NVIDIA (NASDAQ:NVDA) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded NVIDIA from “strong-buy” to “hold,” even though most other analysts remain bullish on the stock.
• NVIDIA’s latest quarterly results were strong, with $1.87 EPS and $81.62 billion in revenue, both ahead of estimates, while revenue jumped 85.2% year over year.
• The company also authorized an $80 billion share buyback, signaling confidence in future cash generation, while the stock traded down 1.9% on Thursday.

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

Other research analysts have also issued research reports about the stock. Evercore restated an "outperform" rating and set a $413.00 price target (up from $352.00) on shares of NVIDIA in a research note on Thursday. Wolfe Research restated an "outperform" rating and set a $275.00 price target on shares of NVIDIA in a research note on Thursday. Rosenblatt Securities restated a "buy" rating and set a $325.00 price target on shares of NVIDIA in a research note on Thursday. Jefferies Financial Group restated a "buy" rating and set a $300.00 price target (up from $275.00) on shares of NVIDIA in a research note on Thursday. Finally, The Goldman Sachs Group restated a "buy" rating and set a $285.00 price target (up from $250.00) on shares of NVIDIA in a research note on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $303.27.

NVIDIA Trading Down 1.9%

NASDAQ NVDA opened at $215.33 on Thursday. The company has a quick ratio of 3.24, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm has a market cap of $5.21 trillion, a PE ratio of 32.98, a price-to-earnings-growth ratio of 0.68 and a beta of 2.25. The company has a 50 day moving average price of $196.10 and a 200 day moving average price of $189.06. NVIDIA has a 52 week low of $129.16 and a 52 week high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.62 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. NVIDIA's revenue was up 85.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.81 EPS. As a group, sell-side analysts forecast that NVIDIA will post 7.88 EPS for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, Director John Dabiri sold 3,004 shares of NVIDIA stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $184.90, for a total transaction of $555,439.60. Following the completion of the sale, the director directly owned 14,788 shares in the company, valued at $2,734,301.20. This trade represents a 16.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mark A. Stevens sold 221,682 shares of NVIDIA stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the sale, the director owned 7,399,771 shares of the company's stock, valued at approximately $1,285,192,227.28. This represents a 2.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 906,336 shares of company stock valued at $162,802,518. 4.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors have recently made changes to their positions in the stock. Diversified Enterprises LLC raised its stake in shares of NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker's stock worth $23,798,000 after purchasing an additional 39,129 shares during the last quarter. PMG Family Office LLC purchased a new stake in shares of NVIDIA in the third quarter worth approximately $2,150,000. Oak Ridge Investments LLC raised its stake in shares of NVIDIA by 2.2% in the third quarter. Oak Ridge Investments LLC now owns 970,860 shares of the computer hardware maker's stock worth $181,143,000 after purchasing an additional 20,559 shares during the last quarter. Weaver Capital Management LLC raised its stake in shares of NVIDIA by 5.5% in the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker's stock worth $15,893,000 after purchasing an additional 4,439 shares during the last quarter. Finally, Circle Wealth Management LLC raised its stake in shares of NVIDIA by 16.1% in the third quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker's stock worth $20,111,000 after purchasing an additional 14,936 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered a record quarter with massive revenue growth, strong guidance, and record data center sales. The Tech Download: What you might have missed in Nvidia's earnings — a $200 billion opportunity and edge computing
• Positive Sentiment: The company raised its dividend sharply and approved an $80 billion buyback, signaling confidence in future cash generation. Nvidia Just Raised Its Dividend By 2,400% -- and That Wasn't Even the Biggest News From Its Earnings Report
• Positive Sentiment: Wall Street remains broadly bullish, with multiple analysts raising price targets after earnings. Nvidia stock continues to struggle after earnings, but analysts remain firmly bullish
• Neutral Sentiment: Despite the strong report, the market seems to be digesting the results rather than rewarding them, suggesting investors may think the bar was already very high. Nvidia Stock Misses Out on Friday's Rally. Here's How Much Traders See It Moving Next Week
• Negative Sentiment: Some investors remain worried about valuation, competition, and the possibility that AI spending growth could slow from current extreme levels. Why Nvidia Stock Is Barely Moving After Earnings Crushed Expectations

NVIDIA Company Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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