NVIDIA (NASDAQ:NVDA) Stock Gets Downgrade from Stonex Financial

Key Points

• Stonex Financial downgraded NVIDIA from “strong buy” to “hold.” Other analysts were mixed, and the consensus remained “Moderate Buy,” with an average price target of $277.89.
• NVIDIA shares fell 2.0% Thursday to $162.85. BMO Capital Markets and Cantor Fitzgerald also cut their price targets, while keeping positive ratings.
• The company reported quarterly revenue of $96.22 billion and EPS of $2.22, both above analyst estimates, and authorized a share-repurchase plan of up to $150 billion.

NVIDIA (NASDAQ:NVDA - Get Free Report) was downgraded by equities researchers at Stonex Financial from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other analysts have also issued reports on NVDA. Zacks Research upgraded shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. BMO Capital Markets reduced their price objective on shares of NVIDIA from $340.00 to $240.00 and set an "outperform" rating on the stock in a research note on Thursday. William Blair lowered shares of NVIDIA from an "outperform" rating to a "market perform" rating in a report on Thursday. Cantor Fitzgerald decreased their price objective on shares of NVIDIA from $350.00 to $250.00 and set an "overweight" rating for the company in a report on Thursday. Finally, Mizuho set a $250.00 target price on shares of NVIDIA in a research report on Monday, November 9th. Five equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and fourteen have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $277.89.

NVIDIA Stock Down 2.0%

NVDA stock traded down $3.34 during midday trading on Thursday, hitting $162.85. 363,372,273 shares of the company's stock were exchanged, compared to its average volume of 196,617,360. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA has a 12-month low of $148.80 and a 12-month high of $243.37. The firm has a 50 day moving average price of $214.64 and a 200-day moving average price of $204.12. The stock has a market capitalization of $3.92 trillion, a price-to-earnings ratio of 20.59, a price-to-earnings-growth ratio of 1.28 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. NVIDIA's quarterly revenue was up 105.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.05 EPS. On average, analysts anticipate that NVIDIA will post 9.29 EPS for the current year.

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

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 622,239 shares of NVIDIA 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 transaction, the director directly 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. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the business's 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 approximately $598,810,648. This represents a 1.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company's stock.

Hedge Funds Weigh In On NVIDIA

A number of large investors have recently bought and sold shares of the business. White Lighthouse Investment Management Inc. boosted its holdings in NVIDIA by 0.9% in the third quarter. White Lighthouse Investment Management Inc. now owns 5,304 shares of the computer hardware maker's stock worth $1,211,000 after purchasing an additional 46 shares in the last quarter. Retirement Wealth Solutions LLC boosted its stake in shares of NVIDIA by 1.2% during the 2nd 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 in the last quarter. LightSquare Wealth Management LLC boosted its stake in shares of NVIDIA by 0.3% during the 2nd 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 in the last quarter. CWS Financial Advisors LLC boosted its stake in shares of NVIDIA by 3.1% during the 3rd 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 in the last quarter. Finally, Defender Capital LLC. increased its holdings in shares of NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock valued at $1,507,000 after acquiring an additional 50 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

Latest NVIDIA News

Investors following NVDA have been watching these news items:

• Neutral Sentiment: Investors are also being urged to judge AI demand by the revenue generated from computing capacity—not just the capital companies spend to build it. That could sharpen questions about how quickly AI infrastructure investments translate into sales. Barron's analysis of AI revenue
• Negative Sentiment: Huang’s departure creates uncertainty around succession and strategy. CFO Colette Kress is interim CEO, and the board has not yet selected a search firm for a permanent replacement. CEO search update
• Negative Sentiment: Reports connecting the leadership scandal to scrutiny of possible chip diversions to China have raised risks of regulatory action and reputational damage. The allegations remain under investigation, while U.S. lawmakers are seeking testimony. Congressional scrutiny

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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