NVIDIA (NASDAQ:NVDA) Sets New 12-Month Low Following Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA)’s share price reached a new 52-week low 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 trading hands. The stock had previously closed at $173.73.

A number of other research firms also recently commented on NVDA. China Renaissance increased their price objective on NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a report on Monday, August 31st. Raymond James Financial raised NVIDIA from an “outperform” rating to a “strong-buy” rating in a research report on Wednesday. Mizuho set a $250.00 target price on NVIDIA in a research note on Monday. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $330.00 price target on shares of NVIDIA in a report on Monday. Finally, Weiss Ratings lowered shares of NVIDIA from a “buy (b+)” rating to a “buy (b)” rating in a research note on Monday, November 2nd. Five equities research analysts have rated the stock with a Strong Buy rating, forty-one have assigned a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $298.18.

Insider Activity at NVIDIA

In other NVIDIA news, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction 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 transaction, the executive vice president directly 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 position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction 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 completion of the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last 90 days. 3.94% of the stock is owned by insiders.

Recent NVIDIA Headlines

Here are a few of the latest headlines about NVDA:

• Positive Sentiment: Demand for AI infrastructure remains a counterweight to the company-specific turmoil: CoreWeave’s strong results and outlook helped reassure investors that data-center spending is holding up. NVIDIA is also due to report fiscal third-quarter results on Nov. 17. CoreWeave earnings and Nvidia rebound
• 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: 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 Investors Weigh In On NVIDIA

Several hedge funds have recently made changes to their positions in NVDA. State Street Corp lifted its position in NVIDIA by 1.5% during the 3rd quarter. State Street Corp now owns 1,025,075,347 shares of the computer hardware maker’s stock worth $234,355,574,000 after acquiring an additional 15,291,910 shares during the period. Bank of America Corp DE increased its position in NVIDIA by 2.2% during the 2nd 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 purchasing an additional 4,165,875 shares during the period. Amundi increased its position 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 purchasing an additional 12,575,177 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of NVIDIA by 0.6% during 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 buying an additional 555,221 shares in the last quarter. Finally, Deutsche Bank AG raised its stake in shares of NVIDIA by 2.3% during 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 buying an additional 2,045,101 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Trading Down 8.5%

The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The business has a 50 day moving average price of $217.12 and a 200-day moving average price of $204.35. The firm 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.

NVIDIA (NASDAQ:NVDA) last posted 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. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the business earned $1.05 earnings per share. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. Analysts expect that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were issued a $0.25 dividend. 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 (DPR) is 12.64%.

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