NVIDIA (NASDAQ:NVDA) Stock Gets Price Target Reduction from Citigroup

NVIDIA (NASDAQ:NVDA) had its price target decreased by Citigroup from $315.00 to $285.00 in a report published on Tuesday,Benzinga reports. Citigroup currently has a buy rating on the computer hardware maker’s stock.

NVDA has been the subject of several other research reports. Mizuho set a $250.00 price objective on shares of NVIDIA in a research note on Monday. Royal Bank Of Canada reiterated an “outperform” rating and issued a $330.00 price target on shares of NVIDIA in a report on Monday. Yorkville Ives initiated coverage on NVIDIA in a research note on Tuesday, October 6th. They set an “outperform” rating and a $300.00 price target for the company. Needham & Company LLC reissued a “buy” rating and set a $300.00 price target on shares of NVIDIA in a research note on Wednesday, October 21st. Finally, DA Davidson restated a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat, NVIDIA has an average rating of “Moderate Buy” and a consensus price target of $283.63.

NVIDIA Trading Down 4.3%

NVDA stock opened at $166.19 on Tuesday. 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 twelve month low of $148.80 and a twelve month high of $243.37. The stock has a market capitalization of $4.01 trillion, a price-to-earnings ratio of 25.18, a price-to-earnings-growth ratio of 1.34 and a beta of 2.21. The firm’s fifty day simple moving average is $215.96 and its two-hundred day simple moving average is $204.25.

NVIDIA (NASDAQ:NVDA) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (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 firm had revenue of $96.22 billion during the quarter, compared to analyst estimates 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. As a group, analysts anticipate that NVIDIA will post 9.29 earnings per share for the current year.

NVIDIA Dividend Announcement

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

NVIDIA announced that its Board of Directors has authorized a share buyback plan on Monday, September 28th that permits the company to repurchase $150 billion in shares. This buyback authorization permits the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Share buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In related news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction dated 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 sale, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction dated 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 sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% 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 a total of 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. Corporate insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Several large investors have recently modified their holdings of NVDA. Jupiter Topco LLC bought a new stake in shares of NVIDIA in the 2nd quarter valued at about $16,156,076,000. Van ECK Associates Corp raised its stake in shares of NVIDIA by 34.7% during the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after acquiring an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of NVIDIA during the 3rd quarter worth approximately $3,921,459,000. State Street Corp lifted its position in NVIDIA by 1.6% during the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after acquiring an additional 15,897,836 shares during the last quarter. Finally, Amundi lifted its position in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after acquiring an additional 12,575,177 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.

NVIDIA News Summary

Investors following NVDA have been watching these news items:

• Positive Sentiment: Some investors see the selloff as an opportunity: retail traders reportedly bought about $111 million of NVDA in the first 30 minutes of trading. Bullish commentary points to NVIDIA’s established AI business and continuing infrastructure demand. Article: Huang Exit Fuels Nvidia Bulls
• Neutral Sentiment: Kress’s experience as CFO and the board’s assurance that customer commitments and the product roadmap will continue provide some operational continuity, though she is serving only on an interim basis. NVIDIA’s fiscal Q3 report on Nov. 17 is the next key test for demand, guidance and confidence in the transition. Article: Colette Kress named interim CEO
• Negative Sentiment: Huang’s departure raises key-person and succession concerns after 33 years at the helm. The surrounding allegations and scrutiny—including questions about possible chip diversion to China—could invite tighter export controls and damage investor confidence; these claims remain under investigation and are not established findings. Article: Jensen Huang steps down

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.