NVIDIA (NASDAQ:NVDA) Trading Down 1.6% on Analyst Downgrade

Key Points

• NVIDIA shares fell 1.6% after Itau BBA Securities cut its price target from $256 to $218, with the stock trading as low as $192.13 during the session.
• Despite the pullback, analyst sentiment remains broadly positive: NVIDIA still carries an average “Buy” rating and a consensus price target of $303.84 from MarketBeat data.
• The company has also seen significant insider selling recently, including a large sale by director Mark A. Stevens, while NVIDIA continues to post strong fundamentals with earnings and revenue beating expectations last quarter.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) were down 1.6% on Thursday after Itau BBA Securities lowered their price target on the stock from $256.00 to $218.00. The company traded as low as $192.13 and last traded at $195.74. Approximately 148,267,388 shares traded hands during mid-day trading, a decline of 13% from the average session volume of 170,385,109 shares. The stock had previously closed at $199.00.

Several other equities analysts have also recently issued reports on the stock. Wall Street Zen upgraded shares of NVIDIA from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 23rd. President Capital boosted their price target on NVIDIA from $280.00 to $295.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Argus lifted their target price on shares of NVIDIA from $220.00 to $270.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. Raymond James Financial restated a "strong-buy" rating and issued a $330.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Finally, Royal Bank Of Canada set a $280.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, NVIDIA has an average rating of "Buy" and an average price target of $303.84.

Insider Buying and Selling

In other news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. 3.94% of the stock is owned by company insiders.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Micron’s blowout results are helping renew enthusiasm for AI infrastructure spending, which supports demand for NVIDIA’s GPUs and data-center ecosystem. Several articles frame the memory boom as evidence that AI capex remains strong.
• Positive Sentiment: Analyst commentary remains broadly bullish, with multiple firms maintaining Buy/Overweight ratings and price targets well above current levels, citing NVIDIA’s revenue growth, strong margins, and continued hyperscaler demand.
• Positive Sentiment: Fundamental updates remain strong: NVIDIA recently beat earnings expectations, raised its dividend, and authorized a large buyback, all of which reinforce confidence in cash generation and management’s view that shares are undervalued.
• Neutral Sentiment: Articles also continue to highlight NVIDIA’s long-term dominance in AI, including claims of a potential $1 trillion AI infrastructure opportunity by 2027 and expansion into networking, robotics, and software tools like BioNeMo.
• Negative Sentiment: The stock is being dragged by sector-wide concerns that AI spending may be cooling, with reports of slower HBM expansion at SK Hynix and broader worries about debt-funded AI capex hitting chip stocks across the group.
• Negative Sentiment: There is also some near-term headline risk from insider selling and legal news, including a major share sale by director Mark Stevens and a lawsuit involving AI training data, which may add to investor caution.

Institutional Trading of NVIDIA

A number of institutional investors have recently bought and sold shares of NVDA. Spectrum Financial Alliance Ltd LLC raised its holdings in NVIDIA by 3.8% in the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker's stock worth $243,000 after purchasing an additional 51 shares during the period. Presidio Capital Management LLC boosted its stake in NVIDIA by 0.4% during the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock worth $2,823,000 after purchasing an additional 53 shares during the last quarter. LMG Wealth Partners LLC boosted its position in NVIDIA by 0.7% during the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock worth $1,427,000 after acquiring an additional 53 shares during the last quarter. Vision Financial Markets LLC grew its position in shares of NVIDIA by 1.2% in the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock valued at $866,000 after purchasing an additional 53 shares in the last quarter. Finally, IMG Wealth Management Inc. grew its holdings in NVIDIA by 1.4% in the 3rd quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock valued at $713,000 after buying an additional 54 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Price Performance

The stock's fifty day moving average is $210.80 and its 200-day moving average is $192.91. The stock has a market cap of $4.74 trillion, a PE ratio of 29.98, a price-to-earnings-growth ratio of 0.45 and a beta of 2.22. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. During the same period last year, the business earned $0.81 earnings per share. The business's revenue for the quarter was up 85.2% on a year-over-year basis. As a group, equities analysts anticipate that NVIDIA Corporation will post 8.69 EPS for the current year.

NVIDIA Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be issued a dividend of $0.25 per share. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is presently 15.31%.

NVIDIA declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

About NVIDIA

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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