NVIDIA (NASDAQ:NVDA) Stock Gets Downgrade from 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 note issued to investors on Thursday, Zacks reports.

Other equities research analysts have also recently issued reports about the company. Phillip Securities upped their price target on NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Aletheia Capital lowered NVIDIA from a “buy” rating to a “hold” rating in a research report on Monday, November 9th. Cantor Fitzgerald dropped their target price on shares of NVIDIA from $350.00 to $250.00 and set an “overweight” rating on the stock in a report on Thursday. President Capital boosted their target price on shares of NVIDIA from $295.00 to $330.00 in a report on Thursday, August 27th. Finally, TD Cowen reaffirmed a “buy” rating on shares of NVIDIA in a research report on Tuesday, August 18th. Five equities research 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 stock. According to MarketBeat, NVIDIA has an average rating of “Moderate Buy” and an average price target of $277.89.

NVIDIA Stock Down 2.0%

Shares of NVDA stock traded down $3.34 during midday trading on Thursday, reaching $162.85. 363,372,273 shares of the stock were exchanged, compared to its average volume of 196,617,360. NVIDIA has a 1 year low of $148.80 and a 1 year high of $243.37. The company’s 50 day moving average is $214.64 and its two-hundred day moving average is $204.12. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The firm has a market cap of $3.92 trillion, a PE ratio of 20.59, a price-to-earnings-growth ratio of 1.28 and a beta of 2.21.

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

NVIDIA declared that its Board of Directors has initiated a share buyback plan 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. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In other news, 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 transaction of $144,122,997.18. Following the completion of the transaction, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’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 owned 2,687,660 shares of the company’s stock, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is owned by insiders.

Institutional Trading of NVIDIA

Institutional investors have recently bought and sold shares of the company. Jupiter Topco LLC bought a new stake in shares of NVIDIA during the second quarter valued at approximately $16,156,076,000. Van ECK Associates Corp raised its holdings in NVIDIA by 34.7% in 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 during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in NVIDIA in the 3rd quarter valued at approximately $3,921,459,000. State Street Corp lifted its position in NVIDIA by 1.6% in the 2nd 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 in the last quarter. Finally, Amundi lifted its position in NVIDIA by 10.4% in the 1st 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 in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Key NVIDIA News

Investors following NVDA have been watching these news items:

• 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
• 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.