NVIDIA (NASDAQ:NVDA) Shares Down 4.3% After Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA) fell 4.3% during mid-day trading on Monday after Evercore downgraded the stock from an outperform rating to a positive rating. The stock traded as low as $170.24 and last traded at $178.67. Approximately 455,532,983 shares traded hands during trading, an increase of 202% from the average session volume of 150,715,156 shares. The stock had previously closed at $186.64.

Several other research firms also recently weighed in on NVDA. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of NVIDIA in a research note on Monday. DA Davidson reissued a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a research report on Thursday, August 27th. Piper Sandler began coverage on NVIDIA in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 target price for the company. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $330.00 target price on shares of NVIDIA in a research report on Monday. Finally, Stifel Nicolaus set a $315.00 target price on NVIDIA in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $314.24.

Insiders Place Their Bets

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction on 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 directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction dated 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 of the company’s stock, valued at $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company’s stock.

Key NVIDIA News

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

• Positive Sentiment: Morgan Stanley kept its Overweight rating and $300 target, despite removing NVIDIA from its top-pick list, signaling that some analysts still see substantial upside. Analyst ratings and price targets
• Negative Sentiment: China-related risks remain in focus: Reuters says the controversy has revived debate over chip export restrictions, while a separate report says a U.S.-blacklisted Chinese university obtained H200 chips. These claims and potential policy changes raise regulatory and sales risks; details remain under scrutiny. Nvidia drama revives chip export ban debate
• Negative Sentiment: Baird downgraded NVIDIA to Neutral and cut its price target to $200 from $500, citing CEO uncertainty and a possible AI-spending slowdown in 2027. That caution contrasts with Morgan Stanley’s continued bullish rating. Baird downgrade and board investigation

Institutional Trading of NVIDIA

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. White Lighthouse Investment Management Inc. lifted its position in shares of NVIDIA by 0.9% during the third quarter. White Lighthouse Investment Management Inc. now owns 5,304 shares of the computer hardware maker’s stock valued at $1,211,000 after purchasing an additional 46 shares in the last quarter. Retirement Wealth Solutions LLC grew its position in NVIDIA by 1.2% in the 2nd quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock worth $825,000 after purchasing an additional 47 shares in the last quarter. LightSquare Wealth Management LLC grew its position in NVIDIA by 0.3% in the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock worth $3,741,000 after purchasing an additional 49 shares in the last quarter. CWS Financial Advisors LLC grew its position in NVIDIA by 3.1% in the 3rd quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker’s stock worth $377,000 after purchasing an additional 49 shares in the last quarter. Finally, Defender Capital LLC. increased its stake in NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after buying an additional 50 shares during the last quarter. 65.27% of the stock is owned by institutional investors.

NVIDIA Stock Performance

The company’s 50 day simple moving average is $217.99 and its 200 day simple moving average is $204.42. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The stock has a market cap of $4.19 trillion, a PE ratio of 21.96, a price-to-earnings-growth ratio of 1.37 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company’s revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.05 EPS. Analysts expect that NVIDIA Corporation will post 9.30 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 paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio is 12.64%.

NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Monday, September 28th that allows the company to repurchase $150 billion in shares. This buyback authorization allows the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Share buyback plans are usually an indication that the company’s board believes its shares are undervalued.

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.