Stocks

NVIDIA (NASDAQ:NVDA) Trading Down 4.2% - What's Next?

Published November 27, 2024

NVIDIA Co. (NASDAQ:NVDA) saw its stock price drop by 4.2% during trading on Tuesday. The stock reached a low of $135.82 before last trading at $136.02. During the day, approximately 344,941,875 shares changed hands, marking a 13% decline compared to the average daily volume of 396,640,844 shares. Previously, the stock closed at $141.95.

Wall Street Analyst Weigh In

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Various analysts have provided their insights on NVIDIA's shares. Citigroup raised their price target from $170.00 to $175.00, maintaining a "buy" rating on November 21st. Melius Research also increased its target from $165.00 to $185.00 and offered a "buy" rating on November 11th. Benchmark reported an increase in their price expectation from $170.00 to $190.00, while Wedbush adjusted their objective from $160.00 to $175.00, both maintaining their "buy" ratings. Loop Capital echoed this sentiment with a "buy" rating and a target of $175.00 on November 20th. Overall, four analysts have rated the stock as a hold, whereas thirty-nine have given it a buy rating, and one has assigned a strong buy rating. According to MarketBeat, NVIDIA’s consensus rating is a "Moderate Buy" with a price target of $164.15.

Read Our Latest Stock Analysis on NVDA

NVIDIA Stock Performance

Should Investors Chase Tech Gains Into Year-End?

NVIDIA's stock has a 50-day moving average price of $134.39, and its 200-day moving average price stands at $122.84. The company shows a debt-to-equity ratio of 0.13, a quick ratio of 3.64, and a current ratio of 4.10. With a market cap of $3.34 trillion, its price-to-earnings (PE) ratio is 53.53, and the price/earnings to growth (PEG) ratio is 2.60. The stock has a beta of 1.66, indicating above-average volatility.

NVIDIA recently announced its quarterly earnings on November 20th. The company reported earnings per share (EPS) of $0.81 for the quarter, surpassing analysts' expectations of $0.69 by $0.12. NVIDIA's revenue for the quarter was $35.08 billion, exceeding the anticipated $33.15 billion. The company achieved a net margin of 55.69% and a return on equity of 114.83%. Notably, quarterly revenue rose by 93.6% compared to the previous year. Last year's quarter reflected an EPS of $0.38, fueling optimism among analysts, who predict an EPS of 2.73 for the current year.

NVIDIA Announces Dividend

Volatility in Semis? 3 Stable Alternatives to NVIDIA and SMCI

NVIDIA also recently declared a quarterly dividend that will be disbursed on December 27th. Shareholders on record as of December 5th will receive a dividend of $0.01 per share, making the annualized dividend $0.04 with a yield of 0.03%. Presently, NVIDIA's payout ratio stands at 1.57%.

Additionally, the board has authorized a significant share buyback program, permitting NVIDIA to repurchase up to $50 billion of its shares. This move suggests that the board believes NVIDIA's stock is undervalued, with the authorization allowing the buyback of approximately 1.6% of its shares in the open market.

Insider Buying and Selling

In recent news concerning insider trading, Director Tench Coxe sold 1,000,000 shares on September 19th at an average price of $119.27, totaling $119,270,000. After the sale, Coxe holds 5,852,480 shares, valued at about $698 million, resulting in a 14.59% decrease in his stock position. The transaction details can be found in a filing with the Securities and Exchange Commission. Similarly, insider Donald F. Robertson, Jr. sold 4,500 shares at an average price of $116.51, amounting to $524,295. He now retains 492,409 shares, translating to a valuation of approximately $57 million, marking a 0.91% decrease in ownership. Insiders have sold a total of 2,156,270 shares in the past quarter, worth $254 million, while company insiders currently own 4.23% of NVIDIA's stock.

Institutional Investors Weigh In On NVIDIA

Several hedge funds have recently altered their stakes in NVIDIA. Lowe Wealth Advisors LLC purchased a new stake valued at $25,000 in the second quarter. DHJJ Financial Advisors Ltd. significantly raised its holdings by 1,900.0% in the same quarter, owning 200 shares worth $25,000 after adding 190 more shares. CGC Financial Services LLC and Koesten Hirschmann & Crabtree INC also acquired new stakes of approximately $26,000 and $27,000 respectively. Overall, institutional investors and hedge funds now own 65.27% of NVIDIA's stock.

About NVIDIA

NVIDIA Corporation is a leading company in providing graphics, computing, and networking solutions globally. Its graphics segment offers various products such as GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service, Quadro/NVIDIA RTX GPUs for enterprise workstations, virtual GPU software for cloud computing, automotive platforms for infotainment, and software for building 3D internet applications.

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