NVIDIA (NASDAQ:NVDA) Trading Down 3% - Here's Why

Key Points

• NVIDIA's stock has decreased by 3%, trading as low as $168.65 after closing previously at $174.18, with trading volume down 66% from its average.
• Analysts maintain a positive outlook on NVIDIA, with target prices ranging from $210 to $235, while the stock holds an average rating of "Moderate Buy".
• The company recently reported a quarterly EPS of $1.05, surpassing expectations, alongside a significant year-over-year revenue increase of 55.6%.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) dropped 3% on Tuesday . The stock traded as low as $168.65 and last traded at $169.01. Approximately 81,016,880 shares changed hands during trading, a decline of 66% from the average daily volume of 238,274,547 shares. The stock had previously closed at $174.18.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. TD Cowen upped their target price on shares of NVIDIA from $140.00 to $235.00 and gave the stock a "buy" rating in a research note on Tuesday, August 19th. Wedbush reaffirmed an "outperform" rating and set a $210.00 price objective on shares of NVIDIA in a research report on Thursday, August 28th. Stifel Nicolaus increased their price objective on NVIDIA from $202.00 to $212.00 and gave the company a "buy" rating in a report on Monday, August 25th. Citigroup reissued a "buy" rating and set a $210.00 target price (up previously from $190.00) on shares of NVIDIA in a research report on Thursday, August 28th. Finally, KeyCorp reissued an "overweight" rating and set a $230.00 price objective (up previously from $215.00) on shares of NVIDIA in a report on Thursday, August 28th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, NVIDIA presently has an average rating of "Moderate Buy" and a consensus price target of $207.69.

NVIDIA Stock Down 2.8%

The firm's 50-day simple moving average is $171.43 and its 200 day simple moving average is $139.35. The company has a debt-to-equity ratio of 0.08, a quick ratio of 3.60 and a current ratio of 4.21. The company has a market capitalization of $4.11 trillion, a PE ratio of 48.20, a price-to-earnings-growth ratio of 1.30 and a beta of 2.10.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data 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. NVIDIA had a net margin of 52.41% and a return on equity of 101.74%. The firm had revenue of $46.74 billion for the quarter, compared to the consensus estimate of $45.65 billion. During the same quarter in the previous year, the firm earned $0.68 earnings per share. The firm's revenue was up 55.6% on a year-over-year basis. NVIDIA has set its Q3 2026 guidance at EPS. As a group, equities research analysts forecast that NVIDIA Corporation will post 2.77 earnings per share for the current year.

NVIDIA Announces Dividend

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

Insider Activity

In other news, CFO Colette Kress sold 27,640 shares of the company's stock in a transaction on Monday, August 4th. The stock was 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 $526,501,340.56. This represents a 0.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jen Hsun Huang sold 75,000 shares of NVIDIA stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $179.76, for a total value of $13,482,000.00. Following the sale, the chief executive officer owned 72,848,225 shares of the company's stock, valued at approximately $13,095,196,926. This represents a 0.10% decrease in their position. The disclosure for this sale can be found here. Insiders sold 4,801,604 shares of company stock worth $747,046,639 in the last ninety days. Insiders own 4.17% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Brighton Jones LLC grew its holdings in NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock valued at $43,631,000 after buying an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG increased its position in NVIDIA by 1.0% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock worth $315,100,000 after purchasing an additional 22,929 shares in the last quarter. Highview Capital Management LLC DE raised 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 buying an additional 3,653 shares during the period. Hudson Value Partners LLC lifted its position 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 valued at $6,805,000 after buying an additional 11,900 shares in the last quarter. Finally, OV Management LLC grew its stake in NVIDIA by 6.0% during the fourth quarter. OV Management LLC now owns 94,220 shares of the computer hardware maker's stock worth $12,653,000 after buying an additional 5,293 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

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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