NVIDIA (NASDAQ:NVDA) Stock Price Down 4.2% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDA)’s stock price was down 4.2% during trading on Friday. The company traded as low as $200.92 and last traded at $204.64. Approximately 165,557,268 shares changed hands during trading, an increase of 11% from the average daily volume of 148,796,969 shares. The stock had previously closed at $213.66.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s strong earnings, expanding margins and outlook for roughly 70% revenue growth in fiscal 2028 continue to support the bullish case. Analysts argue that AI demand remains supply-constrained and that the company’s latest guidance exceeded expectations. NVIDIA’s AI Dominance Could Have Further to Run
• Positive Sentiment: The company is broadening its role beyond GPUs by offering complete AI-factory architectures, networking, software and edge systems. Expanded collaborations with Microsoft, Meta, Oracle and other partners could increase NVIDIA’s share of customers’ overall AI infrastructure budgets. How AI Factory Expansion Will Impact NVIDIA Investors
• Positive Sentiment: Commentary highlighting AI demand, pricing power and NVIDIA’s strategic investments in networking, software and AI companies provides potential long-term catalysts. Wall Street analyst sentiment remains broadly favorable despite the recent correction. NVIDIA Stock: Analyst Estimates and Ratings

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Rosenblatt Securities reiterated a “buy” rating and issued a $390.00 price objective on shares of NVIDIA in a research note on Tuesday, September 29th. China Renaissance increased their target price on shares of NVIDIA from $319.00 to $330.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Wedbush increased their target price on shares of NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Citigroup reaffirmed a “buy” rating and set a $315.00 target price (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Finally, Raymond James Financial set a $515.00 price target on shares of NVIDIA and gave the company a “strong-buy” rating in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $321.47.

NVIDIA Price Performance

The company’s 50-day moving average is $221.74 and its two-hundred day moving average is $204.24. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm has a market cap of $4.93 trillion, a P/E ratio of 25.87, a PEG ratio of 1.57 and a beta of 2.22.

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

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.

NVIDIA announced that its board has initiated a stock buyback program on Monday, September 28th that permits the company to buy back $150 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction 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 in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 over the last three months. 3.94% of the stock is owned by insiders.

Hedge Funds Weigh In On NVIDIA

Institutional investors have recently modified their holdings of the business. Intelligent Financial Strategies acquired a new position in NVIDIA in the 3rd quarter valued at about $26,000. Montgomery Financial Services LLC acquired a new stake in NVIDIA during the second quarter worth approximately $28,000. Langley Wealth Management LLC acquired a new stake in NVIDIA during the second quarter worth approximately $34,000. Newton One Investments LLC bought a new stake in shares of NVIDIA during the third quarter worth approximately $34,000. Finally, Phillip James Consulting Co. bought a new stake in shares of NVIDIA during the first quarter worth approximately $40,000. Institutional investors and hedge funds 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.