NVIDIA (NASDAQ:NVDA) Shares Down 1.9% After Analyst Downgrade
by Jessica Moore · The Cerbat GemNVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s stock price fell 1.9% on Friday after New Street Research lowered their price target on the stock from $343.00 to $340.00. The stock traded as low as $214.80 and last traded at $215.33. 166,290,478 shares were traded during mid-day trading, a decline of 3% from the average session volume of 170,684,719 shares. The stock had previously closed at $219.51.
Other analysts also recently issued reports about the stock. Evercore reiterated an “outperform” rating and issued a $413.00 price objective (up from $352.00) on shares of NVIDIA in a research report on Thursday. Rosenblatt Securities reiterated a “buy” rating and issued a $325.00 price objective on shares of NVIDIA in a research report on Thursday. Needham & Company LLC reiterated a “buy” rating and issued a $270.00 price objective (up from $240.00) on shares of NVIDIA in a research report on Thursday. Benchmark reiterated a “buy” rating and issued a $335.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Thursday. Finally, Wall Street Zen downgraded shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a research report on Sunday, April 26th. Four analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, NVIDIA has an average rating of “Buy” and a consensus target price of $303.27.
Read Our Latest Research Report on NVDA
Insider Activity at NVIDIA
In other NVIDIA news, Director John Dabiri sold 3,004 shares of the business’s stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $184.90, for a total transaction of $555,439.60. Following the sale, the director directly owned 14,788 shares in the company, valued at approximately $2,734,301.20. The trade was a 16.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark A. Stevens sold 221,682 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the sale, the director owned 7,399,771 shares in the company, valued at $1,285,192,227.28. This trade represents a 2.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 906,336 shares of company stock worth $162,802,518 in the last three months. Insiders own 4.17% of the company’s stock.
More NVIDIA News
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: Record Q1 results showed NVIDIA’s AI demand remains exceptional, with data center revenue hitting $75.2 billion and margins staying around 75%.
- Positive Sentiment: The board authorized an additional $80 billion share repurchase program, signaling confidence in future cash generation.
- Positive Sentiment: Analysts largely turned more bullish after earnings, with multiple firms raising price targets and maintaining buy or outperform ratings.
- Positive Sentiment: New product and ecosystem announcements, including the Vera Rubin platform and expanded AI partnerships, reinforce NVIDIA’s leadership beyond hyperscalers.
Hedge Funds Weigh In On NVIDIA
Hedge funds have recently made changes to their positions in the business. Lifetime Wealth Management P.C. acquired a new position in shares of NVIDIA in the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new position in shares of NVIDIA in the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC grew its stake in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. acquired a new position in shares of NVIDIA in the 1st quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC acquired a new position in shares of NVIDIA in the 2nd quarter worth approximately $40,000. Institutional investors and hedge funds own 65.27% of the company’s stock.
NVIDIA Price Performance
The company’s 50 day moving average price is $195.51 and its 200-day moving average price is $188.87. The company has a market cap of $5.22 trillion, a price-to-earnings ratio of 32.98, a PEG ratio of 0.69 and a beta of 2.25. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.24 and a current ratio of 3.91.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.62 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 110.48%. The business’s revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.81 EPS. On average, equities research analysts forecast that NVIDIA Corporation will post 7.89 earnings per share for the current fiscal year.
NVIDIA Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA’s payout ratio is 0.82%.
NVIDIA declared that its board has authorized a stock repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.
NVIDIA Company Profile
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.