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

NVIDIA (NASDAQ:NVDA) was downgraded by equities researchers at StoneX from a “buy” rating to a “hold” rating in a note issued to investors on Thursday, Benzinga reports.

Several other research analysts have also weighed in on the stock. Zacks Research raised shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. DA Davidson reaffirmed a “buy” rating and set a $300.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Oppenheimer cut shares of NVIDIA from an “outperform” rating to a “market perform” rating in a research report on Thursday. William Blair downgraded NVIDIA from an “outperform” rating to a “market perform” rating in a research note on Thursday. Finally, BNP Paribas Exane reissued an “outperform” rating and issued a $345.00 price objective on shares of NVIDIA in a report on Monday, October 5th. Five analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA currently has an average rating of “Moderate Buy” and an average price target of $296.22.

NVIDIA Stock Down 5.5%

Shares of NVDA stock traded down $9.51 during mid-day trading on Thursday, reaching $164.22. 384,911,738 shares of the company were exchanged, compared to its average volume of 153,721,203. NVIDIA has a fifty-two week low of $148.80 and a fifty-two week high of $243.37. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company has a market capitalization of $3.96 trillion, a P/E ratio of 20.77, a P/E/G ratio of 1.30 and a beta of 2.21. The business’s 50 day simple moving average is $217.12 and its 200 day simple moving average is $204.35.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results 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 business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.05 earnings per share. Research analysts predict that NVIDIA will post 9.30 earnings per share for the current year.

NVIDIA announced that its board has initiated a share repurchase plan on Monday, September 28th that authorizes the company to buy back $150 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In related news, CFO Colette Kress sold 34,918 shares of the stock in a transaction dated Thursday, September 17th. The shares were 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 $167,595,812.15. This trade represents a 4.36% decrease in their position. The transaction 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, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction dated Friday, September 4th. The shares were 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 owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Intelligent Financial Strategies acquired a new position in shares of NVIDIA during the third quarter worth approximately $26,000. Montgomery Financial Services LLC acquired a new stake in NVIDIA in the second quarter worth about $28,000. Langley Wealth Management LLC bought a new position in NVIDIA in the 2nd quarter valued at about $34,000. Newton One Investments LLC bought a new position in NVIDIA in the 3rd quarter valued at about $34,000. Finally, Phillip James Consulting Co. acquired a new position in NVIDIA during the 1st quarter valued at about $40,000. 65.27% of the stock is owned by institutional investors and hedge funds.

Latest NVIDIA News

Investors following NVDA have been watching these news items:

• Positive Sentiment: Some analysts still see upside despite cutting expectations. Cantor Fitzgerald lowered its price target to $250 but maintained an “overweight” rating. Cantor Fitzgerald rating
• Neutral Sentiment: NVIDIA named CFO Colette Kress interim CEO and appointed Harvey C. Jones board chair after Huang resigned effective immediately. Kress’s familiarity with the business may help manage the transition, but the company has not yet established a permanent succession plan. NVIDIA announces CEO transition
• Negative Sentiment: Huang’s departure follows reports of board scrutiny over alleged relationships, including one involving a woman suspected of links to Chinese intelligence. The allegations have prompted concerns about governance and whether the company could lose a founder closely associated with its strategy and AI success. Reuters report on Huang stepping down

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.