Nintendo (OTCMKTS:NTDOY) Shares Break Below 50 Day Moving Average on Disappointing Earnings

Key Points

• Nintendo shares fell below their 50-day moving average after trading as low as $12.86; they last traded at $13.10 versus a 50-day average of $13.17.
• Quarterly results missed analyst expectations: EPS was $0.10 versus $0.11 expected, and revenue was $2.83 billion versus $2.94 billion forecast.
• Business signals were mixed: first-half net profit rose 11% on stronger software sales, while Switch 2 sales reportedly declined 41% year over year in fiscal Q2.

Nintendo Co. (OTCMKTS:NTDOY - Get Free Report)'s share price passed below its 50-day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a 50-day moving average of $13.17 and traded as low as $12.86. Nintendo shares last traded at $13.10, with a volume of 1,615,288 shares changing hands.

The company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.01). The company had revenue of $2.83 billion during the quarter, compared to analysts' expectations of $2.94 billion. Nintendo had a return on equity of 16.31% and a net margin of 21.00%.

Nintendo News Summary

Here are the key news stories impacting Nintendo this week:

• Positive Sentiment: First-half net profit rose 11% year over year to 220.92 billion yen, supported by stronger software sales and expectations around the new Mario movie. Article: Nintendo's First-Half Profit Rose on Stronger Software Sales, New Mario Movie
• Positive Sentiment: A new The Legend of Zelda: Ocarina of Time remake launched for Switch 2, offering a potential boost to software sales, though launch performance was not yet reported. Article: Nintendo stock surges following Zelda: Ocarina of Time remake launch
• Neutral Sentiment: Star Fox joined Nintendo’s million-seller club, a sign of software demand, but the report did not provide additional sales or financial details. Article: Star Fox has joined Nintendo's Million-Seller Club
• Neutral Sentiment: Nintendo sold another 2.67 million Switch 2 units in fiscal Q2, providing a measure of ongoing demand, although other reports highlighted a year-over-year sales decline. Article: Nintendo Switch 2 sells another 2.67 million units in Q2 FY27
• Negative Sentiment: Switch 2 sales reportedly fell 41% year over year in fiscal Q2. Price increases and higher memory costs were cited as headwinds, raising concerns about hardware demand and margins. Article: Nintendo Switch 2 sales plunge 41% as price hikes and memory crunch bite
• Negative Sentiment: Quarterly EPS of $0.10 missed the $0.11 consensus, while revenue of $2.83 billion came in below the $2.94 billion estimate, adding to near-term pressure on investor expectations.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on NTDOY. Citigroup reaffirmed a "buy" rating on shares of Nintendo in a report on Friday, August 14th. BNP Paribas Exane assumed coverage on Nintendo in a research report on Tuesday, September 22nd. They set a "neutral" rating for the company. Finally, UBS Group lowered shares of Nintendo from a "neutral" rating to a "sell" rating in a report on Friday, September 25th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold".

Institutional Trading of Nintendo

Institutional investors have recently bought and sold shares of the stock. Thurston Springer Miller Herd & Titak Inc. increased its position in Nintendo by 47.6% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 3,100 shares of the company's stock valued at $32,000 after acquiring an additional 1,000 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings in Nintendo by 11.4% during the 1st quarter. PNC Financial Services Group Inc. now owns 9,987 shares of the company's stock valued at $143,000 after purchasing an additional 1,023 shares during the last quarter. GAMMA Investing LLC lifted its stake in Nintendo by 31.5% in the third quarter. GAMMA Investing LLC now owns 22,266 shares of the company's stock worth $279,000 after purchasing an additional 5,340 shares during the last quarter. O Brien Greene & Co. Inc boosted its position in shares of Nintendo by 4.8% during the third quarter. O Brien Greene & Co. Inc now owns 43,650 shares of the company's stock valued at $547,000 after buying an additional 2,000 shares during the period. Finally, Gagnon Securities LLC boosted its position in shares of Nintendo by 2.6% during the third quarter. Gagnon Securities LLC now owns 72,483 shares of the company's stock valued at $908,000 after buying an additional 1,808 shares during the period. 0.02% of the stock is currently owned by institutional investors.

Nintendo Trading Down 4.0%

The company has a 50-day simple moving average of $13.17 and a 200 day simple moving average of $12.94. The company has a market cap of $67.45 billion, a P/E ratio of 21.48 and a beta of 0.49.

About Nintendo

Nintendo Co, Ltd. is a Japanese entertainment company headquartered in Kyoto. Founded in 1889 as a maker of playing cards, it later expanded into video games and became a developer and publisher of interactive entertainment.

The company makes video game hardware, including the Nintendo Switch family of systems, and develops and publishes games for its platforms. Its well-known franchises include Super Mario, The Legend of Zelda, Animal Crossing and Splatoon. Nintendo also extends its intellectual property through mobile games, licensing and location-based attractions.

Nintendo serves customers around the world through its operations in Japan and international subsidiaries and distribution partners.

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