Stocks

NVIDIA (NASDAQ:NVDA) Shares Down 4.2% - Here's Why

Published November 27, 2024

NVIDIA Co. (NASDAQ:NVDA) experienced a decline of 4.2% in its stock price during trading on Tuesday. The stock reached a low of $135.82 and was last seen at $136.02. In mid-day trading, approximately 344,941,875 shares changed hands, showing a 13% drop from the average daily volume of 396,640,844 shares. The stock had closed previously at $141.95.

Insights from Wall Street Analysts

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Several analysts have provided their insights on NVIDIA shares. Citigroup raised their price target from $170.00 to $175.00, maintaining a "buy" rating on November 21st. Melius Research also increased their target from $165.00 to $185.00 with a "buy" rating noted on November 11th. Benchmark adjusted their price objective from $170.00 to $190.00 on November 21st, suggesting a "buy" rating. Likewise, Wedbush increased their target from $160.00 to $175.00, giving an "outperform" rating on November 21st. Finally, Loop Capital reiterated a "buy" rating and assigned a $175.00 price objective on November 20th. Notably, four analysts have given the stock a hold rating, while thirty-nine have assigned a buy rating, with one strong buy rating recorded. According to data from MarketBeat, NVIDIA holds a consensus rating of "Moderate Buy" and a price target of $164.15.

Read Our Latest Stock Analysis on NVDA

NVIDIA's Stock Performance Overview

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The company's 50-day moving average price stands at $134.39, while its 200-day moving average is $122.84. NVIDIA's debt-to-equity ratio is 0.13, with a quick ratio of 3.64 and a current ratio of 4.10. The company boasts a market capitalization of $3.34 trillion, a PE ratio of 53.53, a PEG ratio of 2.60, and a beta of 1.66.

NVIDIA recently reported quarterly earnings on November 20th, showing an EPS of $0.81, which surpassed analysts' expectations of $0.69 by $0.12. The company's revenue during this quarter was $35.08 billion, exceeding analysts' forecast of $33.15 billion. NVIDIA achieved a net margin of 55.69% and a remarkable return on equity of 114.83%. This quarterly revenue represented a year-over-year increase of 93.6%. Last year's earnings for the same quarter were $0.38 EPS. Analysts predict NVIDIA will achieve an EPS of 2.73 for the current year.

NVIDIA Dividend Announcement

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The company recently announced a quarterly dividend, set to be paid on December 27th. Shareholders on record by December 5th will receive a dividend of $0.01 per share. The ex-dividend date is also December 5th, translating to an annualized dividend of $0.04 and a yield of 0.03%. Currently, NVIDIA's payout ratio stands at 1.57%.

Additionally, NVIDIA's board approved a $50.00 billion share buyback program on August 28th, allowing the company to buy back up to 1.6% of its shares on the open market. Such buyback initiatives generally indicate the board's belief that the stock is undervalued.

Insider Trading Activities

In related news, Director Tench Coxe sold 1,000,000 shares on September 19th at an average price of $119.27, totaling $119,270,000. After this sale, he holds 5,852,480 shares, valued at approximately $698 million, marking a 14.59% decrease in his holdings. Insider Donald F. Robertson, Jr. sold 4,500 shares on September 20th at an average price of $116.51, bringing in $524,295. After the sale, Robertson owns 492,409 shares, worth about $57 million, reflecting a minor 0.91% decrease in ownership. In the past quarter, insiders sold 2,156,270 shares totaling $254,784,327. Company insiders currently own 4.23% of NVIDIA's stock.

Institutional Investor Activity

Several hedge funds have recently adjusted their stakes in NVIDIA. Lowe Wealth Advisors LLC made a new investment valued at $25,000. DHJJ Financial Advisors Ltd. boosted its holdings by 1,900.0%, now owning 200 shares worth $25,000 after adding 190 shares. CGC Financial Services LLC also acquired a new stake in NVIDIA valued at $26,000. Other new investments include Koesten Hirschmann & Crabtree INC., at $27,000, and Quest Partners LLC, also at $27,000. Institutional investors and hedge funds now own approximately 65.27% of NVIDIA's stock.

About NVIDIA

NVIDIA Corporation is known for providing comprehensive graphics, compute, and networking solutions across the globe, including the United States, Taiwan, China, Hong Kong, and beyond. The Graphics segment includes offerings such as GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service, and virtual GPU (vGPU) solutions for cloud computing. NVIDIA also develops automotive platforms for infotainment systems and Omniverse software for creating and managing metaverse and 3D internet applications.

Should you invest $1,000 in NVIDIA right now?

Before making any investment decisions regarding NVIDIA, consider current market recommendations and trends. Various analysts are highlighting other stocks that may present better investment opportunities compared to NVIDIA, which also has a "Moderate Buy" rating among experts.

Explore these recommended alternatives before making a decision on your investments.

NVIDIA, stocks, dividend