NVIDIA (NASDAQ:NVDA) Stock Price Down 4% – Should You Sell?

by · The Markets Daily

NVIDIA Corporation (NASDAQ:NVDA – Get Free Report) fell 4% during trading on Tuesday . The company traded as low as $152.83 and last traded at $151.67. 65,577,793 shares were traded during mid-day trading, a decline of 76% from the average session volume of 268,144,366 shares. The stock had previously closed at $157.99.

Wall Street Analyst Weigh In

NVDA has been the subject of several recent research reports. Cantor Fitzgerald reissued an “overweight” rating and set a $200.00 target price on shares of NVIDIA in a research note on Wednesday, April 16th. TD Cowen increased their price objective on NVIDIA from $140.00 to $175.00 and gave the company a “buy” rating in a research report on Thursday, May 29th. Oppenheimer reissued an “outperform” rating and set a $175.00 price objective on shares of NVIDIA in a research note on Monday, June 16th. Stifel Nicolaus set a $180.00 target price on NVIDIA in a report on Wednesday, March 19th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $170.00 target price (up from $160.00) on shares of NVIDIA in a report on Thursday, May 29th. One research analyst has rated the stock with a sell rating, four have given a hold rating, thirty-four have issued a buy rating and three have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $175.78.

Check Out Our Latest Research Report on NVIDIA

NVIDIA Stock Performance

The company has a quick ratio of 2.96, a current ratio of 3.39 and a debt-to-equity ratio of 0.10. The stock has a market cap of $3.76 trillion, a P/E ratio of 49.79, a price-to-earnings-growth ratio of 1.40 and a beta of 2.12. The firm’s 50-day moving average is $132.18 and its two-hundred day moving average is $127.06.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results on Wednesday, May 28th. The computer hardware maker reported $0.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.87 by ($0.06). NVIDIA had a return on equity of 105.09% and a net margin of 51.69%. The company had revenue of $44.06 billion for the quarter, compared to the consensus estimate of $43.09 billion. During the same quarter last year, the company posted $0.61 EPS. The business’s revenue was up 69.2% compared to the same quarter last year. As a group, research analysts expect that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 3rd. Stockholders of record on Wednesday, June 11th will be given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.03%. The ex-dividend date is Wednesday, June 11th. NVIDIA’s dividend payout ratio is 1.29%.

Insider Activity

In other NVIDIA news, CEO Jen Hsun Huang sold 75,000 shares of the company’s stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $152.54, for a total transaction of $11,440,500.00. Following the completion of the sale, the chief executive officer directly owned 75,548,225 shares in the company, valued at $11,524,126,241.50. This represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Ajay K. Puri sold 168,195 shares of NVIDIA stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $152.64, for a total value of $25,673,284.80. Following the completion of the transaction, the executive vice president owned 4,018,547 shares in the company, valued at $613,391,014.08. The trade was a 4.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 3,792,267 shares of company stock valued at $544,823,117 over the last three months. Corporate insiders own 4.17% of the company’s stock.

Institutional Trading of NVIDIA

Hedge funds have recently added to or reduced their stakes in the business. Wealth Group Ltd. boosted its position in shares of NVIDIA by 1.8% in the fourth quarter. Wealth Group Ltd. now owns 5,702 shares of the computer hardware maker’s stock valued at $766,000 after acquiring an additional 100 shares during the period. Tallon Kerry Patrick acquired a new position in NVIDIA during the 4th quarter valued at $972,000. Capital & Planning LLC boosted its holdings in NVIDIA by 16.9% in the 4th quarter. Capital & Planning LLC now owns 7,604 shares of the computer hardware maker’s stock valued at $1,021,000 after purchasing an additional 1,099 shares during the period. Ironwood Wealth Management LLC. boosted its holdings in NVIDIA by 1.6% in the 4th quarter. Ironwood Wealth Management LLC. now owns 6,483 shares of the computer hardware maker’s stock valued at $871,000 after purchasing an additional 104 shares during the period. Finally, Brighton Jones LLC grew its position in NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after purchasing an additional 35,815 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.

About NVIDIA

(Get Free Report)

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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