from $185.00 to $220.00 and gave the company an "overweight" rating in a research report on Monday. One investment 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 given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $185.97.

NVIDIA Stock Performance

The firm's fifty day moving average price is $161.55 and its 200 day moving average price is $134.24. The stock has a market capitalization of $4.44 trillion, a price-to-earnings ratio of 58.63, a price-to-earnings-growth ratio of 1.60 and a beta of 2.14. The company has a current ratio of 3.39, a quick ratio of 2.96 and a debt-to-equity ratio of 0.10.

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 (EPS) for the quarter, missing analysts' consensus estimates of $0.87 by ($0.06). The business had revenue of $44.06 billion for the quarter, compared to analyst estimates of $43.09 billion. NVIDIA had a return on equity of 105.09% and a net margin of 51.69%. NVIDIA's quarterly revenue was up 69.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.61 earnings per share. Analysts forecast that NVIDIA Corporation will post 2.77 EPS for the current fiscal year.

NVIDIA Announces Dividend

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

Insiders Place Their Bets

In other news, CFO Colette Kress sold 27,640 shares of the firm's stock in a transaction on Monday, August 4th. The shares were sold at an average price of $178.06, for a total value of $4,921,578.40. Following the sale, the chief financial officer directly owned 2,956,876 shares in the company, valued at approximately $526,501,340.56. This trade represents a 0.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Jen Hsun Huang sold 75,000 shares of NVIDIA stock in a transaction on Friday, August 8th. The stock was sold at an average price of $182.38, for a total transaction of $13,678,500.00. Following the sale, the chief executive officer owned 73,223,225 shares in the company, valued at $13,354,451,775.50. This represents a 0.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 5,687,440 shares of company stock worth $862,095,782 over the last 90 days. Company insiders own 4.17% of the company's stock.

Institutional Investors Weigh In On NVIDIA

Institutional investors and hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC boosted its holdings in shares of NVIDIA by 12.4% in the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock valued at $43,631,000 after acquiring an additional 35,815 shares in the last quarter. Bank Pictet & Cie Europe AG grew its holdings in NVIDIA by 1.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock valued at $315,100,000 after purchasing an additional 22,929 shares during the period. Highview Capital Management LLC DE grew its holdings in NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock valued at $7,842,000 after purchasing an additional 3,653 shares during the period. Hudson Value Partners LLC grew its stake in NVIDIA by 30.7% during the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock worth $6,805,000 after buying an additional 11,900 shares during the period. Finally, Voisard Asset Management Group Inc. grew its stake in NVIDIA by 1.6% during the fourth quarter. Voisard Asset Management Group Inc. now owns 6,325 shares of the computer hardware maker's stock worth $849,000 after buying an additional 101 shares during the period. 65.27% of the stock is owned by hedge funds and other institutional investors.

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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