NVIDIA (NASDAQ:NVDA) Stock Gets Price Target Reduction from BMO Capital Markets

NVIDIA (NASDAQ:NVDA) had its target price cut by equities research analysts at BMO Capital Markets from $340.00 to $240.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has an “outperform” rating on the computer hardware maker’s stock. BMO Capital Markets‘s price objective would suggest a potential upside of 45.56% from the company’s current price.

Other analysts have also recently issued research reports about the stock. UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a research note on Friday, October 9th. Truist Financial boosted their target price on NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. Wedbush set a $345.00 price target on NVIDIA and gave the company an “outperform” rating in a research report on Thursday. DA Davidson reaffirmed a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a report on Monday. Five equities research analysts have rated the stock with a Strong Buy rating, forty-one have issued a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $292.20.

NVIDIA Price Performance

NASDAQ NVDA traded down $8.86 during mid-day trading on Thursday, hitting $164.88. The stock had a trading volume of 503,974,024 shares, compared to its average volume of 154,375,063. The firm’s 50 day moving average is $217.12 and its 200 day moving average is $204.35. 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 stock has a market capitalization of $3.97 trillion, a price-to-earnings ratio of 20.86, a PEG ratio of 1.30 and a beta of 2.21. NVIDIA has a twelve month low of $148.80 and a twelve month high of $243.37.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm’s quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.05 EPS. Equities research analysts forecast that NVIDIA will post 9.30 earnings per share for the current fiscal year.

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

Insider Activity at NVIDIA

In related news, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director directly 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. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Timothy Teter sold 30,460 shares of the stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. The trade was 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. Over the last three months, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

A number of hedge funds have recently modified their holdings of NVDA. Intelligent Financial Strategies purchased a new position in NVIDIA during the third quarter worth about $26,000. Montgomery Financial Services LLC acquired a new position in shares of NVIDIA in the 2nd quarter worth approximately $28,000. Newton One Investments LLC acquired a new position in shares of NVIDIA in the 3rd quarter worth approximately $34,000. Phillip James Consulting Co. acquired a new position in shares of NVIDIA in the 1st quarter worth approximately $40,000. Finally, Bard Associates Inc. boosted its position in shares of NVIDIA by 8,866.7% during the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after purchasing an additional 266 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA News Summary

These are some of the NVDA news items that stood out recently:

• Positive Sentiment: NVIDIA says interim CEO and CFO Colette Kress, backed by the experienced leadership team, will maintain operations, customer commitments and the product roadmap while the board searches for a permanent CEO. The company’s Nov. 17 earnings report remains scheduled. NVIDIA announces CEO transition
• Neutral Sentiment: The board appointed Harvey C. Jones as its first chair and is considering internal and external candidates for a permanent CEO. These moves establish a transition process, but the eventual leadership choice and its strategic implications remain uncertain. NVIDIA interim leadership
• Negative Sentiment: Huang’s departure removes the leader closely associated with NVIDIA’s rise and leaves investors facing succession uncertainty. Reports tying the controversy to possible Chinese intelligence activity have also renewed national-security and export-control concerns, which could affect sentiment and the company’s business environment. Reuters on NVIDIA’s interim CEO

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.