NVIDIA (NASDAQ:NVDA) Shares Down 4.3% After Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA)’s stock price dropped 4.3% on Thursday after Truist Financial downgraded the stock from a buy rating to a hold rating. Truist Financial now has a $174.00 price target on the stock. NVIDIA traded as low as $148.80 and last traded at $166.19. Approximately 735,781,888 shares changed hands during mid-day trading, an increase of 373% from the average session volume of 155,564,891 shares. The stock had previously closed at $173.73.

Several other analysts also recently issued reports on NVDA. TD Cowen restated a “buy” rating on shares of NVIDIA in a report on Tuesday, August 18th. Mizuho set a $250.00 target price on shares of NVIDIA in a research report on Monday. Yorkville Ives started coverage on shares of NVIDIA in a research report on Tuesday, October 6th. They issued an “outperform” rating and a $300.00 target price on the stock. Royal Bank Of Canada set a $225.00 price target on shares of NVIDIA in a report on Thursday. Finally, Cantor Fitzgerald reduced their price target on shares of NVIDIA from $350.00 to $250.00 and set an “overweight” rating for the company in a research report on Thursday. Five research analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $283.63.

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were 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 of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Colette Kress sold 34,918 shares of the 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 sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. 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 90 days. 3.94% of the stock is currently owned by corporate insiders.

Latest NVIDIA News

Here’s some of the latest news about NVDA:

• Positive Sentiment: Long-term demand remains a potential support: hyperscalers are continuing large AI infrastructure investments, and analysts note that the data-center buildout does not depend on one executive. Some market commentators view the sell-off as a buying opportunity. Article: Checkmate for AI Chips? NVIDIA’s Crisis Opens the Board
• Neutral Sentiment: CFO Colette Kress was named interim CEO while the board searches for a permanent successor; Harvey C. Jones was appointed the company’s first board chair. Kress’s experience may help provide continuity, but the transition leaves questions about long-term leadership. NVIDIA says its product roadmap and customer commitments should continue without interruption. Article: NVIDIA Announces CEO Transition
• Neutral Sentiment: NVIDIA is scheduled to report fiscal third-quarter results on November 17. The report could provide investors with an important update on demand and guidance amid the leadership turmoil. Article: NVIDIA Gears Up for Q3 Earnings

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Boyd Wealth Management LLC increased its holdings in shares of NVIDIA by 273.4% during the 2nd quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock worth $1,830,000 after purchasing an additional 6,696 shares during the period. Ally Financial Inc. raised its position in shares of NVIDIA by 10.3% during the second quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker’s stock valued at $34,415,000 after buying an additional 16,000 shares during the last quarter. Altshuler Shaham Ltd lifted its stake in shares of NVIDIA by 6,451.9% in the first quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock valued at $111,134,000 after buying an additional 627,510 shares during the period. Vanguard Capital Wealth Advisors lifted its stake in shares of NVIDIA by 5.6% in the second quarter. Vanguard Capital Wealth Advisors now owns 52,163 shares of the computer hardware maker’s stock valued at $10,437,000 after buying an additional 2,758 shares during the period. Finally, Baker Tilly Wealth Management LLC grew its position in NVIDIA by 7.4% during the second quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker’s stock worth $14,386,000 after buying an additional 4,958 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Trading Down 4.3%

The firm has a market capitalization of $4.01 trillion, a price-to-earnings ratio of 21.01, a P/E/G ratio of 1.30 and a beta of 2.21. The business has a 50-day moving average of $217.12 and a two-hundred day moving average of $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 (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company’s quarterly revenue was up 105.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.05 earnings per share. Research analysts predict that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA Announces Dividend

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

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

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.