NVIDIA (NASDAQ:NVDA) Cut to “Hold” at Aletheia Capital

Aletheia Capital cut shares of NVIDIA (NASDAQ:NVDA) from a buy rating to a hold rating in a research note released on Monday,FinViz reports.

Other equities research analysts have also issued reports about the company. Wall Street Zen lowered NVIDIA from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 24th. Morgan Stanley set a $230.00 price target on NVIDIA in a research note on Friday, October 2nd. Benchmark reaffirmed a “buy” rating and set a $335.00 target price on shares of NVIDIA in a research note on Thursday, August 27th. JPMorgan Chase & Co. upped their target price on NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a report on Thursday, August 27th. Finally, HSBC increased their target price on NVIDIA from $360.00 to $365.00 in a research report on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average target price of $314.24.

NVIDIA Price Performance

NASDAQ NVDA opened at $173.73 on Monday. The company has a market cap of $4.19 trillion, a PE ratio of 21.96, a price-to-earnings-growth ratio of 1.30 and a beta of 2.21. The firm’s 50-day simple moving average is $217.12 and its two-hundred day simple moving average is $204.35. NVIDIA has a 52 week low of $164.27 and a 52 week high of $243.37. 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 data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The company 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 earnings per share. Research analysts predict that NVIDIA will post 9.30 earnings per share for the current year.

NVIDIA Announces Dividend

The company also recently declared 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 yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.

NVIDIA declared that its board has approved a stock buyback program on Monday, September 28th that authorizes the company to repurchase $150 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Colette Kress sold 34,918 shares of the firm’s 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 approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the business’s 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 completion of the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. The trade was a 1.12% decrease in their position. 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 sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last 90 days. Insiders own 3.94% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

A number of large investors have recently modified their holdings of the business. Intelligent Financial Strategies purchased a new stake in shares of NVIDIA during the third quarter valued at $26,000. Montgomery Financial Services LLC acquired a new position in shares of NVIDIA in the 2nd quarter valued at $28,000. Newton One Investments LLC purchased a new position in NVIDIA in the 3rd quarter worth $34,000. Phillip James Consulting Co. purchased a new position in NVIDIA in the 1st quarter worth $40,000. Finally, Bard Associates Inc. raised its stake in NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after acquiring an additional 266 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Recent NVIDIA Headlines

Investors following NVDA have been watching these headlines:

• Positive Sentiment: Better-than-expected results from AI cloud provider CoreWeave revived confidence that data-center infrastructure spending remains strong, supporting demand for NVIDIA’s chips. Article: Nvidia rebounds as CoreWeave earnings reignite the AI trade
• Neutral Sentiment: Analyst views remain divided: Baird cut its rating to Neutral and sharply lowered its target, while Morgan Stanley retained an Overweight rating and a $300 target. Article: Analysts disagree on Nvidia
• Negative Sentiment: Competition may intensify as OpenAI reportedly plans more vertically integrated infrastructure, including its own chips, while Alphabet is advancing its TPU systems. Both developments could reduce reliance on NVIDIA over time. Article: Alphabet escalates AI chip rivalry

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.