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

NVIDIA Corporation (NASDAQ:NVDA)’s stock price gapped down prior to trading 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.

NVDA has been the subject of a number of other reports. Truist Financial raised their price target on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a research note on Thursday, August 27th. Evercore set a $465.00 target price on NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Cantor Fitzgerald reiterated an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a research report on Thursday, October 1st. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of NVIDIA in a research report on Monday, August 31st. Finally, HSBC boosted their target price on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Five equities research 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’s stock. According to MarketBeat, NVIDIA presently has a consensus rating of “Buy” and an average price target of $318.75.

Insider Buying and Selling

In other NVIDIA news, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction dated 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 sale, the director 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction dated 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 of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their position. 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 ninety days. 3.94% of the stock is owned by insiders.

Key Headlines Impacting NVIDIA

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

Hedge Funds Weigh In On NVIDIA

Large investors have recently made changes to their positions in the company. Jupiter Topco LLC acquired a new stake in shares of NVIDIA in the second quarter valued at about $16,156,076,000. Van ECK Associates Corp raised its holdings in shares of NVIDIA by 34.7% during the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock valued at $15,176,771,000 after acquiring an additional 19,522,304 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of NVIDIA during the third quarter valued at approximately $3,921,459,000. State Street Corp lifted its position in shares of NVIDIA by 1.6% in the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after acquiring an additional 15,897,836 shares in the last quarter. Finally, Amundi boosted its stake in shares of NVIDIA by 10.4% in 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 during the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Price Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock has a market capitalization of $4.07 trillion, a price-to-earnings ratio of 21.36, a price-to-earnings-growth ratio of 1.37 and a beta of 2.21. The stock has a 50 day moving average price of $217.99 and a 200-day moving average price of $204.42.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data 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 company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the firm posted $1.05 EPS. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. On average, analysts forecast that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA announced 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 repurchase authorization authorizes the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share repurchase plans are generally a sign that the company’s board believes its shares are 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.