NVIDIA (NASDAQ:NVDA) Cut to Hold at Stonex Financial

Stonex Financial downgraded shares of NVIDIA (NASDAQ:NVDA) from a strong-buy rating to a hold rating in a report issued on Thursday morning,Zacks reports.

Other analysts also recently issued reports about the stock. Needham & Company LLC lowered their price target on shares of NVIDIA from $300.00 to $200.00 and set a “buy” rating for the company in a research note on Thursday. Jefferies Financial Group began coverage on NVIDIA in a research note on Wednesday. They set a “hold” rating on the stock. HSBC downgraded NVIDIA from a “buy” rating to a “hold” rating and set a $170.00 price objective on the stock. in a report on Friday. DA Davidson lowered their target price on NVIDIA from $300.00 to $200.00 and set a “buy” rating for the company in a research note on Thursday. Finally, Wall Street Zen cut NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 24th. Five research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and fourteen have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $277.89.

NVIDIA Trading Down 2.0%

Shares of NVIDIA stock traded down $3.34 during trading on Thursday, reaching $162.85. The company’s stock had a trading volume of 363,372,273 shares, compared to its average volume of 196,617,360. NVIDIA has a 52-week low of $148.80 and a 52-week high of $243.37. 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. The firm’s 50-day moving average is $214.64 and its two-hundred day moving average is $204.12. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last released its earnings results 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. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter last year, the firm earned $1.05 EPS. On average, sell-side analysts anticipate that NVIDIA will post 9.29 earnings per share for the current year.

NVIDIA Dividend Announcement

The firm also recently disclosed 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 was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.6%. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA announced that its board has authorized a stock repurchase program 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 stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

Insider Transactions at NVIDIA

In other news, EVP Timothy Teter sold 30,460 shares of NVIDIA 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 trade represents a 1.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 business’s stock in a transaction that occurred on Friday, September 4th. The shares were 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 $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Ankerstar Wealth LLC raised its holdings in NVIDIA by 4.9% in the 3rd quarter. Ankerstar Wealth LLC now owns 7,308 shares of the computer hardware maker’s stock worth $1,671,000 after purchasing an additional 343 shares in the last quarter. Entropy Technologies LP lifted its position in shares of NVIDIA by 69.7% in the 3rd quarter. Entropy Technologies LP now owns 91,104 shares of the computer hardware maker’s stock worth $20,806,000 after purchasing an additional 37,413 shares during the period. Jump Financial LLC boosted its stake in shares of NVIDIA by 707.9% during the 3rd quarter. Jump Financial LLC now owns 510,703 shares of the computer hardware maker’s stock valued at $116,634,000 after purchasing an additional 447,493 shares in the last quarter. Flputnam Investment Management Co. boosted its stake in shares of NVIDIA by 11.5% during the 3rd quarter. Flputnam Investment Management Co. now owns 1,915,059 shares of the computer hardware maker’s stock valued at $437,361,000 after purchasing an additional 197,497 shares in the last quarter. Finally, Acorns Advisers LLC boosted its stake in shares of NVIDIA by 3.5% during the 3rd quarter. Acorns Advisers LLC now owns 159,437 shares of the computer hardware maker’s stock valued at $36,412,000 after purchasing an additional 5,435 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

More NVIDIA News

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

• 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
• Neutral Sentiment: Investors are also being urged to judge AI demand by the revenue generated from computing capacity—not just the capital companies spend to build it. That could sharpen questions about how quickly AI infrastructure investments translate into sales. Barron’s analysis of AI revenue
• 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.