NVIDIA (NASDAQ:NVDA) Cut to Sector Weight at KeyCorp

KeyCorp lowered shares of NVIDIA (NASDAQ:NVDA) from an overweight rating to a sector weight rating in a report published on Thursday morning, MarketBeat Ratings reports.

Several other research analysts have also recently issued reports on NVDA. Needham & Company LLC reissued a “buy” rating and set a $300.00 price target on shares of NVIDIA in a report on Wednesday, October 21st. BNP Paribas Exane reaffirmed an “outperform” rating and issued a $345.00 price objective on shares of NVIDIA in a report on Monday, October 5th. UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a report on Friday, October 9th. Jefferies Financial Group started coverage on NVIDIA in a research note on Wednesday. They set a “hold” rating for the company. Finally, Oppenheimer cut NVIDIA from an “outperform” rating to a “market perform” rating in a report on Thursday. Five investment analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and thirteen have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $277.89.

NVIDIA Stock Performance

NVDA traded down $3.34 during trading on Thursday, hitting $162.85. The stock had a trading volume of 363,372,273 shares, compared to its average volume of 196,617,360. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The firm has a market capitalization of $3.92 trillion, a P/E ratio of 20.59, a PEG ratio of 1.28 and a beta of 2.21. The company’s 50-day moving average price is $214.64 and its 200 day moving average price is $204.12. NVIDIA has a twelve month low of $148.80 and a twelve month high of $243.37.

NVIDIA (NASDAQ:NVDA) last released its earnings results 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 company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter last year, the business earned $1.05 EPS. The business’s revenue was up 105.9% on a year-over-year basis. On average, equities research analysts forecast that NVIDIA will post 9.29 EPS for the current fiscal year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

NVIDIA declared that its Board of Directors has initiated a stock repurchase program on Monday, September 28th that permits the company to repurchase $150 billion in shares. This buyback authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other NVIDIA news, EVP Timothy Teter sold 30,460 shares of the business’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the sale, 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by insiders.

Institutional Investors Weigh In On NVIDIA

Large investors have recently added to or reduced their stakes in the business. Intelligent Financial Strategies acquired a new stake in shares of NVIDIA in the third quarter valued at approximately $26,000. Montgomery Financial Services LLC purchased a new position in shares of NVIDIA during the 2nd quarter worth approximately $28,000. Newton One Investments LLC purchased a new position in shares of NVIDIA during the 3rd quarter worth approximately $34,000. Phillip James Consulting Co. acquired a new position in shares of NVIDIA during the 1st quarter worth approximately $40,000. Finally, Bard Associates Inc. lifted its stake in NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after buying an additional 266 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

Recent NVIDIA Headlines

Investors following NVDA have been watching these headlines:

• Positive Sentiment: Despite cutting its price target to $300, Rosenblatt Securities maintained a Buy rating; other coverage also points to continued investor optimism about NVIDIA’s long-term growth potential. Rosenblatt Securities rating
• Positive Sentiment: Investors will look to the November 17 earnings report for evidence that AI demand remains robust. Articles cite strong infrastructure spending and a $108 billion revenue outlook as potential supports for the business. NVIDIA earnings preview
• Negative Sentiment: Huang’s departure creates uncertainty around succession and strategy. CFO Colette Kress is interim CEO, and the board has not yet selected a search firm for a permanent replacement. CEO search update

About NVIDIA

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications. NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.