NVIDIA (NASDAQ:NVDA) Shares Down 4.4% – Here’s Why

Shares of NVIDIA Corporation (NASDAQ:NVDA) fell 4.4% on Friday . The company traded as low as $224.24 and last traded at $225.32. 174,840,490 shares were traded during mid-day trading, an increase of 2% from the average session volume of 170,756,047 shares. The stock had previously closed at $235.74.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: U.S. approval for H200 chip sales to China could reopen a large market and lift data center revenue expectations. Reuters: US clears H200 chip sales to 10 China firms as Nvidia CEO looks for breakthrough
• Positive Sentiment: UBS raised its price target to $275 from $245, and Cantor Fitzgerald lifted its target to $350, signaling strong analyst confidence in NVIDIA’s earnings power and AI demand. Proactive: Nvidia price target boosted ahead of expected first quarter revenue beat
• Positive Sentiment: Multiple reports say NVIDIA’s Q1 results are expected to beat estimates, supported by hyperscaler spending and continued AI infrastructure buildout. Zacks: NVIDIA Likely to Beat Q1 Earnings Estimates

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on NVDA. Citigroup began coverage on NVIDIA in a report on Wednesday, April 15th. They issued a “buy” rating on the stock. Susquehanna reissued a “positive” rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a report on Tuesday. Piper Sandler reissued an “overweight” rating on shares of NVIDIA in a report on Thursday, February 26th. Zacks Research raised NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, February 25th. Finally, UBS Group raised their price objective on NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday. Four equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA has an average rating of “Buy” and a consensus price target of $276.56.

NVIDIA Price Performance

The firm has a 50 day moving average of $191.52 and a 200-day moving average of $188.12. The company has a market cap of $5.46 trillion, a P/E ratio of 45.98, a P/E/G ratio of 0.74 and a beta of 2.25. The company has a current ratio of 3.91, a quick ratio of 3.24 and a debt-to-equity ratio of 0.05.

NVIDIA (NASDAQ:NVDA) last issued its earnings results on Wednesday, February 25th. The computer hardware maker reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.54 by $0.08. The company had revenue of $68.13 billion for the quarter, compared to the consensus estimate of $65.56 billion. NVIDIA had a return on equity of 97.37% and a net margin of 55.60%.The firm’s quarterly revenue was up 73.2% on a year-over-year basis. During the same quarter last year, the company earned $0.89 EPS. On average, equities research analysts predict that NVIDIA Corporation will post 7.84 EPS for the current year.

NVIDIA Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th were issued a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 0.0%. The ex-dividend date was Wednesday, March 11th. NVIDIA’s dividend payout ratio (DPR) is currently 0.82%.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director Aarti S. Shah sold 19,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the completion of the transaction, the director owned 36,007 shares in the company, valued at $6,362,796.97. This trade represents a 34.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Colette Kress sold 42,650 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $174.89, for a total value of $7,459,058.50. Following the transaction, the chief financial officer owned 881,387 shares of the company’s stock, valued at $154,145,772.43. This represents a 4.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 906,336 shares of company stock worth $162,802,518 over the last three months. 4.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently modified their holdings of the stock. PMG Family Office LLC purchased a new position in NVIDIA during the third quarter worth approximately $2,150,000. Oak Ridge Investments LLC boosted its position in NVIDIA by 2.2% during the third quarter. Oak Ridge Investments LLC now owns 970,860 shares of the computer hardware maker’s stock worth $181,143,000 after purchasing an additional 20,559 shares in the last quarter. Weaver Capital Management LLC boosted its position in NVIDIA by 5.5% during the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock worth $15,893,000 after purchasing an additional 4,439 shares in the last quarter. Circle Wealth Management LLC boosted its position in NVIDIA by 16.1% during the third quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker’s stock worth $20,111,000 after purchasing an additional 14,936 shares in the last quarter. Finally, Sunburst Financial Group LLC boosted its position in NVIDIA by 11.3% during the fourth quarter. Sunburst Financial Group LLC now owns 42,515 shares of the computer hardware maker’s stock worth $7,929,000 after purchasing an additional 4,300 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.