NVIDIA (NASDAQ:NVDA) Stock Price Target Lowered at Wells Fargo & Company

Key Points

• Wells Fargo cut NVIDIA’s price target from $315 to $300 but maintained an Overweight rating; the revised target implies 67.9% upside from the cited current price.
• Analyst sentiment remains broadly positive: MarketBeat reports a consensus Buy rating and average price target of $319.34.
• NVIDIA beat quarterly earnings and revenue estimates, with revenue up 105.9% year over year, while its shares fell 4.3% in Tuesday trading.

NVIDIA (NASDAQ:NVDA - Get Free Report) had its price target dropped by stock analysts at Wells Fargo & Company from $315.00 to $300.00 in a research note issued to investors on Tuesday, Marketbeat.com reports. The brokerage currently has an "overweight" rating on the computer hardware maker's stock. Wells Fargo & Company's price objective suggests a potential upside of 67.91% from the company's current price.

Several other brokerages also recently issued reports on NVDA. Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Benchmark reaffirmed a "buy" rating and issued a $335.00 target price on shares of NVIDIA in a research note on Thursday, August 27th. Oppenheimer set a $315.00 target price on shares of NVIDIA and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Mizuho set a $250.00 price target on shares of NVIDIA in a research note on Monday. Finally, UBS Group reissued a "buy" rating on shares of NVIDIA in a research note on Friday, October 9th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $319.34.

NVIDIA Trading Down 4.3%

NVDA stock opened at $178.67 on Tuesday. The business has a fifty day moving average price of $219.03 and a 200 day moving average price of $204.50. NVIDIA has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The stock has a market capitalization of $4.31 trillion, a price-to-earnings ratio of 22.59, a P/E/G ratio of 1.54 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.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping 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%. The business's revenue was up 105.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.05 earnings per share. Analysts expect that NVIDIA will post 9.30 EPS for the current fiscal year.

NVIDIA declared that its board has initiated a share repurchase plan on Monday, September 28th that allows the company to buy back $150 billion in shares. This buyback authorization allows the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on 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 completion of the sale, the chief financial officer owned 765,103 shares in the company, 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 Securities & Exchange Commission, 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 business'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 sale, the director directly 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 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 valued at $399,450,353. 3.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. White Lighthouse Investment Management Inc. increased its holdings in NVIDIA by 0.9% during 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 buying an additional 46 shares during the last quarter. Retirement Wealth Solutions LLC lifted its stake in NVIDIA by 1.2% in the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker's stock valued at $825,000 after acquiring an additional 47 shares during the last quarter. LightSquare Wealth Management LLC lifted its stake in NVIDIA by 0.3% in the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock valued at $3,741,000 after acquiring an additional 49 shares during the last quarter. CWS Financial Advisors LLC grew its position in shares of NVIDIA by 3.1% in the 3rd quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker's stock valued at $377,000 after acquiring an additional 49 shares during the period. Finally, Defender Capital LLC. grew its position in shares of NVIDIA by 0.7% in 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 period. Institutional investors and hedge funds own 65.27% of the company's stock.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Nvidia announced an expanded collaboration with Autobrains to use its Alpamayo AI model in autonomous-driving systems, adding a commercial application for its AI technology. Autobrains partnership announcement
• Positive Sentiment: Some investors are buying the dip: Barron’s reported that Cathie Wood and other investors were purchasing shares as the stock steadied. A Wedbush analyst also argued Huang is unlikely to leave, while maintaining an outperform rating. Nvidia CEO Huang Gets More Bad News but Cathie Wood Keeps the Faith
• Neutral Sentiment: Nvidia’s November 17 earnings report is a near-term focus. Strong results could refocus attention on demand and growth; investors may also look for updates on the board investigation and leadership continuity. What to watch during Nvidia earnings
• Negative Sentiment: The main overhang is the board’s investigation into reports that Huang had a relationship with a woman U.S. intelligence suspects of having ties to Chinese intelligence. The situation is drawing congressional and FBI attention, raising concerns about governance, national security, China sales, and the company’s reliance on Huang. Huang’s alleged ties and Nvidia’s China problem
• Negative Sentiment: Shareholders have filed a lawsuit alleging Nvidia failed to disclose relevant risks, while Citi and Wells Fargo cut price targets Tuesday morning. Together, litigation exposure and analyst caution add pressure after Monday’s selloff. Shareholder lawsuit against Nvidia and Huang

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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