NVIDIA (NASDAQ:NVDA) Given New $240.00 Price Target at BMO Capital Markets

Key Points

• BMO Capital Markets cut its NVIDIA price target from $340 to $240 but maintained an “outperform” rating, implying 45.56% upside from the prior close. Analysts’ consensus rating is “Moderate Buy,” with an average target of $292.20.
• NVIDIA shares fell 5.1% on Thursday to $164.88. The company’s latest quarterly results beat estimates, with EPS of $2.22 and revenue of $96.22 billion, up 105.9% year over year.
• The board approved a $150 billion share-repurchase program, authorizing buybacks of up to 2.8% of outstanding shares. Recent coverage also highlighted leadership-transition uncertainty and pressure from analyst caution and chip rivals.

NVIDIA (NASDAQ:NVDA - Get Free Report) had its target price lowered by BMO Capital Markets from $340.00 to $240.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has an "outperform" rating on the computer hardware maker's stock. BMO Capital Markets's price objective points to a potential upside of 45.56% from the company's previous close.

NVDA has been the subject of a number of other research reports. Wells Fargo & Company reduced their target price on NVIDIA from $315.00 to $300.00 and set an "overweight" rating for the company in a research note on Tuesday. President Capital increased their price objective on NVIDIA from $295.00 to $330.00 in a report on Thursday, August 27th. Needham & Company LLC reduced their price objective on NVIDIA from $300.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday. Deutsche Bank reaffirmed a "buy" rating on shares of NVIDIA in a report on Monday, August 31st. Finally, Rothschild & Co Redburn upped their target price on NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, NVIDIA currently has a consensus rating of "Moderate Buy" and an average price target of $292.20.

NVIDIA Stock Down 5.1%

Shares of NVDA stock traded down $8.86 during trading hours on Thursday, reaching $164.88. 503,974,024 shares of the company's stock were exchanged, compared to its average volume of 154,375,063. NVIDIA has a 1 year low of $148.80 and a 1 year high of $243.37. The stock has a market cap of $3.97 trillion, a PE ratio of 20.86, a PEG ratio of 1.30 and a beta of 2.21. 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 stock's fifty day moving average price is $217.12 and its two-hundred day moving average price is $204.35.

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, beating the consensus estimate of $2.09 by $0.13. The firm 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%. NVIDIA's revenue was up 105.9% on a year-over-year basis. During the same period last year, the firm posted $1.05 EPS. Research analysts predict that NVIDIA will post 9.30 EPS for the current year.

NVIDIA announced that its Board of Directors has approved a share 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 purchase up to 2.8% of its stock through open market purchases. Share buyback programs are usually a sign that the company's board believes its shares are undervalued.

Insider Activity

In other news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the sale, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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 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 in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 in the last three months. 3.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

A number of large investors have recently bought and sold shares of NVDA. State Street Corp grew its position in shares of NVIDIA by 1.5% in the third quarter. State Street Corp now owns 1,025,075,347 shares of the computer hardware maker's stock valued at $234,355,574,000 after purchasing an additional 15,291,910 shares during the period. Bank of America Corp DE raised its position in shares of NVIDIA by 2.2% during the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker's stock worth $39,090,956,000 after purchasing an additional 4,165,875 shares during the last quarter. Amundi raised its position in shares of NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the last quarter. Deutsche Bank AG lifted its stake in NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker's stock valued at $18,399,108,000 after buying an additional 2,045,101 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in NVIDIA by 0.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock valued at $16,479,126,000 after buying an additional 555,221 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

Key Headlines Impacting NVIDIA

Here are a few of the latest headlines about NVDA:

• Positive Sentiment: NVIDIA says interim CEO and CFO Colette Kress, backed by the experienced leadership team, will maintain operations, customer commitments and the product roadmap while the board searches for a permanent CEO. The company’s Nov. 17 earnings report remains scheduled. NVIDIA announces CEO transition
• Neutral Sentiment: The board appointed Harvey C. Jones as its first chair and is considering internal and external candidates for a permanent CEO. These moves establish a transition process, but the eventual leadership choice and its strategic implications remain uncertain. NVIDIA interim leadership
• Negative Sentiment: Analyst caution and a rotation into chip rivals add pressure: StoneX downgraded NVIDIA to Hold, while reports described investors favoring Broadcom and AMD after Huang’s exit. Chip rivals gain after Huang’s exit

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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