NVIDIA Corporation (NASDAQ: NVDA) Has Not A Good News: Stock Could Fall Even -153.25%

NVIDIA Corporation (NASDAQ:NVDA) price is hovering lower on Tuesday, September 19, dropping -1.21% below its previous close.

A look at today’s price movement shows that the recent level at last check reads $439.66, with intraday deals fluctuating between $420.00 and $442.42. The company’s P/E ratio in the trailing 12-month period read 104.92. Taking into account the 52-week price action we note that the stock hit a 52-week high of $502.66 and 52-week low of $108.13. The stock added 0.31% on its value in the past month.

NVIDIA Corporation, which has a market valuation of $1113.93 billion. The company stock has a Forward Dividend ratio of 0.16, while the dividend yield is 0.04%. It is understandable that investor optimism is growing ahead of the company’s current quarter results. Analysts tracking NVDA have forecast the quarterly EPS to grow by 3.34 per share this quarter, while the same analysts predict the annual EPS to hit $10.76 for the year 2023 and up to $16.71 for 2025. In this case, analysts estimate an annual EPS growth of 222.20% for the year and 55.30% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $16.06 billion, with the likely lows of $15.93 billion and highs of $16.72 billion. Staying with the analyst view, there is a consensus estimate of $54.61 billion for the company’s annual revenue in 2024. Per this projection, the revenue is forecast to grow 102.50% above that which the company brought in 2024.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with 1 upward and no downward reviews. On the technical perspective front, indicators give NVDA a short term outlook of 50% Buy on average. Looking at the stock’s medium term indicators we note that it is averaging as a 50% Buy, while an average of long term indicators are currently assigning the stock as 100% Buy.

Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 51 analysts have assigned NVDA a recommendation rating as follows: 3 rate it as a Hold; 43 advise Buy while 5 analyst(s) assign an Overweight rating. 0 analyst(s) have tagged the NVIDIA Corporation (NVDA) stock as Underweight, with 0 recommending Sell. In general, analysts have rated the stock Buy, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company’s shares.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 1.33. The overview shows that NVDA’s price is at present -6.80% off the SMA20 and -4.40% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 39.55, with weekly volatility standing at 3.42%. The indicator jumps to 4.11% when calculated based on the past 30 days. NVIDIA Corporation (NASDAQ:NVDA)’s beta value is holding at 1.75, while the average true range (ATR) indicator is currently reading 16.61. Considering analysts have assigned the stock a price target range of $535.00-$1100.00 as the low and high respectively, we find the trailing 12-month average consensus price target to be $654.73. Based on this estimate, we see that today’s price at last check is roughly -23.17% off the estimated low and -153.25% off the forecast high. Investors will no doubt be excited to see the share price fall to $623.75, which is the median consensus price, and at that level NVDA would be -43.61% from recent price.

Turning out attention to how the NVIDIA Corporation stock has performed in comparison to its peers in the industry, here’s what we find: NVDA’s stock is -1.21% on the day and 229.10% in the past 12 months. Another comparison is with Broadcom Inc. (AVGO) whose stock price is down -0.91% in the current trading session, and has flourished 67.61% over the past year. Also, QUALCOMM Incorporated (QCOM) is currently showing down trend of -1.90% while its price kept floating at -11.48% over the past year. Elsewhere in the market, the S&P 500 Index has stumbled -0.61% in today’s early trading, with the Dow Jones Industrial also seeing a negative session so far with -0.66%.

An analysis of the NVIDIA Corporation (NASDAQ:NVDA) stock in terms of its daily trading volume indicates that the 3-month average is 49.95 million. However, this figure increases on the past 10-day timeline to an average of 43.55 million.

Current records show that the company has 2.47B in outstanding shares. The insiders’ percentage holdings are 0.40% of outstanding shares while the percentage share held by institutions stands at 65.90%. The stats also highlight that short interest as of Aug 30, 2023, stood at 26.91 million shares, which puts the short ratio at the time at 0.47. From this we can glean that short interest is 1.09% of company’s current outstanding shares. Notably, we see that shares short in August rose slightly given the previous month’s figure stood at 26.4 million. But the 197.22% upside, the stock’s price has registered year-to-date as of today’s value, will likely reignite investor interest given the prospect of it rallying even higher.