NVIDIA (NASDAQ:NVDA) Shares Gap Down – Here’s Why

by · The Cerbat Gem

NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $182.55, but opened at $174.91. NVIDIA shares last traded at $171.24, with a volume of 74,755,147 shares.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on NVDA. Citic Securities lifted their price objective on shares of NVIDIA from $237.00 to $242.00 and gave the stock a “buy” rating in a research report on Thursday, November 20th. Evercore ISI set a $352.00 price target on NVIDIA and gave the company an “outperform” rating in a research report on Thursday, November 20th. Deutsche Bank Aktiengesellschaft increased their price objective on NVIDIA from $180.00 to $215.00 and gave the stock a “hold” rating in a research note on Thursday, November 20th. Truist Financial lifted their target price on NVIDIA from $228.00 to $255.00 and gave the company a “buy” rating in a research note on Thursday, November 20th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $240.00 target price (up from $210.00) on shares of NVIDIA in a research report on Friday, October 31st. Five research analysts have rated the stock with a Strong Buy rating, forty-six have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $258.19.

Read Our Latest Report on NVDA

NVIDIA Price Performance

The company has a debt-to-equity ratio of 0.08, a current ratio of 4.21 and a quick ratio of 3.60. The stock’s 50 day moving average price is $186.82 and its two-hundred day moving average price is $169.74. The firm has a market capitalization of $4.38 trillion, a price-to-earnings ratio of 51.36, a PEG ratio of 1.49 and a beta of 2.11.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, November 19th. The computer hardware maker reported $1.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.07. The business had revenue of $57.01 billion for the quarter, compared to analyst estimates of $54.66 billion. NVIDIA had a net margin of 52.41% and a return on equity of 101.74%. NVIDIA’s revenue was up 62.5% compared to the same quarter last year. During the same period last year, the business posted $0.81 EPS. NVIDIA has set its Q4 2026 guidance at EPS. On average, equities research analysts anticipate that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 26th. Investors of record on Thursday, December 4th will be given a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. The ex-dividend date of this dividend is Thursday, December 4th. NVIDIA’s payout ratio is currently 0.99%.

Insider Buying and Selling at NVIDIA

In related news, CFO Colette Kress sold 27,640 shares of the company’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $208.33, for a total transaction of $5,758,241.20. Following the completion of the transaction, the chief financial officer directly owned 2,828,122 shares in the company, valued at $589,182,656.26. This represents a 0.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Jen Hsun Huang sold 25,000 shares of the stock in a transaction on Wednesday, October 29th. The shares were sold at an average price of $207.91, for a total transaction of $5,197,750.00. Following the completion of the sale, the chief executive officer directly owned 69,733,203 shares of the company’s stock, valued at approximately $14,498,230,235.73. This trade represents a 0.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,252,203 shares of company stock valued at $583,255,504 in the last 90 days. 4.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On NVIDIA

Several hedge funds have recently made changes to their positions in NVDA. Strategic Advocates LLC raised its holdings in NVIDIA by 2.6% in the 3rd quarter. Strategic Advocates LLC now owns 92,356 shares of the computer hardware maker’s stock valued at $17,232,000 after acquiring an additional 2,309 shares in the last quarter. Lantern Wealth Advisors LLC raised its stake in shares of NVIDIA by 21.4% in the third quarter. Lantern Wealth Advisors LLC now owns 14,682 shares of the computer hardware maker’s stock valued at $2,739,000 after purchasing an additional 2,590 shares in the last quarter. Vermillion & White Wealth Management Group LLC raised its stake in shares of NVIDIA by 3.7% in the third quarter. Vermillion & White Wealth Management Group LLC now owns 2,107 shares of the computer hardware maker’s stock valued at $393,000 after purchasing an additional 75 shares in the last quarter. KERR FINANCIAL PLANNING Corp bought a new position in NVIDIA in the third quarter worth $3,939,000. Finally, LWM Advisory Services LLC boosted its stake in NVIDIA by 1.2% during the third quarter. LWM Advisory Services LLC now owns 26,296 shares of the computer hardware maker’s stock worth $4,902,000 after buying an additional 302 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

(Get Free Report)

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.

See Also