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

Truist Financial downgraded shares of NVIDIA (NASDAQ:NVDA) from a buy rating to a hold rating in a research report released on Thursday morning, Marketbeat Ratings reports. They currently have $174.00 price objective on the computer hardware maker’s stock, down from their prior price objective of $346.00.

Several other research analysts have also recently issued reports on the stock. Weiss Ratings cut shares of NVIDIA from a “buy (b+)” rating to a “buy (b)” rating in a report on Monday, November 2nd. KGI Securities raised their price objective on shares of NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Aletheia Capital cut NVIDIA from a “buy” rating to a “hold” rating in a report on Monday, November 9th. Stifel Nicolaus set a $205.00 target price on NVIDIA and gave the stock a “buy” rating in a report on Thursday. Finally, Robert W. Baird downgraded NVIDIA from an “outperform” rating to a “neutral” rating and cut their target price for the stock from $500.00 to $200.00 in a research report on Wednesday. Five equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and thirteen have given a Hold rating to the company’s stock. According to data from MarketBeat, NVIDIA has a consensus rating of “Moderate Buy” and an average target price of $277.89.

NVIDIA Price Performance

NVDA traded down $3.34 on Thursday, reaching $162.85. The company had a trading volume of 363,372,273 shares, compared to its average volume of 196,617,360. The company has a fifty day moving average of $214.64 and a 200-day moving average of $204.12. The company has a market capitalization of $3.92 trillion, a P/E ratio of 20.59, a PEG ratio of 1.28 and a beta of 2.21. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA has a one year low of $148.80 and a one year high of $243.37.

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. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter last year, the company earned $1.05 EPS. NVIDIA’s quarterly revenue was up 105.9% on a year-over-year basis. As a group, equities research analysts anticipate that NVIDIA will post 9.29 earnings per share for the current year.

NVIDIA declared that its board has approved a stock repurchase plan on Monday, September 28th that authorizes the company to buy back $150 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

NVIDIA Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio is 12.64%.

Insider Activity at NVIDIA

In other news, EVP Timothy 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 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction dated 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 transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Several large investors have recently added to or reduced their stakes in NVDA. Jupiter Topco LLC acquired a new position in shares of NVIDIA in the 2nd quarter valued at $16,156,076,000. Van ECK Associates Corp boosted its holdings in shares of 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 worth $15,176,771,000 after acquiring an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of NVIDIA during the third quarter worth $3,921,459,000. State Street Corp grew its holdings in NVIDIA by 1.6% during 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 during the last quarter. Finally, Amundi grew its stake in shares of NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

Key Stories Impacting NVIDIA

These are some of the NVDA stories that stood out recently:

• 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

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.