Nintendo (OTCMKTS:NTDOY) Shares Gap Down – What’s Next?

Nintendo Co. (OTCMKTS:NTDOY)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $15.2450, but opened at $14.42. Nintendo shares last traded at $14.47, with a volume of 402,290 shares changing hands.

Key Headlines Impacting Nintendo

Here are the key news stories impacting Nintendo this week:

• Positive Sentiment: Strong quarterly results — Nintendo beat expectations with a sizable revenue jump and higher profit, driven by Switch 2 early sales and software strength. Earnings / Marketbeat
• Positive Sentiment: Console and game momentum: Switch 2 helped lift nine?month net profit and the Switch family became the company’s best?selling console; strong titles (e.g., Pokemon Legends: Z-A selling ~12.3M) support recurring hardware/software cash flows. TechXplore: Switch 2 sales Shacknews: Pokemon sales
• Positive Sentiment: Analyst upgrades: Macquarie upgraded Nintendo to “outperform” and UBS moved the stock from “sell” to “neutral,” reflecting some buy?side confidence in the console cycle. The Fly: Macquarie upgrade
• Neutral Sentiment: Guidance posture: Nintendo reaffirmed its full?year operating profit forecast but issued revenue guidance slightly below consensus (company cited sales expectations it considers achievable). This reduces upside surprised expectations but signals management confidence in current targets. Invezz: guidance
• Negative Sentiment: Memory cost / shortage worries and momentum concerns triggered a sharp selloff as investors fear higher component costs could pressure Switch 2 margins and future console supply/sell?through. Major outlets reported a roughly 10% intraday slide tied to these concerns. CNBC: memory concerns Reuters: momentum fears
• Negative Sentiment: Mixed analyst stance: China Renaissance reaffirmed a “sell” rating, keeping downside pressure from some institutional holders despite other upgrades. (No link available.)

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on NTDOY shares. China Renaissance reaffirmed a “sell” rating on shares of Nintendo in a report on Wednesday. UBS Group raised Nintendo from a “sell” rating to a “neutral” rating in a report on Wednesday. Freedom Capital raised shares of Nintendo from a “hold” rating to a “strong-buy” rating in a report on Monday, December 22nd. Wolfe Research raised shares of Nintendo from an “underperform” rating to a “peer perform” rating in a research note on Thursday, January 22nd. Finally, Macquarie raised shares of Nintendo from a “neutral” rating to an “outperform” rating in a report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy”.

Nintendo Trading Down 3.1%

The company has a market capitalization of $76.78 billion, a PE ratio of 27.89 and a beta of 0.56. The stock has a fifty day moving average of $17.53 and a two-hundred day moving average of $20.49.

Nintendo (OTCMKTS:NTDOY) last posted its quarterly earnings results on Tuesday, November 4th. The company reported $0.15 EPS for the quarter, topping the consensus estimate of $0.08 by $0.07. Nintendo had a net margin of 21.10% and a return on equity of 12.26%. The firm had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $464.35 billion. Equities analysts forecast that Nintendo Co. will post 0.44 EPS for the current year.

Institutional Investors Weigh In On Nintendo

Several institutional investors have recently bought and sold shares of NTDOY. Thurston Springer Miller Herd & Titak Inc. raised its position in shares of Nintendo by 322.5% in the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 4,225 shares of the company’s stock worth $71,000 after acquiring an additional 3,225 shares in the last quarter. Confluence Investment Management LLC lifted its position in Nintendo by 4.0% during the fourth quarter. Confluence Investment Management LLC now owns 67,829 shares of the company’s stock valued at $1,144,000 after buying an additional 2,628 shares during the period. Dorsey Wright & Associates purchased a new stake in shares of Nintendo in the 3rd quarter worth about $1,562,000. PNC Financial Services Group Inc. increased its stake in shares of Nintendo by 30.6% in the 3rd quarter. PNC Financial Services Group Inc. now owns 7,891 shares of the company’s stock worth $168,000 after acquiring an additional 1,851 shares in the last quarter. Finally, AdvisorShares Investments LLC purchased a new stake in Nintendo in the third quarter worth about $1,052,000. 0.02% of the stock is currently owned by hedge funds and other institutional investors.

About Nintendo

Nintendo Co, Ltd., headquartered in Kyoto, Japan, is a global entertainment company best known for designing, manufacturing and marketing video game hardware and software. Founded in 1889 as a playing-card company, Nintendo transitioned into electronic entertainment in the latter half of the 20th century and has since become one of the most recognizable names in interactive entertainment. The company serves markets worldwide, with major operations and customer bases in Japan, North America and Europe, and it maintains a presence through regional subsidiaries, distribution partners and digital storefronts.

Nintendo’s business spans console and handheld hardware, first-party software titles, digital services and licensing.