NVIDIA (NASDAQ:NVDA) Shares Gap Down After Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA) shares gapped down before the market opened on Monday after Citigroup lowered their price target on the stock from $315.00 to $285.00. The stock had previously closed at $186.64, but opened at $173.07. Citigroup currently has a buy rating on the stock. NVIDIA shares last traded at $178.50, with a volume of 126,989,905 shares trading hands.

Other research analysts have also recently issued research reports about the company. Morgan Stanley set a $230.00 price target on NVIDIA in a research note on Friday, October 2nd. Zacks Research raised NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. HSBC lifted their price objective on NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. President Capital raised their price target on shares of NVIDIA from $295.00 to $330.00 in a report on Thursday, August 27th. Finally, Oppenheimer set a $315.00 price target on shares of NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus price target of $318.75.

Insider Buying and Selling at NVIDIA

In other news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. This represents a 1.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction that occurred 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 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 SEC filing for this sale provides additional information. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last three months. 3.94% of the stock is currently owned by company insiders.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Stronger-than-expected third-quarter results from AI cloud provider CoreWeave helped revive confidence in AI infrastructure spending and lifted sentiment toward chipmakers, including NVIDIA. Nvidia, CoreWeave, Marvell, Dell, Costco, and More Stocks That Explain Today’s Market
• Positive Sentiment: Analysts at Goldman Sachs and Royal Bank of Canada reaffirmed Buy or Outperform ratings, signaling that some on Wall Street continue to see value in NVIDIA despite the recent turmoil. Royal Bank Of Canada Reaffirms Outperform Rating for NVIDIA
• Negative Sentiment: Investor concern remains focused on the board’s investigation into Huang’s relationship with a woman U.S. intelligence agencies reportedly suspect of ties to Chinese intelligence. Reports alleging that the relationship helped facilitate shipments of restricted chips to China have not been independently verified; the allegations raise possible governance, export-control and regulatory risks. Nvidia shares rebound 4% as Huang faces scrutiny ahead of earnings
• Negative Sentiment: Shareholder securities-fraud litigation has added another source of uncertainty. Investors are also watching for potential leadership disruption, since Huang is viewed as central to NVIDIA’s strategy. NVDA Investors Have Opportunity to Lead NVIDIA Corporation Securities Fraud Lawsuit

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Edmond DE Rothschild Holding S.A. boosted its stake in shares of NVIDIA by 8.4% in the third quarter. Edmond DE Rothschild Holding S.A. now owns 1,667,870 shares of the computer hardware maker’s stock worth $380,908,000 after acquiring an additional 129,920 shares during the period. Beta Wealth Group Inc. lifted its holdings in NVIDIA by 5.3% in the 3rd quarter. Beta Wealth Group Inc. now owns 9,115 shares of the computer hardware maker’s stock worth $2,082,000 after purchasing an additional 458 shares in the last quarter. GW&K Investment Management LLC lifted its holdings in NVIDIA by 0.5% in the 3rd quarter. GW&K Investment Management LLC now owns 330,886 shares of the computer hardware maker’s stock worth $75,568,000 after purchasing an additional 1,609 shares in the last quarter. Minot DeBlois Advisors LLC lifted its holdings in NVIDIA by 5.1% in the 3rd quarter. Minot DeBlois Advisors LLC now owns 18,268 shares of the computer hardware maker’s stock worth $4,172,000 after purchasing an additional 880 shares in the last quarter. Finally, Private Wealth Asset Management LLC boosted its stake in NVIDIA by 225.2% in the 3rd quarter. Private Wealth Asset Management LLC now owns 185,746 shares of the computer hardware maker’s stock worth $42,421,000 after purchasing an additional 128,623 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

NVIDIA Stock Down 5.5%

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 50 day simple moving average of $217.99 and a two-hundred day simple moving average of $204.42. The firm has a market capitalization of $4.07 trillion, a P/E ratio of 21.36, a P/E/G ratio of 1.37 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data 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. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter last year, the business posted $1.05 earnings per share. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. On average, equities analysts predict that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders 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 is 12.64%.

NVIDIA declared that its board has approved a stock repurchase plan on Monday, September 28th that authorizes the company to repurchase $150 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Share buyback plans are typically a sign that the company’s board believes its stock is undervalued.

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.