NVIDIA (NASDAQ:NVDA) Stock Gets Price Target Trim from Melius Research

NVIDIA (NASDAQ:NVDA) had its price target reduced by Melius Research from $420.00 to $315.00 in a report published on Monday,Benzinga reports. They currently have a buy rating on the computer hardware maker’s stock.

Several other analysts also recently weighed in on NVDA. Cantor Fitzgerald restated an “overweight” rating and issued a $350.00 price target on shares of NVIDIA in a research note on Thursday, October 1st. DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a research report on Wednesday, August 26th. China Renaissance lifted their price objective on NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Piper Sandler initiated coverage on NVIDIA in a report on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 target price on the stock. Finally, Zacks Research raised NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Five analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $318.85.

NVIDIA Trading Down 3.2%

Shares of NASDAQ NVDA opened at $200.13 on Monday. NVIDIA has a 1 year low of $164.27 and a 1 year high of $243.37. The stock has a market cap of $4.82 trillion, a P/E ratio of 29.95, a price-to-earnings-growth ratio of 1.59 and a beta of 2.21. The firm has a 50-day moving average of $221.19 and a 200 day moving average of $204.51. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the firm posted $1.05 earnings per share. NVIDIA’s quarterly revenue was up 105.9% on a year-over-year basis. As a group, sell-side analysts expect that NVIDIA will post 9.30 EPS for the current fiscal year.

NVIDIA announced that its board has approved a share buyback program on Monday, September 28th that allows the company to repurchase $150 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Share repurchase programs are often a sign that the company’s management believes its stock is undervalued.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

Insider Transactions at NVIDIA

In other news, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock worth $399,450,353 over the last quarter. 3.94% of the stock is currently owned by insiders.

Institutional Trading of NVIDIA

A number of institutional investors have recently made changes to their positions in the stock. White Lighthouse Investment Management Inc. boosted its holdings in shares of NVIDIA by 0.9% in the third quarter. White Lighthouse Investment Management Inc. now owns 5,304 shares of the computer hardware maker’s stock valued at $1,211,000 after acquiring an additional 46 shares in the last quarter. Retirement Wealth Solutions LLC increased its stake in shares of NVIDIA by 1.2% during the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock worth $825,000 after acquiring an additional 47 shares during the period. LightSquare Wealth Management LLC increased its stake in shares of NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock worth $3,741,000 after acquiring an additional 49 shares during the period. CWS Financial Advisors LLC raised its holdings in NVIDIA by 3.1% during the third quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker’s stock worth $377,000 after purchasing an additional 49 shares in the last quarter. Finally, Defender Capital LLC. raised its holdings in NVIDIA by 0.7% during the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after purchasing an additional 50 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Underlying AI infrastructure demand remains a support: one report cited resilient demand and tight TSMC manufacturing capacity, while NVIDIA’s OpenShell integration with ModelOp adds another enterprise AI governance use case. Article: What Is Going On With Nvidia Stock on Wednesday? Article: ModelOp Unveils Industry-First Full-Stack AI Policy Enforcement With NVIDIA OpenShell
• Neutral Sentiment: NVIDIA’s reported guidance of $108 billion sets a high bar for upcoming revenue expectations, making the next results and outlook an important test of whether demand can continue to meet investor expectations. Article: Nvidia Stocks Decline 1.35% as $108 Billion Guide Sets the Next Revenue Hurdle
• Negative Sentiment: Democratic midterm victories sparked concerns that data-center projects could face slower approvals or higher costs, weighing on semiconductor shares even as broader markets rallied. Article: Why is Nvidia stock falling while broader markets rally on Democratic midterm win?
• Negative Sentiment: NVIDIA has reportedly told cloud partners to generate at least 51% of sales from non-Chinese customers. The move responds to U.S. export rules but could constrain business with Chinese customers and complicate operations for some providers. Article: Nvidia Is Telling Cloud Clients to Sell at Least 51% to Non-Chinese Customers
• Negative Sentiment: Melius Research reportedly cut its price target, and shares slipped below their 200-day moving average—adding to near-term caution amid broader chip-sector weakness. Article: NVIDIA Stock Price Target Cut by Melius Research Article: NVIDIA Share Price Crosses Below 200 Day Moving Average Following Analyst Downgrade

NVIDIA Company Profile

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.