NVIDIA (NASDAQ:NVDA) Shares Down 4.5% - What's Next?

NVIDIA Co. (NASDAQ:NVDA - Get Free Report) was down 4.5% during mid-day trading on Thursday . The company traded as low as $132.37 and last traded at $133.06. Approximately 95,377,465 shares changed hands during trading, a decline of 77% from the average daily volume of 409,111,781 shares. The stock had previously closed at $139.34.

Analysts Set New Price Targets

NVDA has been the subject of a number of research reports. New Street Research upgraded NVIDIA from a "neutral" rating to a "buy" rating and set a $120.00 target price for the company in a research note on Tuesday, August 6th. UBS Group reaffirmed a "buy" rating and set a $150.00 price target on shares of NVIDIA in a research note on Tuesday, October 8th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $175.00 target price on shares of NVIDIA in a research note on Tuesday, October 8th. Truist Financial upped their price target on NVIDIA from $140.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, August 27th. Finally, William Blair began coverage on shares of NVIDIA in a report on Wednesday, September 18th. They set an "outperform" rating on the stock. Five equities research analysts have rated the stock with a hold rating, thirty-seven have assigned a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat, NVIDIA currently has an average rating of "Moderate Buy" and a consensus price target of $143.07.

NVIDIA Stock Down 4.6 %

The stock has a 50-day moving average of $124.95 and a 200 day moving average of $115.35. The company has a debt-to-equity ratio of 0.15, a current ratio of 4.27 and a quick ratio of 3.79. The company has a market cap of $3.26 trillion, a P/E ratio of 62.47, a PEG ratio of 1.50 and a beta of 1.67.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly 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 analyst estimates of $28.74 billion. NVIDIA had a net margin of 55.04% and a return on equity of 113.50%. The firm's revenue was up 122.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.25 EPS. Research analysts anticipate that NVIDIA Co. will post 2.65 earnings per share for the current year.

NVIDIA Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 3rd. Stockholders of record on Thursday, September 12th were given a dividend of $0.01 per share. The ex-dividend date was Thursday, September 12th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.03%. NVIDIA's dividend payout ratio (DPR) is 1.88%.

NVIDIA declared that its board has initiated a stock repurchase plan on Wednesday, August 28th that permits the company to repurchase $50.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to buy up to 1.6% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at NVIDIA

In other NVIDIA news, insider Donald F. Robertson, Jr. sold 4,500 shares of NVIDIA stock in a transaction on Friday, September 20th. The shares were sold at an average price of $116.51, for a total transaction of $524,295.00. Following the transaction, the insider now directly owns 492,409 shares of the company's stock, valued at $57,370,572.59. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, Director Mark A. Stevens sold 40,000 shares of the stock in a transaction dated Friday, September 27th. The shares were sold at an average price of $121.01, for a total transaction of $4,840,400.00. Following the completion of the transaction, the director now owns 8,380,117 shares in the company, valued at approximately $1,014,077,958.17. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Donald F. Robertson, Jr. sold 4,500 shares of the business's stock in a transaction dated Friday, September 20th. The shares were sold at an average price of $116.51, for a total transaction of $524,295.00. Following the completion of the transaction, the insider now owns 492,409 shares in the company, valued at approximately $57,370,572.59. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,516,270 shares of company stock valued at $291,803,127. Corporate insiders own 4.23% of the company's stock.

Institutional Trading of NVIDIA

Hedge funds have recently made changes to their positions in the company. University of Texas Texas AM Investment Management Co. raised its position in shares of NVIDIA by 897.5% in the second quarter. University of Texas Texas AM Investment Management Co. now owns 119,110 shares of the computer hardware maker's stock valued at $14,715,000 after purchasing an additional 107,169 shares during the period. Truepoint Inc. grew its position in shares of NVIDIA by 914.1% during the 2nd quarter. Truepoint Inc. now owns 12,990 shares of the computer hardware maker's stock valued at $1,605,000 after purchasing an additional 11,709 shares in the last quarter. Westwood Holdings Group Inc. increased its holdings in shares of NVIDIA by 683.9% in the second quarter. Westwood Holdings Group Inc. now owns 238,829 shares of the computer hardware maker's stock worth $29,505,000 after purchasing an additional 208,362 shares during the period. Legal & General Group Plc raised its position 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 in the last quarter. Finally, Lombard Odier Asset Management Europe Ltd boosted its stake in NVIDIA by 1,106.0% during the second quarter. Lombard Odier Asset Management Europe Ltd now owns 532,285 shares of the computer hardware maker's stock valued at $65,758,000 after buying an additional 488,148 shares during the period. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Company Profile

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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