NVIDIA (NASDAQ:NVDA) Shares Gap Down Following Analyst Downgrade

NVIDIA Co. (NASDAQ:NVDA) shares gapped down before the market opened on Wednesday after Raymond James lowered their price target on the stock from $170.00 to $150.00. The stock had previously closed at $112.20, but opened at $104.55. Raymond James currently has a strong-buy rating on the stock. NVIDIA shares last traded at $105.49, with a volume of 83,601,576 shares.

A number of other analysts have also recently weighed in on NVDA. Summit Insights cut shares of NVIDIA from a “buy” rating to a “hold” rating in a research report on Thursday, February 27th. Barclays upped their target price on NVIDIA from $160.00 to $175.00 and gave the stock an “overweight” rating in a research report on Friday, January 17th. Bank of America dropped their target price on NVIDIA from $200.00 to $160.00 and set a “buy” rating on the stock in a report on Wednesday. Stifel Nicolaus set a $180.00 price target on NVIDIA in a report on Wednesday, March 19th. Finally, Wedbush reiterated an “outperform” rating and set a $175.00 price objective on shares of NVIDIA in a research note on Thursday, February 20th. Six investment analysts have rated the stock with a hold rating, thirty-six have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, NVIDIA currently has a consensus rating of “Moderate Buy” and a consensus target price of $166.76.

Insider Activity at NVIDIA

In related news, CFO Colette Kress sold 66,660 shares of the company’s stock in a transaction dated Friday, March 21st. The shares were sold at an average price of $116.83, for a total value of $7,787,887.80. Following the completion of the sale, the chief financial officer now owns 3,085,765 shares of the company’s stock, valued at $360,509,924.95. This represents a 2.11 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director John Dabiri sold 2,663 shares of the firm’s stock in a transaction dated Monday, March 10th. The shares were sold at an average price of $110.00, for a total transaction of $292,930.00. Following the transaction, the director now directly owns 17,279 shares in the company, valued at approximately $1,900,690. The trade was a 13.35 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 147,147 shares of company stock worth $17,133,207 in the last ninety days. 4.23% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in NVDA. Norges Bank bought a new stake in shares of NVIDIA in the 4th quarter worth $43,515,504,000. GAMMA Investing LLC raised its position in NVIDIA by 12,173.2% in the first quarter. GAMMA Investing LLC now owns 48,837,781 shares of the computer hardware maker’s stock worth $5,293,039,000 after acquiring an additional 48,439,859 shares in the last quarter. Clear Street Derivatives LLC acquired a new stake in NVIDIA in the 3rd quarter valued at about $4,589,905,000. Northern Trust Corp boosted its position in shares of NVIDIA by 15.8% during the 4th quarter. Northern Trust Corp now owns 266,454,194 shares of the computer hardware maker’s stock valued at $35,782,134,000 after purchasing an additional 36,266,817 shares in the last quarter. Finally, Proficio Capital Partners LLC grew its stake in shares of NVIDIA by 14,641.2% in the 4th quarter. Proficio Capital Partners LLC now owns 34,676,316 shares of the computer hardware maker’s stock worth $4,656,682,000 after purchasing an additional 34,441,082 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Price Performance

The firm has a market capitalization of $2.56 trillion, a P/E ratio of 41.36, a P/E/G ratio of 1.76 and a beta of 1.96. The company has a current ratio of 4.10, a quick ratio of 3.64 and a debt-to-equity ratio of 0.13. The business’s fifty day moving average is $118.34 and its 200 day moving average is $130.20.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, February 26th. The computer hardware maker reported $0.89 EPS for the quarter, beating analysts’ consensus estimates of $0.84 by $0.05. The company had revenue of $39.33 billion during the quarter, compared to the consensus estimate of $38.16 billion. NVIDIA had a return on equity of 114.83% and a net margin of 55.69%. As a group, analysts forecast that NVIDIA Co. will post 2.77 EPS for the current year.

NVIDIA Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th were issued a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 0.04%. The ex-dividend date was Wednesday, March 12th. NVIDIA’s payout ratio is 1.36%.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.