NVIDIA (NASDAQ:NVDA) Stock Price Down 1.3% - Here's Why

NVIDIA Co. (NASDAQ:NVDA - Get Free Report) shares dropped 1.3% during trading on Wednesday . The stock traded as low as $136.81 and last traded at $139.37. Approximately 67,277,398 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 410,137,250 shares. The stock had previously closed at $141.25.

Analysts Set New Price Targets

NVDA has been the subject of a number of analyst reports. UBS Group reaffirmed a "buy" rating and issued a $150.00 price target on shares of NVIDIA in a report on Tuesday, October 8th. Benchmark reaffirmed a "buy" rating and set a $170.00 price objective on shares of NVIDIA in a report on Thursday, August 29th. Needham & Company LLC increased their price target on shares of NVIDIA from $120.00 to $145.00 and gave the company a "buy" rating in a research report on Thursday, August 29th. William Blair began coverage on NVIDIA in a research note on Wednesday, September 18th. They issued an "outperform" rating for the company. Finally, Robert W. Baird upped their price target on shares of NVIDIA from $120.00 to $150.00 and gave the company an "outperform" rating in a report on Thursday, August 29th. Five analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, NVIDIA presently has a consensus rating of "Moderate Buy" and a consensus price target of $143.07.

NVIDIA Price Performance

The firm has a market cap of $3.42 trillion, a PE ratio of 65.42, a P/E/G ratio of 1.50 and a beta of 1.67. The firm's fifty day simple moving average is $124.95 and its two-hundred day simple moving average is $115.35. The company has a quick ratio of 3.79, a current ratio of 4.27 and a debt-to-equity ratio of 0.15.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, August 28th. The computer hardware maker reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.04. The company had revenue of $30.04 billion for the quarter, compared to the consensus estimate of $28.74 billion. NVIDIA had a return on equity of 113.50% and a net margin of 55.04%. The firm's quarterly revenue was up 122.4% on a year-over-year basis. During the same quarter last year, the company earned $0.25 EPS. As a group, research analysts expect that NVIDIA Co. will post 2.65 EPS for the current year.

NVIDIA Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 3rd. Investors of record on Thursday, September 12th were given a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 0.03%. The ex-dividend date of this dividend was Thursday, September 12th. NVIDIA's dividend payout ratio is presently 1.88%.

NVIDIA announced that its Board of Directors has authorized a stock buyback program on Wednesday, August 28th that authorizes the company to buyback $50.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 1.6% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at NVIDIA

In related news, Director Mark A. Stevens sold 155,000 shares of the firm's stock in a transaction dated Wednesday, October 9th. The shares were sold at an average price of $132.27, for a total value of $20,501,850.00. Following the transaction, the director now owns 8,100,117 shares of the company's stock, valued at $1,071,402,475.59. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In other NVIDIA news, Director Mark A. Stevens sold 155,000 shares of the firm's stock in a transaction dated Wednesday, October 9th. The shares were sold at an average price of $132.27, for a total transaction of $20,501,850.00. Following the transaction, the director now owns 8,100,117 shares of the company's stock, valued at approximately $1,071,402,475.59. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Colette Kress sold 66,670 shares of the company's stock in a transaction on Friday, September 20th. The stock was sold at an average price of $116.59, for a total value of $7,773,055.30. Following the sale, the chief financial officer now owns 4,954,214 shares of the company's stock, valued at approximately $577,611,810.26. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,636,270 shares of company stock worth $305,367,927. 4.23% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NVIDIA

Several institutional investors and hedge funds have recently bought and sold shares of NVDA. Legal & General Group Plc raised its holdings in shares of NVIDIA by 884.0% in the second quarter. Legal & General Group Plc now owns 213,127,959 shares of the computer hardware maker's stock worth $26,329,751,000 after buying an additional 191,469,114 shares during the last quarter. Bank of New York Mellon Corp raised its position in NVIDIA by 854.1% during the 2nd quarter. Bank of New York Mellon Corp now owns 182,622,629 shares of the computer hardware maker's stock worth $22,561,200,000 after buying an additional 163,482,580 shares during the last quarter. Ameriprise Financial Inc. lifted its stake in NVIDIA by 870.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 102,422,225 shares of the computer hardware maker's stock valued at $12,658,922,000 after acquiring an additional 91,867,031 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of NVIDIA by 1,123.2% in the second quarter. Dimensional Fund Advisors LP now owns 92,039,713 shares of the computer hardware maker's stock worth $11,371,255,000 after acquiring an additional 84,515,429 shares during the period. Finally, Massachusetts Financial Services Co. MA raised its holdings in shares of NVIDIA by 808.6% during the second quarter. Massachusetts Financial Services Co. MA now owns 82,689,605 shares of the computer hardware maker's stock worth $10,215,474,000 after purchasing an additional 73,589,208 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

About NVIDIA

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.