On 11 October, shares of NVIDIA Corporation (NASDAQ:NVDA) closed lower after a volatile session. The shares dropped -10.56 points or -4.3 percent at $235.13 with a heavy trade volume of 18.058 million shares. After opening the session at $242.17, the shares went as high as $247.56 and as low as $234.261, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $148 billion and now has 629.25 million shares outstanding. NVIDIA Corporation (NVDA) stock has lost -12.33 percent of market value in 21 trading days.
NVDA stock has a trailing 3-year beta of 1.74, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $6.65 a share in the trailing twelve months. The stock’s value has surged 21.51 percent year to date (YTD) against a rise of 23.14 percent in 12 month’s time. The company’s shares still trade -19.69 percent away from its 1-year high of $292.76 and 30.21 percent up from 52-week low of $180.58. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
NVIDIA Corporation (NVDA) will probably climb 26.4 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $400-month high price target. This represents a whopping 70.12 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $300, which represents a return potential of 27.59 percent when compared to the closing price of the stock of $235.13 on Thursday, October 11. The lowest price target for the stock is $120 — slightly more than -48.96 percent from NVDA’s current share price.
History has shown that shares in NVIDIA Corporation have gone up on 20 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings.
Let’s take a look at some insider activity at NVIDIA Corporation (NASDAQ:NVDA) and see the pattern. The earliest insider trade took place on 10/02/2018. Puri Ajay K parted with a total of 90.83 thousand shares of company at average share price of $289.35. The total for the sales was set at $26.28 million. After this transaction, the EVP, Worldwide Field Ops account balance stood at 293.36 thousand shares. The stock lost -15.09 percent since that insider sale. On 09/24/2018, Byron Michael, Principal Accounting Officer, sold 11.26 thousand shares at a price per share of $263.94. This removed 2.97 million shares from the insider’s fortune and the stock saw a -6.91 percent retreat in value since the news became public. This transaction left 81.41 thousand shares in the Principal Accounting Officer account.
On 09/20/2018, EVP & CFO Kress Colette performed a sale transaction worth $3.08 million. This sale at $266.31 each has eliminated 11.58 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -7.74 percent decrease since the transaction was reported. The insider now is left with 262.67 thousand shares remaining in the account. Byron Michael, who performs the Principal Accounting Officer job, sold 0.04 thousand shares for $12.05 thousand. The disposal occurred on 09/04/2018 was priced at $280.15 per share. The share price plunged -12.3 percent since the reporting date. Byron Michael now left with a stake of 100.77 thousand NVDA stock worth $23.69 million after the insider selling.
The stock is currently hovering around the first support level of $230.41. Below this, the next support is placed in the zone of $225.68. Till the time, the NVDA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 28.09 on daily chart, which may remain a cause for comfort. If the price breaks below $225.68 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $243.71 mark may result into a pull-back move towards $252.28 level.
Shares of NVIDIA Corporation (NVDA) are trading at a P/E ratio of 40 times earnings reported for the past 12 months. The industry NVDA operates in has an average P/E of 15.41. Its P/E ratio went as low as 18.49X and as high as 52.77 over the 5-year span.Further, it is sporting a 12.46 on the Price-to-Sales ratio. Compare this with the industry average P/S of 33.94. 62.4 percent is the gross profit margin for NVIDIA Corporation and operating margin sits at 37.2 percent. Along with this, the net profit margin is 36.2 percent.