NVIDIA (NASDAQ:NVDA) Stock Rating Cut to “Market Perform” at William Blair

NVIDIA (NASDAQ:NVDA) was downgraded by equities researchers at William Blair from an “outperform” rating to a “market perform” rating in a research note issued on Thursday, Marketbeat Ratings reports.

A number of other brokerages have also weighed in on NVDA. UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a research note on Friday, October 9th. Rothschild & Co Redburn upped their target price on NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Rosenblatt Securities reaffirmed a “buy” rating and set a $390.00 price target on shares of NVIDIA in a research note on Tuesday, September 29th. President Capital lifted their price target on NVIDIA from $295.00 to $330.00 in a research report on Thursday, August 27th. Finally, Benchmark reissued a “buy” rating and issued a $335.00 price objective on shares of NVIDIA in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-one have given a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $298.18.

NVIDIA Stock Performance

Shares of NVDA opened at $173.73 on Thursday. The firm has a market cap of $4.19 trillion, a price-to-earnings ratio of 21.96, a PEG ratio of 1.30 and a beta of 2.21. The business’s 50 day moving average is $217.12 and its two-hundred day moving average is $204.35. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. NVIDIA has a 52-week low of $164.27 and a 52-week high of $243.37.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion during 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%. The firm’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same period last year, the business earned $1.05 EPS. Analysts forecast that NVIDIA will post 9.30 EPS for the current fiscal year.

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

Insiders Place Their Bets

In related news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction that occurred 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 $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last three months. Company insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

A number of large investors have recently made changes to their positions in NVDA. State Street Corp raised its holdings in shares of NVIDIA by 1.5% in the third quarter. State Street Corp now owns 1,025,075,347 shares of the computer hardware maker’s stock valued at $234,355,574,000 after purchasing an additional 15,291,910 shares during the last quarter. Intesa Sanpaolo Wealth Management boosted its holdings in NVIDIA by 5.1% during the third quarter. Intesa Sanpaolo Wealth Management now owns 143,190 shares of the computer hardware maker’s stock worth $32,702,000 after purchasing an additional 7,009 shares during the last quarter. E Fund Management Hong Kong Co. Ltd. grew its position in NVIDIA by 84.4% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 141,204 shares of the computer hardware maker’s stock valued at $32,248,000 after purchasing an additional 64,623 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd grew its position in NVIDIA by 59.5% in the third quarter. Clal Insurance Enterprises Holdings Ltd now owns 2,511,858 shares of the computer hardware maker’s stock valued at $573,861,000 after purchasing an additional 936,647 shares in the last quarter. Finally, TIAA CREF Individual & Institutional Services LLC increased its stake in NVIDIA by 13.5% in the 3rd quarter. TIAA CREF Individual & Institutional Services LLC now owns 526,858 shares of the computer hardware maker’s stock valued at $120,324,000 after buying an additional 62,597 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.

NVIDIA News Roundup

Investors following NVDA have been watching these news items:

• Positive Sentiment: Underlying AI demand offers a counterpoint: strong results and an upbeat outlook from Nvidia customer CoreWeave were cited as evidence that spending on AI infrastructure remains robust. Article: Great News for Nvidia, Micron, Broadcom, and AMD Stock Investors
• Negative Sentiment: Reports that the board may oust longtime CEO Huang have heightened key-person and succession concerns. Analysts have cut targets this week, including Wells Fargo and Citigroup, adding to investor caution. Article: Nvidia Stock Is Tumbling. What Happens Next If Huang Gets Ousted
• Negative Sentiment: The allegations have revived scrutiny of whether restricted Nvidia AI chips reached China and prompted calls for tighter export controls; Congress is also reportedly preparing to question Huang. Any policy response could threaten sales opportunities and increase compliance risk. Article: Huang scandal revives push to tighten China chip curbs

NVIDIA Company Profile

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.