NVIDIA (NASDAQ:NVDA) Stock Price Down 2% Following Analyst Downgrade

Key Points

• NVIDIA shares fell 2% to $162.85 after Rosenblatt Securities cut its price target from $390 to $300, while maintaining a Buy rating. Trading volume was about 131% above its average.
• Several firms also downgraded the stock, though analyst sentiment remained broadly positive: MarketBeat reported a “Moderate Buy” consensus and an average price target of $276.77.
• NVIDIA’s latest reported quarterly results beat estimates, with revenue up 105.9% year over year; the company also authorized a share-repurchase plan of up to $150 billion.

Shares of NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) fell 2% on Friday after Rosenblatt Securities lowered their price target on the stock from $390.00 to $300.00. Rosenblatt Securities currently has a buy rating on the stock. NVIDIA traded as low as $158.39 and last traded at $162.85. Approximately 361,418,679 shares traded hands during trading, an increase of 131% from the average daily volume of 156,557,719 shares. The stock had previously closed at $166.19.

Several other research firms have also recently weighed in on NVDA. Oppenheimer cut NVIDIA from an "outperform" rating to a "market perform" rating in a research note on Thursday. KeyCorp lowered NVIDIA from an "overweight" rating to a "sector weight" rating in a research note on Thursday. StoneX cut NVIDIA from a "buy" rating to a "hold" rating in a report on Thursday. William Blair downgraded NVIDIA from an "outperform" rating to a "market perform" rating in a research report on Thursday. Finally, Phillip Securities raised their price objective on NVIDIA from $285.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, August 31st. Five investment analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $276.77.

Insider Activity

In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the business's stock in a transaction that occurred on Friday, September 4th. The shares were 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 $541,187,310.22. The trade was a 21.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Timothy S. Teter sold 30,460 shares of the company'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 completion of the transaction, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. 3.94% of the stock is owned by company insiders.

Trending Headlines about NVIDIA

Investors following NVDA have been watching these headlines:

• Positive Sentiment: Some analysts still see substantial recovery potential: two reportedly set $300 price targets, while broader analyst coverage remains largely positive. Those forecasts offer a bullish counterpoint, although targets have also been cut sharply. 1 Wall Street Analyst Says Nvidia Will Double From Here. Are They Right?
• Negative Sentiment: Export-control and national-security scrutiny is intensifying after reports that restricted NVIDIA chips reached Chinese AI developers through intermediaries. Potentially tighter U.S. restrictions could complicate sales and weigh on the wider AI-chip sector; the allegations remain under investigation. Export-banned Nvidia chips are behind China's most powerful AI models
• Negative Sentiment: Analysts have been lowering price targets, and the leadership turmoil is weighing on AI-related shares more broadly. A pending securities class action adds another risk, though it does not establish wrongdoing. Wall Street Is Writing Off Nvidia Stock. Here's Why That's a Mistake.

Hedge Funds Weigh In On NVIDIA

A number of hedge funds have recently modified their holdings of the business. Coign Capital Advisors LLC grew its holdings in NVIDIA by 4.2% during the 3rd quarter. Coign Capital Advisors LLC now owns 8,260 shares of the computer hardware maker's stock worth $1,887,000 after acquiring an additional 331 shares in the last quarter. New World Advisors LLC raised its stake in shares of NVIDIA by 7.1% in the 3rd quarter. New World Advisors LLC now owns 44,599 shares of the computer hardware maker's stock valued at $10,186,000 after purchasing an additional 2,956 shares in the last quarter. State Board of Administration of Florida Retirement System raised its stake in shares of NVIDIA by 7.5% in the 3rd quarter. State Board of Administration of Florida Retirement System now owns 21,391,428 shares of the computer hardware maker's stock valued at $4,885,374,000 after purchasing an additional 1,491,722 shares in the last quarter. 49 Wealth Management LLC raised its stake in shares of NVIDIA by 246.9% in the 3rd quarter. 49 Wealth Management LLC now owns 33,862 shares of the computer hardware maker's stock valued at $7,733,000 after purchasing an additional 24,102 shares in the last quarter. Finally, Reliant Wealth Planning lifted its position in shares of NVIDIA by 123.6% during the third quarter. Reliant Wealth Planning now owns 5,906 shares of the computer hardware maker's stock worth $1,349,000 after purchasing an additional 3,265 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA Stock Down 2.0%

The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm's 50-day moving average price is $215.96 and its 200 day moving average price is $204.25. The firm has a market cap of $3.92 trillion, a P/E ratio of 20.59, a PEG ratio of 1.34 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the previous year, the company earned $1.05 earnings per share. NVIDIA's quarterly revenue was up 105.9% on a year-over-year basis. On average, equities research analysts expect that NVIDIA Corporation will post 9.29 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. 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 repurchase $150 billion in shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

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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