Wells Fargo & Company Has Lowered Expectations for NVIDIA (NASDAQ:NVDA) Stock Price

NVIDIA (NASDAQ:NVDA) had its price objective decreased by stock analysts at Wells Fargo & Company from $315.00 to $300.00 in a note issued to investors on Tuesday, MarketBeat reports. The firm presently has an “overweight” rating on the computer hardware maker’s stock. Wells Fargo & Company‘s price target points to a potential upside of 67.91% from the stock’s previous close.

A number of other research analysts have also commented on NVDA. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of NVIDIA in a research note on Monday, August 31st. Melius Research cut their price objective on shares of NVIDIA from $420.00 to $315.00 and set a “buy” rating for the company in a research report on Monday, November 2nd. DA Davidson restated a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. China Renaissance upped their target price on NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, August 31st. Finally, Zacks Research upgraded NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Five analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus target price of $319.34.

NVIDIA Stock Performance

Shares of NASDAQ NVDA opened at $178.67 on Tuesday. 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 $4.31 trillion, a P/E ratio of 22.59, a P/E/G ratio of 1.54 and a beta of 2.21. NVIDIA has a 12 month low of $164.27 and a 12 month high of $243.37. The stock has a 50 day moving average of $219.03 and a 200-day moving average of $204.50.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings results 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 business had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the prior year, the business earned $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, equities research analysts predict that NVIDIA will post 9.30 EPS for the current year.

NVIDIA announced that its Board of Directors has initiated a share buyback program on Monday, September 28th that authorizes the company to buy back $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. Share buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 622,239 shares of the company’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 sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the 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 directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 worth $399,450,353 in the last 90 days. Company insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Several institutional investors and hedge funds have recently bought and sold shares of NVDA. Bridges Investment Management Inc. boosted its holdings in shares of NVIDIA by 8.7% in the 3rd quarter. Bridges Investment Management Inc. now owns 1,532,100 shares of the computer hardware maker’s stock valued at $349,901,000 after purchasing an additional 122,694 shares in the last quarter. Ironwood Investment Counsel LLC increased its stake in shares of NVIDIA by 0.4% in the 3rd quarter. Ironwood Investment Counsel LLC now owns 39,720 shares of the computer hardware maker’s stock valued at $9,071,000 after purchasing an additional 159 shares during the last quarter. Godfrey Financial Associates Inc. raised its holdings in shares of NVIDIA by 3.0% during the 3rd quarter. Godfrey Financial Associates Inc. now owns 10,412 shares of the computer hardware maker’s stock worth $2,378,000 after buying an additional 308 shares in the last quarter. Vawter Financial Ltd. acquired a new position in shares of NVIDIA during the 3rd quarter worth $818,000. Finally, Edgestream Partners L.P. acquired a new position in shares of NVIDIA during the 3rd quarter worth $45,140,000. Institutional investors own 65.27% of the company’s stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia announced an expanded collaboration with Autobrains to use its Alpamayo AI model in autonomous-driving systems, adding a commercial application for its AI technology. Autobrains partnership announcement
• Positive Sentiment: Some investors are buying the dip: Barron’s reported that Cathie Wood and other investors were purchasing shares as the stock steadied. A Wedbush analyst also argued Huang is unlikely to leave, while maintaining an outperform rating. Nvidia CEO Huang Gets More Bad News but Cathie Wood Keeps the Faith
• Neutral Sentiment: Nvidia’s November 17 earnings report is a near-term focus. Strong results could refocus attention on demand and growth; investors may also look for updates on the board investigation and leadership continuity. What to watch during Nvidia earnings
• Negative Sentiment: The main overhang is the board’s investigation into reports that Huang had a relationship with a woman U.S. intelligence suspects of having ties to Chinese intelligence. The situation is drawing congressional and FBI attention, raising concerns about governance, national security, China sales, and the company’s reliance on Huang. Huang’s alleged ties and Nvidia’s China problem
• Negative Sentiment: Shareholders have filed a lawsuit alleging Nvidia failed to disclose relevant risks, while Citi and Wells Fargo cut price targets Tuesday morning. Together, litigation exposure and analyst caution add pressure after Monday’s selloff. Shareholder lawsuit against Nvidia and Huang

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.