NVIDIA (NASDAQ:NVDA) Stock Rating Cut to Hold at Aletheia Capital

Aletheia Capital downgraded shares of NVIDIA (NASDAQ:NVDA) from a buy rating to a hold rating in a report published on Monday morning,FinViz reports.

NVDA has been the topic of a number of other reports. Phillip Securities boosted their price target on shares of NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Wedbush increased their price objective on shares of NVIDIA from $330.00 to $345.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. President Capital raised their target price on shares of NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. Yorkville Ives assumed coverage on NVIDIA in a report on Tuesday, October 6th. They set an “outperform” rating and a $300.00 target price on the stock. Finally, Piper Sandler assumed coverage on NVIDIA in a report on Wednesday, September 9th. They set an “overweight” rating and a $300.00 target price on the stock. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, NVIDIA presently has an average rating of “Buy” and an average target price of $317.57.

NVIDIA Stock Down 4.3%

NASDAQ NVDA opened at $178.67 on Monday. The business has a fifty day moving average price of $219.03 and a 200 day moving average price of $204.50. NVIDIA has a one year low of $164.27 and a one year high of $243.37. 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 company has a market cap of $4.31 trillion, a P/E ratio of 22.59, a P/E/G ratio of 1.54 and a beta of 2.21.

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, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the firm posted $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. Research analysts anticipate that NVIDIA will post 9.30 EPS for the current fiscal year.

NVIDIA declared that its board has approved a share repurchase program on Monday, September 28th that permits the company to buy back $150 billion in shares. This buyback authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

NVIDIA Dividend Announcement

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

Insider Transactions at NVIDIA

In related news, EVP Timothy S. 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 value of $6,786,488.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 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 transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last ninety days. Company insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

A number of institutional investors and hedge funds have recently bought and sold shares of NVDA. Jupiter Topco LLC acquired a new position in shares of NVIDIA in the second quarter worth $16,156,076,000. Van ECK Associates Corp raised its stake in shares of NVIDIA by 34.7% in the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock valued at $15,176,771,000 after acquiring an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of NVIDIA in the third quarter valued at $3,921,459,000. State Street Corp boosted its holdings in NVIDIA by 1.6% in 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 purchasing an additional 15,897,836 shares during the period. Finally, Amundi boosted its holdings in NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s underlying business remains strong: its latest reported quarter beat estimates, with revenue up 105.9% year over year. That growth may help support the stock if the controversy does not disrupt operations. Article: Jensen Huang Might Be the Biggest Wild Card for Nvidia Stock
• Positive Sentiment: The company also announced a South Korean AI-infrastructure collaboration with Rebellions and SK Telecom, extending use of NVIDIA’s NVLink platform. Article: NVIDIA, Rebellions and SK Telecom Announce Collaboration
• Neutral Sentiment: NVIDIA’s board has begun an independent investigation into reports that Huang was targeted by a foreign intelligence effort. The board said it has no reason to believe company secrets or national security were compromised; Huang says he is cooperating. The outcome remains uncertain. Article: Statement from NVIDIA Board of Directors
• Negative Sentiment: The investigation follows Huang’s admission of an affair with Alice Huang, a former executive at a company that buys NVIDIA chips, who U.S. intelligence reportedly suspects of links to Chinese intelligence. Investors are concerned about potential exposure of sensitive information, reputational damage, and complications for NVIDIA’s China business. Article: Nvidia Shares Slump on Spy Probe
• Negative Sentiment: Shareholder litigation and possible congressional scrutiny add legal and regulatory risks. Questions about Huang’s future also weigh on sentiment, as reports say NVIDIA has no clear public succession plan for its founder and long-serving CEO. Article: Nvidia’s CEO Turmoil Gives Democrats Fresh Ammunition for Oversight Article: Jensen Huang Affair Puts Nvidia’s Future at Risk

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.