NVIDIA (NASDAQ:NVDA) Trading Down 4% - Here's Why

Key Points

• NVIDIA's stock dropped 4% during mid-day trading on Tuesday, trading as low as $197.93, with a significant decline in trading volume of 18% from its daily average.
• A recent research report indicated that analysts remain optimistic about NVIDIA, with five giving a Strong Buy rating and a consensus price target of $233.75.
• The company reported earnings of $1.05 per share for the last quarter, exceeding expectations, with revenue up 55.6% year-over-year.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) dropped 4% during mid-day trading on Tuesday . The stock traded as low as $197.93 and last traded at $198.69. Approximately 184,567,432 shares were traded during trading, a decline of 18% from the average daily volume of 226,297,859 shares. The stock had previously closed at $206.88.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on NVDA shares. Morgan Stanley reissued an "overweight" rating on shares of NVIDIA in a research report on Wednesday, October 29th. Daiwa Capital Markets boosted their price target on NVIDIA from $165.00 to $205.00 and gave the company an "outperform" rating in a research note on Wednesday, September 17th. JPMorgan Chase & Co. reissued a "buy" rating and issued a $215.00 price target on shares of NVIDIA in a research note on Friday, September 19th. Needham & Company LLC boosted their price target on NVIDIA from $200.00 to $240.00 and gave the company a "buy" rating in a research note on Wednesday, October 29th. Finally, Phillip Securities raised NVIDIA from a "moderate buy" rating to a "strong-buy" rating in a research note on Monday, July 14th. Five analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of $233.75.

NVIDIA Stock Down 4.0%

The stock has a market cap of $4.83 trillion, a P/E ratio of 56.61, a PEG ratio of 1.49 and a beta of 2.12. The company has a quick ratio of 3.60, a current ratio of 4.21 and a debt-to-equity ratio of 0.08. The business has a 50-day simple moving average of $182.38 and a 200-day simple moving average of $160.79.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, August 27th. The computer hardware maker reported $1.05 earnings per share (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 return on equity of 101.74% and a net margin of 52.41%.The company's revenue was up 55.6% on a year-over-year basis. 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. Analysts expect that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Dividend Announcement

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

Insider Transactions at NVIDIA

In other news, CEO Jen Hsun Huang sold 75,000 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $169.65, for a total transaction of $12,723,750.00. Following the completion of the transaction, the chief executive officer directly owned 72,698,366 shares in the company, valued at $12,333,277,791.90. The trade was a 0.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 350,000 shares of the company's stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $176.39, for a total value of $61,736,500.00. Following the transaction, the director owned 7,399,803 shares of the company's stock, valued at approximately $1,305,251,251.17. This trade represents a 4.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,578,937 shares of company stock worth $641,069,346 over the last three months. 4.17% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Brighton Jones LLC raised its stake 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 purchasing an additional 35,815 shares in the last quarter. Bank Pictet & Cie Europe AG raised its stake in shares of 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 in the last quarter. Highview Capital Management LLC DE raised its stake in shares of 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 in the last quarter. Hudson Value Partners LLC raised its stake in shares of NVIDIA by 30.7% in 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 purchasing an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. raised its stake in NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock worth $715,000 after acquiring an additional 896 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

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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