NVIDIA (NASDAQ:NVDA) Rating Lowered to Hold at Stonex Financial

NVIDIA (NASDAQ:NVDA) was downgraded by investment analysts at Stonex Financial from a “strong-buy” rating to a “hold” rating in a research report issued on Thursday, Zacks reports.

A number of other research firms have also recently issued reports on NVDA. Sanford C. Bernstein set a $200.00 price target on shares of NVIDIA and gave the company a “market perform” rating in a report on Thursday. Robert W. Baird lowered NVIDIA from an “outperform” rating to a “neutral” rating and dropped their price objective for the stock from $500.00 to $200.00 in a research note on Wednesday. China Renaissance lifted their price objective on NVIDIA from $319.00 to $330.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Cantor Fitzgerald cut their price objective on NVIDIA from $350.00 to $250.00 and set an “overweight” rating for the company in a research report on Thursday. Finally, Evercore downgraded NVIDIA from an “outperform” rating to a “positive” rating and set a $186.00 target price for the company. in a research note on Wednesday. Five analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and fourteen have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $277.89.

NVIDIA Stock Performance

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

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s revenue was up 105.9% compared to the same quarter last year. During the same period last year, the business posted $1.05 EPS. On average, research analysts expect that NVIDIA will post 9.29 EPS for the current year.

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

Insiders Place Their Bets

In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

Several institutional investors and hedge funds have recently bought and sold shares of the business. Intelligent Financial Strategies acquired a new stake in shares of NVIDIA during the 3rd quarter valued at about $26,000. Montgomery Financial Services LLC acquired a new stake in NVIDIA during the second quarter valued at approximately $28,000. Newton One Investments LLC acquired a new stake in NVIDIA during the third quarter valued at approximately $34,000. Phillip James Consulting Co. bought a new stake in shares of NVIDIA in the 1st quarter valued at approximately $40,000. Finally, Bard Associates Inc. grew its stake in shares of 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 purchasing an additional 266 shares during the period. Institutional investors own 65.27% of the company’s stock.

Latest NVIDIA News

Investors following NVDA have been watching these news items:

• 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
• Neutral Sentiment: Investors are also being urged to judge AI demand by the revenue generated from computing capacity—not just the capital companies spend to build it. That could sharpen questions about how quickly AI infrastructure investments translate into sales. Barron’s analysis of AI revenue
• Negative Sentiment: HSBC downgraded NVIDIA to Hold with a $170 target, and several firms have reduced price targets. Analysts also warn that leadership uncertainty could give chip rivals more opportunity to win business. HSBC downgrade coverage

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.