NVIDIA (NASDAQ:NVDA) Shares Down 2% on Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA)’s share price traded down 2% during trading 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. 361,418,679 shares traded hands during mid-day trading, an increase of 131% from the average daily volume of 156,557,719 shares. The stock had previously closed at $166.19.

A number of other analysts have also recently weighed in on NVDA. KeyCorp cut shares of NVIDIA from an “overweight” rating to a “sector weight” rating in a report on Thursday. Mizuho set a $250.00 price target on shares of NVIDIA in a report on Monday. Aletheia Capital downgraded shares of NVIDIA from a “buy” rating to a “hold” rating in a research report on Monday. Benchmark reiterated a “buy” rating and set a $335.00 price objective on shares of NVIDIA in a research note on Thursday, August 27th. Finally, Piper Sandler assumed coverage on shares of NVIDIA in a report on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 target price on the stock. Five equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and thirteen have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $276.77.

Insider Activity at NVIDIA

In related news, 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 directly owned 2,687,660 shares in the company, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction dated 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 completion of 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last ninety days. 3.94% of the stock is currently owned by corporate insiders.

Trending Headlines about NVIDIA

These are some of the NVDA headlines that stood out recently:

• Neutral Sentiment: NVIDIA has not yet selected a search firm to find a permanent CEO; CFO Colette Kress remains interim chief. The board says operations and the product roadmap should continue uninterrupted, but investors may look to the November 17 earnings and guidance for evidence of stability. Nvidia hasn’t selected search firm for permanent Huang replacement
• 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.

Institutional Trading of NVIDIA

A number of institutional investors have recently made changes to their positions in the stock. Coign Capital Advisors LLC boosted its stake in shares of 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 grew its holdings 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 worth $10,186,000 after acquiring an additional 2,956 shares during the last quarter. State Board of Administration of Florida Retirement System raised its position in shares of NVIDIA by 7.5% during the third quarter. State Board of Administration of Florida Retirement System now owns 21,391,428 shares of the computer hardware maker’s stock worth $4,885,374,000 after purchasing an additional 1,491,722 shares during the period. 49 Wealth Management LLC raised its position in shares of NVIDIA by 246.9% during the third quarter. 49 Wealth Management LLC now owns 33,862 shares of the computer hardware maker’s stock worth $7,733,000 after purchasing an additional 24,102 shares during the period. Finally, Reliant Wealth Planning raised 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 period. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Stock Performance

The firm has a market capitalization of $3.92 trillion, a PE ratio of 20.59, a P/E/G ratio of 1.34 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. The firm has a fifty day moving average price of $215.96 and a 200 day moving average price of $204.25.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion during 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%. NVIDIA’s revenue for the quarter was up 105.9% on a year-over-year basis. During the same quarter last year, the company posted $1.05 EPS. Research analysts anticipate that NVIDIA Corporation will post 9.29 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.6%. NVIDIA’s dividend payout ratio is currently 12.64%.

NVIDIA declared that its Board of Directors has approved a stock repurchase program on Monday, September 28th that permits the company to repurchase $150 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock repurchase programs are usually an indication 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.