NVIDIA (NASDAQ:NVDA) Stock Price Down 4.4% – Should You Sell?

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 4.4% on Thursday. The stock traded as low as $211.26 and last traded at $212.21. Approximately 123,933,806 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 150,264,484 shares. The stock had previously closed at $221.97.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s GTC Berlin announcements reinforced its expansion beyond GPUs. The DSX POD modular AI factory can potentially reduce deployment time from roughly six months to as little as 14 days, while DSX software is designed to improve power efficiency, cooling, and data-center utilization. NVIDIA Introduces DSX POD Reference Design
• Positive Sentiment: Partnerships with HPE, Schneider Electric, Nokia, automotive companies, robotics developers, and enterprise software providers broaden NVIDIA’s potential markets in physical AI, autonomous vehicles, telecom, and industrial computing. Schneider Electric, NVIDIA and HPE collaboration
• Positive Sentiment: Analyst commentary remains constructive, with BNP Paribas describing NVIDIA’s GTC progress as impressive and one Seeking Alpha analysis maintaining a Strong Buy view based on the company’s growing role in AI infrastructure, networking, security, and agentic computing. BNP Paribas on NVIDIA at GTC Berlin

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Daiwa Securities Group decreased their price objective on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating for the company in a research report on Thursday, September 17th. Itau BBA Securities dropped their target price on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of NVIDIA in a research note on Monday, August 31st. Oppenheimer set a $315.00 price target on NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 27th. Finally, Wedbush boosted their price target on NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, NVIDIA presently has an average rating of “Buy” and an average target price of $321.47.

NVIDIA Stock Down 4.4%

The firm has a market cap of $5.11 trillion, a P/E ratio of 26.83, a P/E/G ratio of 1.66 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The firm’s fifty day moving average is $222.86 and its 200 day moving average is $212.57.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s revenue was up 105.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.05 EPS. As a group, equities research analysts anticipate that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio is presently 12.64%.

NVIDIA declared that its Board of Directors has authorized a share buyback program on Monday, September 28th that permits the company to buy back $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Transactions at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors have recently modified their holdings of the business. River Street Advisors LLC boosted its holdings in NVIDIA by 2.7% in the 3rd quarter. River Street Advisors LLC now owns 60,445 shares of the computer hardware maker’s stock valued at $13,804,000 after purchasing an additional 1,566 shares during the period. Parthenon LLC grew its position in shares of NVIDIA by 10.6% during the 3rd quarter. Parthenon LLC now owns 4,425 shares of the computer hardware maker’s stock worth $1,011,000 after purchasing an additional 425 shares in the last quarter. MLP3 LLC acquired a new position in shares of NVIDIA during the 3rd quarter worth approximately $976,000. Patrick M Sweeney & Associates Inc. increased its holdings in shares of NVIDIA by 10.0% during the third quarter. Patrick M Sweeney & Associates Inc. now owns 5,941 shares of the computer hardware maker’s stock worth $1,357,000 after purchasing an additional 538 shares during the period. Finally, NovaPoint Capital LLC increased its holdings in shares of NVIDIA by 0.8% during the third quarter. NovaPoint Capital LLC now owns 75,562 shares of the computer hardware maker’s stock worth $17,257,000 after purchasing an additional 566 shares during the period. Institutional investors own 65.27% of the company’s stock.

About NVIDIA

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.