NVIDIA (NASDAQ:NVDA) Trading Down 4.9% - Time to Sell?

Key Points

• NVIDIA's share price fell 4.9% to approximately $183.16, following a previous close of $192.57 on increased trading volume.
• Several analysts have maintained a buy rating on NVIDIA, with consensus estimates increasing target prices to a range between $205.00 and $225.00.
• Despite recent drops, NVIDIA reported $1.05 EPS in its last earnings release, exceeding expectations and showing a 55.6% year-over-year revenue increase.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price dropped 4.9% on Friday . The stock traded as low as $182.05 and last traded at $183.16. Approximately 260,228,509 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 230,377,609 shares. The stock had previously closed at $192.57.

Analyst Upgrades and Downgrades

NVDA has been the subject of several research analyst reports. Sanford C. Bernstein restated a "buy" rating on shares of NVIDIA in a report on Tuesday, September 23rd. Weiss Ratings restated a "buy (b)" rating on shares of NVIDIA in a report on Wednesday. Daiwa Capital Markets upped their price objective on NVIDIA from $165.00 to $205.00 and gave the company an "outperform" rating in a report on Wednesday, September 17th. Wall Street Zen raised NVIDIA from a "hold" rating to a "buy" rating in a report on Friday, September 5th. Finally, Robert W. Baird upped their target price on NVIDIA from $195.00 to $225.00 and gave the company an "outperform" rating in a report on Monday, August 25th. Four research analysts have rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of "Moderate Buy" and a consensus target price of $212.84.

NVIDIA Stock Performance

The company has a market cap of $4.45 trillion, a P/E ratio of 52.18, a P/E/G ratio of 1.37 and a beta of 2.12. The firm has a 50 day moving average price of $178.97 and a 200-day moving average price of $150.06. The company has a debt-to-equity ratio of 0.08, a quick ratio of 3.60 and a current ratio of 4.21.

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

NVIDIA Announces Dividend

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

Insider Activity

In related news, CFO Colette Kress sold 30,500 shares of the stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $176.40, for a total transaction of $5,380,200.00. Following the completion of the sale, the chief financial officer owned 2,883,402 shares in the company, valued at $508,632,112.80. This represents a 1.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Jen Hsun Huang sold 75,000 shares of the firm's stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $185.79, for a total value of $13,934,250.00. Following the completion of the sale, the chief executive officer owned 70,858,203 shares of the company's stock, valued at $13,164,745,535.37. This represents a 0.11% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 3,775,379 shares of company stock valued at $665,883,171. 4.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

A number of hedge funds have recently modified their holdings of NVDA. Kingstone Capital Partners Texas LLC raised its holdings in shares of NVIDIA by 267,959.7% in the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 382,373,765 shares of the computer hardware maker's stock worth $64,976,521,000 after buying an additional 382,231,120 shares in the last quarter. Norges Bank acquired a new position in shares of NVIDIA in the 2nd quarter worth approximately $51,386,863,000. Nuveen LLC acquired a new position in shares of NVIDIA in the 1st quarter worth approximately $15,089,414,000. Goldman Sachs Group Inc. increased its holdings in NVIDIA by 123.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 187,995,213 shares of the computer hardware maker's stock valued at $20,374,921,000 after purchasing an additional 103,889,872 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its holdings in NVIDIA by 204.6% during the 1st quarter. Assenagon Asset Management S.A. now owns 35,652,571 shares of the computer hardware maker's stock valued at $3,864,026,000 after purchasing an additional 23,948,733 shares in the last quarter. 65.27% of the stock is 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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