NVIDIA (NASDAQ:NVDA) Cut to Hold at StoneX

Key Points

• StoneX downgraded NVIDIA from Buy to Hold. Shares fell 5.5% Thursday to $164.22, though analysts overall remained positive, with a consensus “Moderate Buy” rating and a $296.22 target price.
• NVIDIA beat quarterly expectations, reporting adjusted earnings of $2.22 per share and revenue of $96.22 billion; revenue rose 105.9% year over year.
• The company approved a $150 billion share-repurchase plan, authorizing buybacks of up to 2.8% of its shares.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by StoneX from a "buy" rating to a "hold" rating in a research report issued on Thursday, Benzinga reports.

NVDA has been the subject of several other reports. DA Davidson restated a "buy" rating and set a $300.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. Truist Financial lifted their price objective on NVIDIA from $307.00 to $346.00 and gave the company a "buy" rating in a research note on Thursday, August 27th. Daiwa Securities Group reduced their price objective on NVIDIA from $255.00 to $245.00 and set an "outperform" rating on the stock in a research note on Thursday, September 17th. The Goldman Sachs Group reiterated a "buy" rating and set a $300.00 target price on shares of NVIDIA in a report on Monday. Finally, Raymond James Financial raised shares of NVIDIA from an "outperform" rating to a "strong-buy" rating in a research report on Wednesday. Five equities research analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $296.22.

NVIDIA Trading Down 5.5%

NVDA traded down $9.51 during midday trading on Thursday, hitting $164.22. The company's stock had a trading volume of 384,911,738 shares, compared to its average volume of 153,721,203. 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 firm has a market cap of $3.96 trillion, a P/E ratio of 20.77, a PEG ratio of 1.30 and a beta of 2.21. The firm has a 50-day moving average price of $217.12 and a two-hundred day moving average price of $204.35. NVIDIA has a 52-week low of $148.80 and a 52-week high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the prior year, the company posted $1.05 EPS. The company's quarterly revenue was up 105.9% compared to the same quarter last year. On average, research analysts anticipate that NVIDIA will post 9.30 earnings per share for the current year.

NVIDIA declared that its board has approved a stock 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 purchase up to 2.8% of its shares through open market purchases. Share repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, EVP Timothy Teter sold 30,460 shares of the company's 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 completion of the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the stock in a transaction dated Friday, September 4th. The shares were 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 owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last quarter. 3.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Institutional investors and hedge funds have recently bought and sold shares of the stock. White Lighthouse Investment Management Inc. boosted its position in NVIDIA by 0.9% in the 3rd quarter. White Lighthouse Investment Management Inc. now owns 5,304 shares of the computer hardware maker's stock valued at $1,211,000 after buying an additional 46 shares during the last quarter. Retirement Wealth Solutions LLC increased its position in shares of NVIDIA by 1.2% during the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker's stock worth $825,000 after acquiring an additional 47 shares during the last quarter. LightSquare Wealth Management LLC increased its position in shares of NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock worth $3,741,000 after acquiring an additional 49 shares during the last quarter. CWS Financial Advisors LLC increased its position in shares of NVIDIA by 3.1% during the third quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker's stock worth $377,000 after acquiring an additional 49 shares during the last quarter. Finally, Defender Capital LLC. lifted its stake in shares of NVIDIA by 0.7% in the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock worth $1,507,000 after acquiring an additional 50 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

Recent NVIDIA Headlines

These are some of the NVDA headlines that stood out recently:

• 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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.