NVIDIA (NASDAQ:NVDA) Stock Gets Downgrade from Robert W. Baird

Key Points

• Robert W. Baird downgraded NVIDIA to Neutral from Outperform and cut its price target sharply from $500 to $200, implying 18.39% upside from the prior close.
• Other analysts remain more optimistic: NVIDIA has a consensus Buy rating and an average target of $312.87, with five Strong Buy and 47 Buy ratings versus three Holds.
• NVIDIA’s latest reported quarter beat estimates, with EPS of $2.22 and revenue of $96.22 billion, 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 analysts at Robert W. Baird from an "outperform" rating to a "neutral" rating in a report issued on Wednesday, MarketBeat reports. They presently have a $200.00 price target on the computer hardware maker's stock, down from their previous price target of $500.00. Robert W. Baird's target price would indicate a potential upside of 18.39% from the company's previous close.

Several other equities research analysts also recently weighed in on the company. Royal Bank Of Canada reissued an "outperform" rating and issued a $330.00 price objective on shares of NVIDIA in a report on Monday. UBS Group reissued a "buy" rating on shares of NVIDIA in a research report on Friday, October 9th. BMO Capital Markets set a $340.00 price objective on shares of NVIDIA and gave the stock an "outperform" rating in a research report on Thursday, August 20th. KeyCorp reaffirmed an "overweight" rating and issued a $330.00 target price on shares of NVIDIA in a report on Monday, August 24th. Finally, Daiwa Securities Group reduced their target price on shares of NVIDIA from $255.00 to $245.00 and set an "outperform" rating for the company in a report on Thursday, September 17th. Five investment analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $312.87.

NVIDIA Stock Down 5.5%

NVIDIA stock opened at $168.93 on Wednesday. The company has a market capitalization of $4.07 trillion, a P/E ratio of 21.36, a PEG ratio of 1.37 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The stock has a 50-day simple moving average of $217.99 and a 200-day simple moving average of $204.42.

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 (EPS) for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm's quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the business posted $1.05 EPS. Equities research analysts expect that NVIDIA will post 9.30 earnings per share for the current year.

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

Insider Activity at NVIDIA

In other NVIDIA news, EVP Timothy Teter sold 30,460 shares of the business's 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 approximately $598,810,648. The trade was a 1.12% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last three months. Insiders own 3.94% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Jupiter Topco LLC purchased a new position in NVIDIA in the second quarter worth $16,156,076,000. Van ECK Associates Corp boosted its position in shares of NVIDIA by 34.7% during the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker's stock worth $15,176,771,000 after purchasing an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of NVIDIA during the 3rd quarter worth $3,921,459,000. State Street Corp grew its stake in shares of NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker's stock worth $202,047,568,000 after purchasing an additional 15,897,836 shares during the period. Finally, Amundi grew its stake 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 period. 65.27% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Stronger-than-expected third-quarter results from AI cloud provider CoreWeave helped revive confidence in AI infrastructure spending and lifted sentiment toward chipmakers, including NVIDIA. Nvidia, CoreWeave, Marvell, Dell, Costco, and More Stocks That Explain Today's Market
• Positive Sentiment: Analysts at Goldman Sachs and Royal Bank of Canada reaffirmed Buy or Outperform ratings, signaling that some on Wall Street continue to see value in NVIDIA despite the recent turmoil. Royal Bank Of Canada Reaffirms Outperform Rating for NVIDIA
• Negative Sentiment: Investor concern remains focused on the board’s investigation into Huang’s relationship with a woman U.S. intelligence agencies reportedly suspect of ties to Chinese intelligence. Reports alleging that the relationship helped facilitate shipments of restricted chips to China have not been independently verified; the allegations raise possible governance, export-control and regulatory risks. Nvidia shares rebound 4% as Huang faces scrutiny ahead of earnings
• Negative Sentiment: Shareholder securities-fraud litigation has added another source of uncertainty. Investors are also watching for potential leadership disruption, since Huang is viewed as central to NVIDIA’s strategy. NVDA Investors Have Opportunity to Lead NVIDIA Corporation Securities Fraud Lawsuit

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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