Barclays Has Lowered Expectations for NVIDIA (NASDAQ:NVDA) Stock Price

NVIDIA (NASDAQ:NVDA) had its target price lowered by stock analysts at Barclays from $275.00 to $210.00 in a research note issued on Friday, Marketbeat Ratings reports. The brokerage currently has an “overweight” rating on the computer hardware maker’s stock. Barclays‘s price target indicates a potential upside of 28.95% from the stock’s previous close.

NVDA has been the subject of several other reports. Bank of America lowered their price target on NVIDIA from $350.00 to $280.00 and set a “buy” rating for the company in a report on Thursday. HSBC lifted their price objective on NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Wednesday, August 26th. BNP Paribas Exane reissued an “outperform” rating and set a $345.00 target price on shares of NVIDIA in a research note on Monday, October 5th. Finally, Zacks Research raised NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Five research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and fourteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat, NVIDIA has a consensus rating of “Moderate Buy” and a consensus price target of $277.89.

NVIDIA Trading Down 2.0%

Shares of NVDA stock traded down $3.34 on Friday, hitting $162.85. The stock had a trading volume of 363,372,273 shares, compared to its average volume of 196,617,360. The company has a current ratio of 4.59, a quick ratio of 3.85 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 company has a fifty day moving average price of $214.64 and a two-hundred day moving average price of $204.12. The firm has a market cap of $3.92 trillion, a P/E ratio of 20.59, a PEG ratio of 1.28 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm’s revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the business posted $1.05 EPS. As a group, analysts forecast that NVIDIA will post 9.29 earnings per share for the current fiscal year.

NVIDIA declared that its board has authorized a stock repurchase program on Monday, September 28th that permits the company to repurchase $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. Share buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on 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 sale, the chief financial officer 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 position. The sale 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 Stevens sold 622,239 shares of the business’s 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 owned 2,336,531 shares in the company, valued at $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. Over the last three months, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is owned by corporate insiders.

Institutional Trading of NVIDIA

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp grew its holdings in shares of NVIDIA by 1.5% in the 3rd quarter. State Street Corp now owns 1,025,075,347 shares of the computer hardware maker’s stock valued at $234,355,574,000 after acquiring an additional 15,291,910 shares in the last quarter. Bank of America Corp DE increased its position in shares of NVIDIA by 2.2% in the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after acquiring an additional 4,165,875 shares during the last quarter. Amundi raised its holdings in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after acquiring an additional 12,575,177 shares in the last quarter. Deutsche Bank AG raised its holdings in NVIDIA by 2.3% during the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after acquiring an additional 2,045,101 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in NVIDIA by 0.6% during the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after acquiring an additional 555,221 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting NVIDIA

Here are a few of the latest stories about NVDA:

• Positive Sentiment: Investors will look to the November 17 earnings report for evidence that AI demand remains robust. Articles cite strong infrastructure spending and a $108 billion revenue outlook as potential supports for the business. NVIDIA earnings preview
• Negative Sentiment: Huang’s departure creates uncertainty around succession and strategy. CFO Colette Kress is interim CEO, and the board has not yet selected a search firm for a permanent replacement. CEO search update
• Negative Sentiment: Reports connecting the leadership scandal to scrutiny of possible chip diversions to China have raised risks of regulatory action and reputational damage. The allegations remain under investigation, while U.S. lawmakers are seeking testimony. Congressional scrutiny

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.