NVIDIA (NASDAQ:NVDA) Trading Down 14.7% - Here's Why

NVIDIA Co. (NASDAQ:NVDA - Get Free Report) shares were down 14.7% on Monday . The stock traded as low as $123.02 and last traded at $121.62. Approximately 284,055,362 shares changed hands during mid-day trading, an increase of 27% from the average daily volume of 222,855,219 shares. The stock had previously closed at $142.62.

Analyst Upgrades and Downgrades

A number of research firms recently commented on NVDA. UBS Group upped their price objective on shares of NVIDIA from $150.00 to $185.00 and gave the company a "buy" rating in a research report on Monday, November 11th. Evercore ISI raised their price target on NVIDIA from $189.00 to $190.00 and gave the stock an "outperform" rating in a research report on Thursday, November 21st. Rosenblatt Securities reissued a "buy" rating and set a $220.00 target price on shares of NVIDIA in a research note on Wednesday, January 8th. Wedbush increased their price objective on shares of NVIDIA from $160.00 to $175.00 and gave the stock an "outperform" rating in a research report on Thursday, November 21st. Finally, Benchmark reiterated a "buy" rating and set a $190.00 price objective on shares of NVIDIA in a report on Tuesday, January 7th. Four research analysts have rated the stock with a hold rating, thirty-nine have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $165.23.

NVIDIA Stock Down 16.9 %

The stock has a 50 day moving average price of $138.72 and a 200 day moving average price of $129.52. The company has a current ratio of 4.10, a quick ratio of 3.64 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $2.90 trillion, a P/E ratio of 46.63, a PEG ratio of 2.65 and a beta of 1.64.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, November 20th. The computer hardware maker reported $0.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.69 by $0.12. The firm had revenue of $35.08 billion during the quarter, compared to the consensus estimate of $33.15 billion. NVIDIA had a net margin of 55.69% and a return on equity of 114.83%. The company's revenue for the quarter was up 93.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.38 earnings per share. On average, research analysts anticipate that NVIDIA Co. will post 2.78 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, December 27th. Shareholders of record on Thursday, December 5th were issued a dividend of $0.01 per share. The ex-dividend date was Thursday, December 5th. This represents a $0.04 annualized dividend and a yield of 0.03%. NVIDIA's payout ratio is 1.57%.

Insider Buying and Selling

In other NVIDIA news, insider Donald F. Robertson, Jr. sold 4,500 shares of NVIDIA stock in a transaction on Friday, December 13th. The shares were sold at an average price of $135.28, for a total value of $608,760.00. Following the completion of the sale, the insider now directly owns 480,899 shares of the company's stock, valued at approximately $65,056,016.72. The trade was a 0.93 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Tench Coxe sold 1,000,000 shares of the firm's stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $131.26, for a total value of $131,260,000.00. Following the completion of the sale, the director now owns 28,671,360 shares of the company's stock, valued at approximately $3,763,402,713.60. This represents a 3.37 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,108,348 shares of company stock valued at $146,506,958 over the last quarter. Insiders own 4.23% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Consolidated Portfolio Review Corp lifted its position in shares of NVIDIA by 39.0% during the fourth quarter. Consolidated Portfolio Review Corp now owns 50,528 shares of the computer hardware maker's stock valued at $6,785,000 after purchasing an additional 14,177 shares in the last quarter. Measured Wealth Private Client Group LLC boosted its holdings in shares of NVIDIA by 3.3% in the 4th quarter. Measured Wealth Private Client Group LLC now owns 36,239 shares of the computer hardware maker's stock worth $4,867,000 after buying an additional 1,167 shares during the last quarter. Eagle Ridge Investment Management purchased a new stake in NVIDIA during the fourth quarter worth about $217,000. Citrine Capital LLC bought a new stake in NVIDIA in the fourth quarter worth about $23,850,000. Finally, Oakworth Capital Inc. boosted its stake in NVIDIA by 1.1% in the fourth quarter. Oakworth Capital Inc. now owns 76,004 shares of the computer hardware maker's stock valued at $10,207,000 after acquiring an additional 821 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

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.