NVIDIA (NASDAQ:NVDA) Cut to "Market Perform" at William Blair

Key Points

• William Blair downgraded NVIDIA from “Outperform” to “Market Perform.” Other analysts were mixed, but MarketBeat reported an overall “Moderate Buy” consensus and an average price target of $298.18.
• NVIDIA beat quarterly expectations, reporting earnings of $2.22 per share and revenue of $96.22 billion; revenue rose 105.9% year over year.
• The board authorized a $150 billion share repurchase program, allowing NVIDIA to buy back up to 2.8% of its shares.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by equities research analysts at William Blair from an "outperform" rating to a "market perform" rating in a research note issued on Thursday, Marketbeat.com reports.

A number of other brokerages have also weighed in on NVDA. Phillip Securities boosted their target price on shares of NVIDIA from $285.00 to $300.00 and gave the stock a "buy" rating in a research note on Monday, August 31st. New Street Research restated a "buy" rating on shares of NVIDIA in a report on Thursday. Melius Research cut shares of NVIDIA from a "buy" rating to a "hold" rating and set a $185.00 price target for the company. in a report on Thursday. Aletheia Capital downgraded shares of NVIDIA from a "buy" rating to a "hold" rating in a research report on Monday. Finally, Benchmark reissued a "buy" rating and set a $335.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Five analysts have rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, NVIDIA has an average rating of "Moderate Buy" and a consensus price target of $298.18.

NVIDIA Stock Up 2.9%

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

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

NVIDIA announced that its Board of Directors has authorized a stock buyback program on Monday, September 28th that permits the company to buy back $150 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Share repurchase programs are typically a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company's stock.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently modified their holdings of the business. Intelligent Financial Strategies purchased a new stake in NVIDIA in the third quarter valued at approximately $26,000. Montgomery Financial Services LLC purchased a new stake in shares of NVIDIA in the 2nd quarter valued at about $28,000. Newton One Investments LLC acquired a new stake in NVIDIA during the 3rd quarter worth $34,000. Phillip James Consulting Co. purchased a new position in shares of NVIDIA in the 1st quarter valued at approximately $40,000. Finally, Bard Associates Inc. increased its stake in shares of NVIDIA by 8,866.7% during the second 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 period. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA News Roundup

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: Reports that the board may oust longtime CEO Huang have heightened key-person and succession concerns. Analysts have cut targets this week, including Wells Fargo and Citigroup, adding to investor caution. Article: Nvidia Stock Is Tumbling. What Happens Next If Huang Gets Ousted
• 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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