NVIDIA (NASDAQ:NVDA) Reaches New 1-Year Low Following Analyst Downgrade

Key Points

• NVIDIA shares hit a new 52-week low after Cantor Fitzgerald cut its price target from $350 to $250, while maintaining an Overweight rating. The stock fell from a previous close of $173.73 and traded as low as $155.
• Despite the downgrade, analyst sentiment remained broadly positive: MarketBeat reported a “Moderate Buy” consensus and an average price target of $298.18, with 46 analysts rating the shares Buy or Strong Buy and nine rating them Hold.
• NVIDIA’s latest reported quarter beat expectations, with EPS of $2.22 versus $2.09 forecast and revenue up 105.9% year over year to $96.22 billion.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s share price hit a new 52-week low during trading on Thursday after Cantor Fitzgerald lowered their price target on the stock from $350.00 to $250.00. Cantor Fitzgerald currently has an overweight rating on the stock. NVIDIA traded as low as $155.00 and last traded at $152.25, with a volume of 64,833,336 shares traded. The stock had previously closed at $173.73.

NVDA has been the topic of several other reports. DZ Bank reiterated a "buy" rating on shares of NVIDIA in a report on Wednesday, August 26th. Royal Bank Of Canada restated an "outperform" rating and set a $330.00 price target on shares of NVIDIA in a report on Monday. Morgan Stanley reaffirmed an "overweight" rating and set a $300.00 price target on shares of NVIDIA in a research report on Wednesday. Benchmark reiterated a "buy" rating and issued a $335.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Finally, Deutsche Bank reiterated a "buy" rating on shares of NVIDIA in a research report on Monday, August 31st. Five equities research analysts have rated the stock with a Strong Buy rating, forty-one have given a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $298.18.

Insiders Place Their Bets

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of NVIDIA 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 completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction dated 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 sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last 90 days. 3.94% of the stock is owned by company insiders.

Top NVIDIA Stories

Investors following NVDA have been watching these stories:

• Neutral Sentiment: NVIDIA named CFO Colette Kress interim CEO and appointed Harvey C. Jones board chair after Huang resigned effective immediately. Kress’s familiarity with the business may help manage the transition, but the company has not yet established a permanent succession plan. NVIDIA announces CEO transition
• 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
• Negative Sentiment: Investors also face potential U.S. congressional scrutiny and tighter China chip-export restrictions, adding regulatory risk. Wall Street downgrades and price-target cuts—including moves to “sector weight,” “market perform” and “hold”—have reinforced the cautious outlook. Market coverage of Nvidia and leadership news

Institutional Trading of NVIDIA

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Jupiter Topco LLC acquired a new stake in shares of NVIDIA during the second quarter worth about $16,156,076,000. Van ECK Associates Corp grew its holdings in shares of NVIDIA by 34.7% in the second quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker's stock valued at $15,176,771,000 after purchasing an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of NVIDIA in the third quarter valued at approximately $3,921,459,000. State Street Corp increased its stake in 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 buying an additional 15,897,836 shares during the period. Finally, Amundi increased its stake in NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after buying an additional 12,575,177 shares during the period. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Stock Performance

The stock has a market capitalization of $3.83 trillion, a PE ratio of 19.81, a P/E/G ratio of 1.30 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The firm's 50 day moving average is $217.12 and its two-hundred day moving average is $204.35.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly 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. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. During the same quarter last year, the company posted $1.05 EPS. The firm's revenue was up 105.9% compared to the same quarter last year. As a group, research analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA's dividend payout ratio (DPR) is presently 12.64%.

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.