NVIDIA (NASDAQ:NVDA) Cut to "Hold" at Melius Research

Key Points

• Melius Research downgraded NVIDIA from Buy to Hold, setting a $185 price target that implies 6.49% upside from the previous close.
• Despite the downgrade, analysts’ average rating remains Moderate Buy, with an average price target of $298.18; views range from Hold to Buy and Strong Buy.
• NVIDIA beat quarterly estimates, reporting $2.22 earnings per share and $96.22 billion in revenue, up 105.9% year over year. The company also authorized a $150 billion share-repurchase program.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by Melius Research from a "buy" rating to a "hold" rating in a research note issued on Thursday, Marketbeat Ratings reports. They presently have a $185.00 price objective on the computer hardware maker's stock. Melius Research's price objective would suggest a potential upside of 6.49% from the company's previous close.

NVDA has been the subject of several other research reports. Citigroup lowered their price target on shares of NVIDIA from $315.00 to $285.00 and set a "buy" rating for the company in a report on Tuesday. Evercore lowered shares of NVIDIA from an "outperform" rating to a "positive" rating and set a $186.00 price objective on the stock. in a report on Wednesday. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 price objective on shares of NVIDIA in a research report on Wednesday, October 21st. DZ Bank reiterated a "buy" rating on shares of NVIDIA in a research note on Wednesday, August 26th. Finally, Stifel Nicolaus set a $205.00 target price on NVIDIA in a report on Thursday. Five research analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, NVIDIA currently has an average rating of "Moderate Buy" and an average price target of $298.18.

NVIDIA Price Performance

NVDA stock opened at $173.73 on Thursday. 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 firm has a market capitalization of $4.19 trillion, a P/E ratio of 21.96, a P/E/G ratio of 1.30 and a beta of 2.21. The business's 50-day moving average is $217.12 and its two-hundred day moving average is $204.35. NVIDIA has a 1 year low of $164.27 and a 1 year high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping 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 during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the company posted $1.05 earnings per share. The business's revenue for the quarter was up 105.9% on a year-over-year basis. Analysts anticipate that NVIDIA will post 9.30 earnings per share for the current fiscal year.

NVIDIA declared that its Board of Directors has initiated a stock repurchase program on Monday, September 28th that permits the company to buy back $150 billion in outstanding shares. This buyback authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share buyback programs are generally an indication that the company's board believes its shares are undervalued.

Insider Transactions at NVIDIA

In other 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 value of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares of the company's stock, 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 is accessible through this link. Also, CFO Colette Kress sold 34,918 shares of the business's 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 completion of the sale, the chief financial officer directly owned 765,103 shares of the company's stock, valued at $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company's stock.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Intelligent Financial Strategies acquired a new stake in NVIDIA during the 3rd quarter worth approximately $26,000. Montgomery Financial Services LLC acquired a new position in shares of NVIDIA during the 2nd quarter worth $28,000. Newton One Investments LLC purchased a new position in shares of NVIDIA in the 3rd quarter valued at about $34,000. Phillip James Consulting Co. purchased a new position in shares of NVIDIA in the 1st quarter valued at about $40,000. Finally, Bard Associates Inc. lifted its stake in shares of NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock valued at $54,000 after purchasing an additional 266 shares during the period. Hedge funds and other institutional investors own 65.27% of the company's stock.

More NVIDIA News

These are some of the NVDA news items that stood out recently:

• Positive Sentiment: Underlying AI demand offers a counterpoint: strong results and an upbeat outlook from Nvidia customer CoreWeave were cited as evidence that spending on AI infrastructure remains robust. Article: Great News for Nvidia, Micron, Broadcom, and AMD Stock Investors
• Negative Sentiment: The allegations have revived scrutiny of whether restricted Nvidia AI chips reached China and prompted calls for tighter export controls; Congress is also reportedly preparing to question Huang. Any policy response could threaten sales opportunities and increase compliance risk. Article: Huang scandal revives push to tighten China chip curbs
• Negative Sentiment: The turmoil is spilling into the broader AI trade: Nvidia-linked companies have weakened, while some investors have shifted toward chipmaking rivals. Article: Nasdaq futures fall as Nvidia turmoil rattles AI stocks

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.

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