Struggling Nvidia Stock Slapped With Bear Note

Most analysts remain bullish on the chip stock, though

Managing Editor
Dec 12, 2018 at 9:16 AM
facebook X logo linkedin


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.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI