NVIDIA (NASDAQ:NVDA) Stock Rating Lowered by HSBC

NVIDIA (NASDAQ:NVDA) was downgraded by stock analysts at HSBC from a “buy” rating to a “hold” rating in a report released on Friday, Marketbeat reports. They presently have a $170.00 price target on the computer hardware maker’s stock. HSBC‘s target price would indicate a potential upside of 4.39% from the stock’s current price.

NVDA has been the topic of several other reports. Weiss Ratings cut shares of NVIDIA from a “buy (b+)” rating to a “buy (b)” rating in a research report on Monday, November 2nd. Deutsche Bank reaffirmed a “buy” rating on shares of NVIDIA in a report on Monday, August 31st. Oppenheimer lowered NVIDIA from an “outperform” rating to a “market perform” rating in a research report on Thursday. Benchmark reissued a “buy” rating and set a $335.00 price objective on shares of NVIDIA in a research note on Thursday, August 27th. Finally, Morgan Stanley restated an “overweight” rating and set a $300.00 price objective on shares of NVIDIA in a research report on Wednesday. Five research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and fourteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $277.89.

NVIDIA Price Performance

NVIDIA stock traded down $3.34 during mid-day trading on Friday, reaching $162.85. 363,372,273 shares of the company’s stock traded hands, compared to its average volume of 196,617,360. NVIDIA has a 12-month low of $148.80 and a 12-month high of $243.37. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock has a 50 day moving average of $214.64 and a two-hundred day moving average of $204.12. The company has a market cap of $3.92 trillion, a price-to-earnings ratio of 20.59, a PEG ratio of 1.28 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the business earned $1.05 earnings per share. NVIDIA’s quarterly revenue was up 105.9% compared to the same quarter last year. Equities analysts forecast that NVIDIA will post 9.29 earnings per share for the current year.

NVIDIA declared that its Board of Directors has initiated a stock buyback plan on Monday, September 28th that allows the company to repurchase $150 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, EVP Timothy S. 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 sale, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through 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 the firm’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 sale, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,766,118 shares of company stock worth $399,450,353 over the last 90 days. Company insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Several hedge funds have recently bought and sold shares of the business. Jupiter Topco LLC bought a new stake in NVIDIA during the 2nd quarter valued at about $16,156,076,000. Van ECK Associates Corp boosted its position in NVIDIA by 34.7% in the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock valued at $15,176,771,000 after buying an additional 19,522,304 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in NVIDIA in the 3rd quarter worth about $3,921,459,000. State Street Corp grew its stake in NVIDIA by 1.6% in the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock worth $202,047,568,000 after acquiring an additional 15,897,836 shares in the last quarter. Finally, 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 in the last quarter. Institutional investors own 65.27% of the company’s stock.

Latest NVIDIA News

Here’s some of the latest news about NVDA:

• Positive Sentiment: Despite cutting its price target to $300, Rosenblatt Securities maintained a Buy rating; other coverage also points to continued investor optimism about NVIDIA’s long-term growth potential. Rosenblatt Securities rating
• Positive Sentiment: Investors will look to the November 17 earnings report for evidence that AI demand remains robust. Articles cite strong infrastructure spending and a $108 billion revenue outlook as potential supports for the business. NVIDIA earnings preview
• Negative Sentiment: Huang’s departure creates uncertainty around succession and strategy. CFO Colette Kress is interim CEO, and the board has not yet selected a search firm for a permanent replacement. CEO search update

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.