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

NVIDIA Co. (NASDAQ:NVDA)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $142.62, but opened at $124.80. NVIDIA shares last traded at $124.36, with a volume of 214,309,865 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on NVDA shares. Truist Financial upped their price target on NVIDIA from $148.00 to $167.00 and gave the stock a “buy” rating in a report on Tuesday, November 19th. Wedbush raised their price objective on shares of NVIDIA from $160.00 to $175.00 and gave the stock an “outperform” rating in a report on Thursday, November 21st. Bank of America reiterated a “buy” rating and set a $190.00 price target on shares of NVIDIA in a research note on Thursday, November 21st. Redburn Atlantic began coverage on shares of NVIDIA in a research note on Tuesday, November 12th. They set a “buy” rating and a $178.00 price target on the stock. Finally, Benchmark reaffirmed a “buy” rating and set a $190.00 price target on shares of NVIDIA in a research note on Tuesday, January 7th. Four equities research 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 company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $165.23.

NVIDIA Stock Down 15.6 %

The company has a debt-to-equity ratio of 0.13, a current ratio of 4.10 and a quick ratio of 3.64. The company has a market cap of $2.95 trillion, a price-to-earnings ratio of 47.75, a P/E/G ratio of 2.65 and a beta of 1.64. The firm has a 50-day moving average price of $138.72 and a 200 day moving average price of $129.52.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, November 20th. The computer hardware maker reported $0.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.69 by $0.12. NVIDIA had a net margin of 55.69% and a return on equity of 114.83%. The business had revenue of $35.08 billion during the quarter, compared to analysts’ expectations of $33.15 billion. During the same period in the prior year, the company earned $0.38 EPS. The firm’s quarterly revenue was up 93.6% compared to the same quarter last year. Sell-side analysts predict that NVIDIA Co. will post 2.78 EPS for the current year.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, December 27th. Investors of record on Thursday, December 5th were given a dividend of $0.01 per share. The ex-dividend date of this dividend was 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%.

Insider Transactions at NVIDIA

In related news, CFO Colette Kress sold 66,670 shares of the business’s stock in a transaction dated Friday, December 13th. The stock was sold at an average price of $135.40, for a total transaction of $9,027,118.00. Following the completion of the transaction, the chief financial officer now directly owns 3,351,572 shares in the company, valued at $453,802,848.80. The trade was a 1.95 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Tench Coxe sold 1,000,000 shares of the stock in a transaction on 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 transaction, the director now directly owns 28,671,360 shares in the company, valued at approximately $3,763,402,713.60. This represents a 3.37 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,108,348 shares of company stock valued at $146,506,958 over the last ninety days. 4.23% of the stock is owned by company insiders.

Institutional Trading of NVIDIA

Institutional investors have recently made changes to their positions in the stock. Groesbeck Investment Management Corp NJ increased its position in NVIDIA by 5.3% during the 4th quarter. Groesbeck Investment Management Corp NJ now owns 13,890 shares of the computer hardware maker’s stock valued at $1,865,000 after purchasing an additional 700 shares during the period. Hager Investment Management Services LLC bought a new stake in shares of NVIDIA during the fourth quarter valued at approximately $8,635,000. Alexander Labrunerie & CO. Inc. grew its stake in shares of NVIDIA by 3.2% in the fourth quarter. Alexander Labrunerie & CO. Inc. now owns 56,696 shares of the computer hardware maker’s stock worth $7,614,000 after acquiring an additional 1,768 shares during the period. Stratos Investment Management LLC grew its holdings in shares of NVIDIA by 3.9% in the fourth quarter. Stratos Investment Management LLC now owns 138,490 shares of the computer hardware maker’s stock worth $18,598,000 after acquiring an additional 5,140 shares during the period. Finally, Stratos Wealth Partners LTD. boosted its holdings in shares of NVIDIA by 1.5% in the fourth quarter. Stratos Wealth Partners LTD. now owns 1,177,296 shares of the computer hardware maker’s stock worth $158,099,000 after buying an additional 17,526 shares during the last quarter. Hedge funds and other 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.