NVIDIA (NASDAQ:NVDA) Stock Rating Lowered by Melius Research

NVIDIA (NASDAQ:NVDA) was downgraded by equities research analysts at Melius Research from a “buy” rating to a “hold” rating in a report issued on Thursday, MarketBeat Ratings reports. They presently have a $185.00 price objective on the computer hardware maker’s stock. Melius Research‘s price objective points to a potential upside of 6.49% from the company’s previous close.

Several other brokerages also recently issued reports on NVDA. Raymond James Financial upgraded NVIDIA from an “outperform” rating to a “strong-buy” rating in a research report on Wednesday. Benchmark reissued a “buy” rating and issued a $335.00 target price on shares of NVIDIA in a research note on Thursday, August 27th. HSBC boosted their target price on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. DZ Bank reaffirmed a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Finally, Weiss Ratings downgraded shares of NVIDIA from a “buy (b+)” rating to a “buy (b)” rating in a report on Monday, November 2nd. Five research analysts have rated the stock with a Strong Buy rating, forty-one have given a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA currently has an average rating of “Moderate Buy” and a consensus price target of $298.18.

NVIDIA Stock Performance

NASDAQ:NVDA opened at $173.73 on Thursday. 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 company has a market capitalization of $4.19 trillion, a P/E ratio of 21.96, a price-to-earnings-growth ratio of 1.30 and a beta of 2.21. The firm has a 50-day moving average price of $217.12 and a two-hundred day moving average price of $204.35. NVIDIA has a twelve month low of $164.27 and a twelve month high of $243.37.

NVIDIA (NASDAQ:NVDA) last announced 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 firm had revenue of $96.22 billion for 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%. NVIDIA’s quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.05 EPS. As a group, research analysts expect that NVIDIA will post 9.30 earnings per share for the current fiscal year.

NVIDIA declared that its Board of Directors has authorized a stock repurchase program on Monday, September 28th that permits the company to buy back $150 billion in shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Share repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Insider Activity

In other news, 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 value of $7,648,787.90. Following the completion of the sale, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 NVIDIA stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. This represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 in the last three months. Corporate insiders own 3.94% of the company’s stock.

Institutional Trading of NVIDIA

A number of hedge funds and other institutional investors have recently modified their holdings of NVDA. White Lighthouse Investment Management Inc. grew its stake in NVIDIA by 0.9% during the 3rd quarter. White Lighthouse Investment Management Inc. now owns 5,304 shares of the computer hardware maker’s stock valued at $1,211,000 after purchasing an additional 46 shares in the last quarter. Retirement Wealth Solutions LLC raised its position in shares of NVIDIA by 1.2% in the 2nd quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock valued at $825,000 after purchasing an additional 47 shares in the last quarter. LightSquare Wealth Management LLC raised its position in shares of NVIDIA by 0.3% in the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after purchasing an additional 49 shares in the last quarter. CWS Financial Advisors LLC raised its position in shares of NVIDIA by 3.1% in the 3rd quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker’s stock valued at $377,000 after purchasing an additional 49 shares in the last quarter. Finally, Defender Capital LLC. boosted its stake in shares of NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after buying an additional 50 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

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
• Neutral Sentiment: The board is reportedly weighing Huang’s future after reports of alleged personal relationships, including one with an Nvidia employee. The company has not confirmed that it plans to remove him; uncertainty over succession is central to the market reaction. Article: A dark day for Nvidia: Analysts react as markets await news on Huang’s fate
• Negative Sentiment: The turmoil is spilling into the broader AI trade: Nvidia-linked companies have weakened, while some investors have shifted toward chipmaking rivals. Article: Nasdaq futures fall as Nvidia turmoil rattles AI stocks

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.