Struggling Nvidia Stock Slapped With Bear Note

Most analysts remain bullish on the chip stock, though

by Patrick Martin

Published on Dec 12, 2018 at 9:16 AM
Updated on Dec 13, 2018 at 9:06 AM

Perhaps no stock has fallen further from grace during the broad market sell-off than Nvidia Corporation (NASDAQ:NVDA). Today, the chip stock is down 0.6% in electronic trading, after RBC trimmed its price target to $230 from $260, but even that still represents a 55% premium to yesterday's closing perch of $148.19. Also adding pressure is a report out of Bloomberg yesterday that SoftBank could soon sell its stake in the company.

Nvidia stock sat at a record high of $292.76 on Oct. 2. Since then, a number of bear gaps have dragged NVDA lower to shed more than half of its value, form a death cross, and hit an annual low of $133.31 on Nov. 20. And even a subsequent rally from that bottom was turned away by the shares' 20-day moving average. 

Analysts for the most part remain committed to the equity. Of the 26 brokerages covering NVDA, 16 rate it a "buy" or better, with only one "sell" on the books. What's more, the stock's consensus 12-month price target of $228.88 is right in line with RBC's bear note today, but still a ways away from its current levels.

In the options pits, the security's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.76, which ranks in the lowest annual percentile. In other words, options traders seem relatively upbeat amid this steady downtrend, with data showing a higher-than-normal preference for near-term calls over puts.


a schaeffer's exclusive

PLAY TRENDS LIKE A PRO!

5 tips to leverage profits in this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.
Roller Coaster Week Defined by Trade Headlines, Jobs Report
The Dow made outsized moves in both directions this week
Needham is Buying Trade Desk Ahead of the 2020 Election
Trade Desk stock has more than doubled in 2019
The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.