NVIDIA (NASDAQ:NVDA) Stock Price Target Lowered at Citigroup

Key Points

• Citigroup lowered its NVIDIA price target from $315 to $285 but kept its Buy rating; the new target implies about 69.6% upside from the prior close.
• NVIDIA shares fell 5.9% to $168.06. Wall Street’s broader view remained positive, with a consensus Buy rating and average target of $318.75.
• The company reported quarterly earnings and revenue above estimates, with revenue more than doubling year over year, and authorized up to $150 billion in share repurchases. The article also flags governance and potential export-regulation concerns, while noting that some allegations remain unverified.

NVIDIA (NASDAQ:NVDA - Get Free Report) had its target price reduced by research analysts at Citigroup from $315.00 to $285.00 in a report issued on Tuesday, Benzinga reports. The brokerage presently has a "buy" rating on the computer hardware maker's stock. Citigroup's target price points to a potential upside of 69.59% from the company's previous close.

Several other equities research analysts have also weighed in on the company. Rosenblatt Securities reissued a "buy" rating and set a $390.00 target price on shares of NVIDIA in a research report on Tuesday, September 29th. Phillip Securities upped their price target on NVIDIA from $285.00 to $300.00 and gave the company a "buy" rating in a report on Monday, August 31st. Rothschild & Co Redburn increased their price target on shares of NVIDIA from $300.00 to $325.00 in a research note on Thursday, August 27th. Sanford C. Bernstein reissued an "outperform" rating on shares of NVIDIA in a report on Monday. Finally, President Capital boosted their price objective on shares of NVIDIA from $295.00 to $330.00 in a research report on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $318.75.

NVIDIA Stock Down 5.9%

Shares of NVDA stock traded down $10.61 on Tuesday, reaching $168.06. 289,792,143 shares of the stock were exchanged, compared to its average volume of 151,361,563. 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 business's 50 day moving average price is $219.03 and its 200 day moving average price is $204.50. The company has a market capitalization of $4.05 trillion, a price-to-earnings ratio of 21.27, a PEG ratio of 1.54 and a beta of 2.21. NVIDIA has a twelve month low of $164.27 and a twelve month high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results 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 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 revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.05 earnings per share. As a group, sell-side analysts expect that NVIDIA will post 9.30 earnings per share for the current fiscal year.

NVIDIA declared that its board has initiated 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. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, EVP Timothy S. Teter sold 30,460 shares of the firm's stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible 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 firm's stock in a transaction that occurred 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 in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. Company insiders own 3.94% of the company's stock.

Institutional Trading of NVIDIA

Large investors have recently bought and sold shares of the business. Intelligent Financial Strategies purchased a new stake in shares of NVIDIA during the third quarter worth approximately $26,000. Montgomery Financial Services LLC acquired a new position in NVIDIA in the 2nd quarter valued at $28,000. Newton One Investments LLC acquired a new position in NVIDIA in the 3rd quarter valued at $34,000. Phillip James Consulting Co. purchased a new position in NVIDIA during the 1st quarter worth $40,000. Finally, Bard Associates Inc. raised its position in NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock worth $54,000 after buying an additional 266 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Some analysts remain constructive despite the selloff: Wells Fargo maintained an “overweight” rating while lowering its price target, and Zacks cited oversold technical conditions and rising earnings estimates as possible support for a rebound. Zacks on potential trend reversal
• Positive Sentiment: Demand fundamentals remain a counterweight to the headlines: NVIDIA’s latest reported quarter beat earnings and revenue expectations, with revenue more than doubling year over year. A report also said TSMC delivered record sales, underscoring strength in the AI chip supply chain. TSMC AI growth report
• Neutral Sentiment: President Trump expressed support for Huang, but that does not resolve the company’s board inquiry or potential congressional scrutiny. Investors may look for more clarity at NVIDIA’s upcoming earnings report. Trump comments on Huang
• Negative Sentiment: The main concern is a widening governance and national-security controversy. NVIDIA’s board is investigating reports about Huang’s relationship with Alice Huang, whom U.S. officials reportedly suspect of ties to Chinese intelligence. Reports alleging that the relationship helped facilitate $7.5 billion in chip shipments to Chinese firms have not been independently verified; the allegations raise risks of regulatory action and renewed export restrictions. Report on chip probe and Huang scrutiny
• Negative Sentiment: Investors also face CEO succession uncertainty: coverage highlights NVIDIA’s dependence on Huang and a lack of a clearly communicated succession plan. Securities class-action litigation has been filed, adding another source of uncertainty. Coverage of succession risk
• Negative Sentiment: Analyst caution and competitive concerns add to pressure: Citi cited potential memory-cost-driven margin compression, while rivals’ AI chips and software developments could challenge NVIDIA’s position over time. Citi price-target and margin report

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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