NVIDIA (NASDAQ:NVDA) Trading Down 0.2% – Should You Sell?

NVIDIA Co. (NASDAQ:NVDA)’s stock price dropped 0.2% during mid-day trading on Thursday . The stock traded as low as $143.95 and last traded at $144.78. Approximately 54,058,367 shares were traded during trading, a decline of 86% from the average daily volume of 389,890,875 shares. The stock had previously closed at $145.13.

Analyst Ratings Changes

Several research firms have weighed in on NVDA. TD Cowen raised their target price on NVIDIA from $165.00 to $175.00 and gave the company a “buy” rating in a report on Thursday, November 21st. Craig Hallum raised their price target on NVIDIA from $125.00 to $165.00 and gave the company a “buy” rating in a research report on Thursday, August 29th. Raymond James raised their price target on NVIDIA from $140.00 to $170.00 and gave the company a “strong-buy” rating in a research report on Thursday, November 14th. Bank of America reissued a “buy” rating and set a $190.00 target price on shares of NVIDIA in a research report on Thursday, November 21st. Finally, Morgan Stanley lifted their target price on NVIDIA from $150.00 to $160.00 and gave the stock an “overweight” rating in a research report on Monday, November 11th. Four investment analysts have rated the stock with a hold rating, thirty-nine have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, NVIDIA currently has a consensus rating of “Moderate Buy” and an average target price of $164.15.

NVIDIA Stock Down 1.8 %

The firm’s 50-day simple moving average is $137.74 and its 200 day simple moving average is $125.04. The company has a debt-to-equity ratio of 0.13, a quick ratio of 3.64 and a current ratio of 4.10. The stock has a market capitalization of $3.49 trillion, a P/E ratio of 56.06, a PEG ratio of 2.62 and a beta of 1.63.

NVIDIA (NASDAQ:NVDA) last issued its earnings results on Wednesday, November 20th. The computer hardware maker reported $0.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.69 by $0.12. The company had revenue of $35.08 billion for the quarter, compared to analysts’ expectations of $33.15 billion. NVIDIA had a net margin of 55.69% and a return on equity of 114.83%. NVIDIA’s quarterly revenue was up 93.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.38 EPS. As a group, research analysts expect that NVIDIA Co. will post 2.76 EPS for the current year.

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Shareholders of record on Thursday, December 5th will be given a dividend of $0.01 per share. The ex-dividend date of this dividend is Thursday, December 5th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.03%. NVIDIA’s payout ratio is presently 1.57%.

NVIDIA declared that its Board of Directors has initiated a share buyback program on Wednesday, August 28th that allows the company to buyback $50.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to buy up to 1.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other NVIDIA news, Director Tench Coxe sold 1,000,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 19th. The shares were sold at an average price of $119.27, for a total value of $119,270,000.00. Following the sale, the director now owns 5,852,480 shares in the company, valued at $698,025,289.60. This trade represents a 14.59 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Jen Hsun Huang sold 120,000 shares of the firm’s stock in a transaction that occurred on Monday, September 9th. The shares were sold at an average price of $105.33, for a total transaction of $12,639,600.00. Following the completion of the sale, the chief executive officer now owns 75,895,836 shares in the company, valued at $7,994,108,405.88. This represents a 0.16 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,796,986 shares of company stock worth $214,418,399 in the last quarter. Corporate insiders own 4.23% of the company’s stock.

Institutional Trading of NVIDIA

A number of hedge funds have recently added to or reduced their stakes in the stock. Oddo BHF Asset Management Sas acquired a new stake in NVIDIA in the third quarter valued at approximately $75,723,000. Boulder Wealth Advisors LLC acquired a new stake in NVIDIA in the third quarter valued at approximately $681,000. Oriental Harbor Investment Fund bought a new position in shares of NVIDIA during the third quarter valued at $252,876,000. Capasso Planning Partners LLC raised its stake in shares of NVIDIA by 2.0% during the third quarter. Capasso Planning Partners LLC now owns 6,277 shares of the computer hardware maker’s stock valued at $762,000 after acquiring an additional 122 shares during the last quarter. Finally, Inspire Trust Co. N.A. raised its stake in shares of NVIDIA by 6.2% during the third quarter. Inspire Trust Co. N.A. now owns 34,893 shares of the computer hardware maker’s stock valued at $4,237,000 after acquiring an additional 2,033 shares during the last quarter. Institutional investors and hedge funds 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.