NVIDIA (NASDAQ:NVDA) Stock Gets Price Target Trim from Needham & Company LLC

Key Points

• Needham cut NVIDIA’s price target from $300 to $200 but maintained a Buy rating; the new target implies 21.78% upside from the prior close.
• Other analysts also lowered targets, though NVIDIA retains a Moderate Buy consensus and a $296.22 average price target. Shares fell 5.5% to $164.22 on Thursday.
• NVIDIA’s latest reported quarter beat earnings and revenue expectations, with revenue up 105.9% year over year. The company has also authorized a $150 billion share-buyback plan.

NVIDIA (NASDAQ:NVDA - Get Free Report) had its target price reduced by investment analysts at Needham & Company LLC from $300.00 to $200.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the computer hardware maker's stock. Needham & Company LLC's price target indicates a potential upside of 21.78% from the stock's previous close.

A number of other analysts have also recently issued reports on NVDA. Cantor Fitzgerald lowered their target price on NVIDIA from $350.00 to $250.00 and set an "overweight" rating for the company in a research note on Thursday. Weiss Ratings lowered shares of NVIDIA from a "buy (b+)" rating to a "buy (b)" rating in a research note on Monday, November 2nd. BNP Paribas Exane reiterated an "outperform" rating and issued a $345.00 price target on shares of NVIDIA in a report on Monday, October 5th. Wells Fargo & Company reduced their price target on shares of NVIDIA from $315.00 to $300.00 and set an "overweight" rating for the company in a report on Tuesday. Finally, Wall Street Zen downgraded shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 24th. Five analysts have rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $296.22.

NVIDIA Trading Down 5.5%

Shares of NVIDIA stock traded down $9.51 during trading hours on Thursday, hitting $164.22. The company's stock had a trading volume of 384,911,738 shares, compared to its average volume of 153,721,203. The company has a market capitalization of $3.96 trillion, a PE ratio of 20.77, a price-to-earnings-growth ratio of 1.30 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock has a 50 day moving average of $217.12 and a 200 day moving average of $204.35. NVIDIA has a 12 month low of $148.80 and a 12 month high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data 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 return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion for the quarter, compared to analysts' expectations of $92.27 billion. During the same quarter in the previous year, the business posted $1.05 EPS. NVIDIA's revenue for the quarter was up 105.9% on a year-over-year basis. Analysts predict that NVIDIA will post 9.30 earnings per share for the current year.

NVIDIA announced that its Board of Directors has initiated a share buyback plan on Monday, September 28th that permits the company to buy back $150 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares of the company's stock, valued at $167,595,812.15. The trade was a 4.36% decrease in their position. The sale was disclosed in a 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 A. Stevens sold 622,239 shares of the stock in a transaction dated 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. This represents a 21.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company's stock.

Hedge Funds Weigh In On NVIDIA

Hedge funds have recently modified their holdings of the stock. Jupiter Topco LLC bought a new position in NVIDIA in the second quarter valued at approximately $16,156,076,000. Van ECK Associates Corp raised its stake 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. bought a new stake in shares of NVIDIA during the 3rd quarter worth approximately $3,921,459,000. State Street Corp raised 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 in the last quarter. Finally, Amundi boosted its holdings in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

Latest NVIDIA News

Here's some of the latest news about NVDA:

• Positive Sentiment: Demand for AI infrastructure remains a counterweight to the company-specific turmoil: CoreWeave’s strong results and outlook helped reassure investors that data-center spending is holding up. NVIDIA is also due to report fiscal third-quarter results on Nov. 17. CoreWeave earnings and Nvidia rebound
• Positive Sentiment: Some analysts still see upside despite cutting expectations. Cantor Fitzgerald lowered its price target to $250 but maintained an “overweight” rating. Cantor Fitzgerald rating
• Negative Sentiment: Huang’s departure follows reports of board scrutiny over alleged relationships, including one involving a woman suspected of links to Chinese intelligence. The allegations have prompted concerns about governance and whether the company could lose a founder closely associated with its strategy and AI success. Reuters report on Huang stepping down

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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