NVIDIA (NASDAQ:NVDA) Stock Dropped to "Hold" by Truist Financial

Key Points

• Truist Financial downgraded NVIDIA from “buy” to “hold” and set a $174 price target, implying about 6% upside from the prior close.
• NVIDIA shares fell 5.5% to $164.15 on Thursday. Despite the downgrade, analysts’ average rating remained “Moderate Buy,” with a consensus price target of $283.63.
• NVIDIA beat quarterly earnings and revenue estimates, with revenue up 105.9% year over year, and authorized a $150 billion share buyback.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by analysts at Truist Financial from a "buy" rating to a "hold" rating in a report released on Thursday, Briefing.com reports. They currently have a $174.00 price target on the computer hardware maker's stock. Truist Financial's price objective would indicate a potential upside of 6.00% from the stock's previous close.

A number of other equities research analysts also recently commented on NVDA. Wedbush set a $345.00 price objective on shares of NVIDIA and gave the company an "outperform" rating in a research report on Thursday. Stifel Nicolaus set a $205.00 price objective on shares of NVIDIA and gave the stock a "buy" rating in a research report on Thursday. KGI Securities boosted their target price on shares of NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Bank of America dropped their target price on NVIDIA from $350.00 to $280.00 and set a "buy" rating on the stock in a report on Thursday. Finally, Jefferies Financial Group assumed coverage on NVIDIA in a research note on Wednesday. They issued a "hold" rating on the stock. Five equities research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $283.63.

NVIDIA Stock Down 5.5%

Shares of NVDA traded down $9.58 during midday trading on Thursday, hitting $164.15. The company had a trading volume of 639,223,110 shares, compared to its average volume of 155,038,781. The company's 50-day simple moving average is $217.12 and its 200-day simple moving average is $204.35. 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 firm 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. NVIDIA has a 1 year low of $148.80 and a 1 year high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping 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 firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period in the prior year, the firm earned $1.05 earnings per share. The business's quarterly revenue was up 105.9% compared to the same quarter last year. As a group, sell-side analysts expect that NVIDIA will post 9.30 EPS for the current year.

NVIDIA announced that its board has authorized a stock buyback plan on Monday, September 28th that permits the company to repurchase $150 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Share repurchase plans are often a sign that the company's management believes its shares are undervalued.

Insider Activity

In other news, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at $598,810,648. The trade was a 1.12% decrease in their position. The sale 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, Director Mark Stevens sold 622,239 shares of the company's stock in a transaction on 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 of the company's stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. 3.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Boyd Wealth Management LLC increased its position in shares of NVIDIA by 273.4% in the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock worth $1,830,000 after acquiring an additional 6,696 shares in the last quarter. Ally Financial Inc. lifted its holdings in shares of NVIDIA by 10.3% during the 2nd quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock valued at $34,415,000 after acquiring an additional 16,000 shares in the last quarter. Altshuler Shaham Ltd lifted its holdings in shares of NVIDIA by 6,451.9% during the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock valued at $111,134,000 after acquiring an additional 627,510 shares in the last quarter. Vanguard Capital Wealth Advisors lifted its holdings in shares of NVIDIA by 5.6% during the 2nd quarter. Vanguard Capital Wealth Advisors now owns 52,163 shares of the computer hardware maker's stock valued at $10,437,000 after acquiring an additional 2,758 shares in the last quarter. Finally, Baker Tilly Wealth Management LLC boosted its position in NVIDIA by 7.4% during the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock worth $14,386,000 after purchasing an additional 4,958 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

Top NVIDIA Stories

Investors following NVDA have been watching these stories:

• Neutral Sentiment: CFO Colette Kress is interim CEO while the board searches for a permanent successor; NVIDIA says operations, customer commitments and its product roadmap should continue without interruption. NVIDIA announces CEO transition
• Negative Sentiment: Huang’s departure after 33 years raises key-person and succession risks for a company whose strategy and public profile were closely associated with its co-founder. Reports of alleged relationships—including one involving a woman accused of ties to Chinese intelligence—have also brought scrutiny and congressional attention. Coverage of turmoil at NVIDIA
• Negative Sentiment: Investors are also weighing whether customers could shift orders to chip rivals amid the uncertainty. AMD and Broadcom rallied as NVIDIA weakened, underscoring the risk of competitors gaining opportunities. Rivals rally amid NVIDIA selling

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.

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