NVIDIA (NASDAQ:NVDA) Stock Gets Downgrade from Robert W. Baird

NVIDIA (NASDAQ:NVDA) was downgraded by equities researchers at Robert W. Baird from an “outperform” rating to a “neutral” rating in a note issued to investors on Wednesday, Marketbeat.com reports. They presently have a $200.00 price target on the computer hardware maker’s stock, down from their previous price target of $500.00. Robert W. Baird‘s price objective points to a potential upside of 18.39% from the stock’s current price.

Other analysts also recently issued reports about the company. Daiwa Securities Group decreased their target price on NVIDIA from $255.00 to $245.00 and set an “outperform” rating on the stock in a research report on Thursday, September 17th. Rosenblatt Securities restated a “buy” rating and issued a $390.00 price target on shares of NVIDIA in a research report on Tuesday, September 29th. Weiss Ratings cut NVIDIA from a “buy (b+)” rating to a “buy (b)” rating in a research report on Monday, November 2nd. JPMorgan Chase & Co. lifted their price target on NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a research note on Thursday, August 27th. Finally, Truist Financial lifted their price target on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned 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 a consensus target price of $312.87.

NVIDIA Price Performance

Shares of NASDAQ:NVDA opened at $168.93 on Wednesday. The business’s 50 day simple moving average is $217.99 and its 200-day simple moving average is $204.42. The firm has a market capitalization of $4.07 trillion, a price-to-earnings ratio of 21.36, a price-to-earnings-growth ratio of 1.37 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. NVIDIA has a 12 month low of $164.27 and a 12 month high of $243.37.

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, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the prior year, the firm posted $1.05 EPS. The company’s revenue was up 105.9% compared to the same quarter last year. As a group, equities analysts forecast that NVIDIA will post 9.30 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In other news, EVP Timothy S. Teter sold 30,460 shares of the company’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value 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. This represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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, CFO Colette Kress sold 34,918 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the sale, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Corporate insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. State Street Corp raised its position in shares of NVIDIA by 1.6% in the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after buying an additional 15,897,836 shares during the last quarter. Bank of America Corp DE boosted its position in NVIDIA by 2.2% during the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after acquiring an additional 4,165,875 shares during the last quarter. Amundi grew its stake in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after acquiring an additional 12,575,177 shares during the period. Deutsche Bank AG grew its stake in NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after acquiring an additional 2,045,101 shares during the period. Finally, Dimensional Fund Advisors LP grew its stake in NVIDIA by 0.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after acquiring an additional 555,221 shares during the period. Institutional investors and hedge funds own 65.27% of the company’s stock.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Stronger-than-expected third-quarter results from AI cloud provider CoreWeave helped revive confidence in AI infrastructure spending and lifted sentiment toward chipmakers, including NVIDIA. Nvidia, CoreWeave, Marvell, Dell, Costco, and More Stocks That Explain Today’s Market
• Positive Sentiment: Analysts at Goldman Sachs and Royal Bank of Canada reaffirmed Buy or Outperform ratings, signaling that some on Wall Street continue to see value in NVIDIA despite the recent turmoil. Royal Bank Of Canada Reaffirms Outperform Rating for NVIDIA
• Negative Sentiment: Investor concern remains focused on the board’s investigation into Huang’s relationship with a woman U.S. intelligence agencies reportedly suspect of ties to Chinese intelligence. Reports alleging that the relationship helped facilitate shipments of restricted chips to China have not been independently verified; the allegations raise possible governance, export-control and regulatory risks. Nvidia shares rebound 4% as Huang faces scrutiny ahead of earnings
• Negative Sentiment: Shareholder securities-fraud litigation has added another source of uncertainty. Investors are also watching for potential leadership disruption, since Huang is viewed as central to NVIDIA’s strategy. NVDA Investors Have Opportunity to Lead NVIDIA Corporation Securities Fraud Lawsuit

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.