NVIDIA (NASDAQ:NVDA) Stock Price Down 4.5% - Here's Why

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) experienced a 4.5% decline in its share price during mid-day trading on Thursday. The stock reached a low of $118.62 and was last seen at $118.19. Trading volume was approximately 126,747,916 shares, reflecting a significant decrease of 54% from its average daily volume of 277,408,250 shares. Prior to this drop, the stock closed at $123.70.

Wall Street Analysts Forecast Growth

Despite the drop in stock price, NVIDIA has recently received favorable evaluations from various Wall Street analysts. For instance, Needham & Company LLC raised their price target for NVIDIA shares from $145.00 to $160.00, assigning a "buy" rating on November 21st. Similar positive adjustments came from Citigroup, which increased their target from $170.00 to $175.00, while also giving the stock a "buy" rating. Wedbush followed suit by lifting their price target from $160.00 to $175.00, presenting an "outperform" rating. Additionally, Wells Fargo & Company and Melius Research also escalated their price targets to $185.00, both maintaining a “buy” rating. Currently, four analysts have a hold rating on the stock, while thirty-eight have issued a buy rating, and two provided a strong buy rating. Data from MarketBeat.com indicates that NVIDIA has a consensus rating of "Moderate Buy" with an average price target of $166.23.

NVIDIA Stock Performance

Financial indicators show that NVIDIA maintains a current ratio of 4.10, a quick ratio of 3.64, and a debt-to-equity ratio of 0.13. The company boasts a market capitalization of $2.94 trillion, with a PE ratio of 47.25 and a PEG ratio of 2.23. The stock's moving averages include a 50-day average at $136.58 and a 200-day average at $129.31.

NVIDIA recently reported its quarterly earnings on November 20th, showcasing earnings per share (EPS) of $0.81, exceeding the consensus estimate of $0.69 by $0.12. The company’s revenue for the quarter was $35.08 billion, surpassing the expected $33.15 billion, and indicating a notable year-over-year increase of 93.6%. Last year, during the same period, NVIDIA recorded an EPS of $0.38. Analysts forecast an EPS of 2.77 for the current year.

NVIDIA Dividend Announcement

In a recent announcement, NVIDIA declared a quarterly dividend, which was paid to eligible shareholders on December 27th. Those on record as of December 5th received a dividend of $0.01 per share, translating to an annualized dividend of $0.04, resulting in a dividend yield of 0.03%. The ex-dividend date was also December 5th, and NVIDIA’s payout ratio stands at 1.57%.

Insiders Place Their Bets

In other news, NVIDIA's Executive Vice President, Ajay K. Puri, sold 36,462 shares of the stock on January 6th for an average price of $151.10, amounting to a transaction of approximately $5.51 million. Following this sale, he still holds around 3,902,888 shares valued at about $589.73 million, marking a 0.93% decrease in his ownership. Furthermore, director Tench Coxe sold 1,000,000 shares on December 16th at an average price of $131.26, bringing his total transaction value to about $131.26 million and reducing his stock ownership by 3.37%. Insiders have sold a total of over 1.1 million shares in the past three months, cumulatively valued at $146.51 million; currently, insiders control 4.23% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Various institutional investors and hedge funds have recently altered their positions in NVIDIA. For example, Ironwood Wealth Management LLC increased their stake by an impressive 896.9% during Q2, acquiring 6,330 shares. Similarly, Financial Guidance Group Inc. raised their stake by 900% to own 3,600 shares. Tortoise Investment Management LLC boosted its holdings by 858.9%, while Generate Investment Management Ltd. expanded their stake by 945%. Lastly, Allegheny Financial Group LTD made its debut with shares valued at approximately $835,000. Approximately 65.27% of NVIDIA’s stock is held by institutional investors and hedge funds.

About NVIDIA

NVIDIA Corporation specializes in providing graphics and compute solutions, including networking capabilities, across various regions such as the United States, Taiwan, China, and Hong Kong. Its graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service as well as related infrastructure, and gaming platform solutions. NVIDIA also provides Quadro/NVIDIA RTX GPUs for enterprise graphics, virtual GPU (vGPU) software for cloud-based applications, automotive platforms for infotainment systems, as well as Omniverse software for creating metaverse and 3D internet applications.

NVIDIA, Stock, Finance