NVIDIA (NASDAQ:NVDA) Stock Gets Downgrade from HSBC

NVIDIA (NASDAQ:NVDA) was downgraded by HSBC from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday, Briefing.com reports. They currently have a $170.00 target price on the computer hardware maker’s stock. HSBC‘s price target indicates a potential upside of 7.05% from the stock’s previous close.

A number of other research firms have also recently issued reports on NVDA. Sanford C. Bernstein set a $200.00 price objective on shares of NVIDIA and gave the stock a “market perform” rating in a research report on Thursday. Needham & Company LLC reduced 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. TD Cowen restated a “buy” rating on shares of NVIDIA in a report on Tuesday, August 18th. Craig Hallum cut NVIDIA from a “buy” rating to a “hold” rating and set a $180.00 target price on the stock. in a report on Thursday. Finally, Jefferies Financial Group initiated coverage on shares of NVIDIA in a report on Wednesday. They issued a “hold” rating on the stock. Five investment analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, NVIDIA currently has an average rating of “Moderate Buy” and a consensus price target of $278.54.

NVIDIA Trading Down 4.4%

Shares of NVIDIA stock traded down $7.39 on Friday, hitting $158.80. 157,685,175 shares of the company’s stock traded hands, compared to its average volume of 155,427,766. The company has a fifty day moving average of $215.96 and a two-hundred day moving average of $204.25. NVIDIA has a one year low of $148.80 and a one year high of $243.37. The company has a market capitalization of $3.83 trillion, a price-to-earnings ratio of 20.18, a price-to-earnings-growth ratio of 1.34 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA) last issued 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. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the company posted $1.05 earnings per share. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, sell-side analysts expect that NVIDIA will post 9.29 earnings per share for the current year.

NVIDIA declared that its board has authorized a share buyback plan on Monday, September 28th that authorizes the company to repurchase $150 billion in shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Share buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Insider Transactions at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The stock was 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 represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last quarter. Insiders own 3.94% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. White Lighthouse Investment Management Inc. boosted its position in 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 worth $1,211,000 after purchasing an additional 46 shares during the period. Retirement Wealth Solutions LLC raised its position in shares of NVIDIA by 1.2% in the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker’s stock valued at $825,000 after purchasing an additional 47 shares during the period. LightSquare Wealth Management LLC raised its position in shares of NVIDIA by 0.3% in the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after purchasing an additional 49 shares during the period. CWS Financial Advisors LLC lifted its stake in shares of NVIDIA by 3.1% during the 3rd quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker’s stock valued at $377,000 after buying an additional 49 shares in the last quarter. Finally, Defender Capital LLC. lifted its stake in shares of NVIDIA by 0.7% during 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 in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Trending Headlines about NVIDIA

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

• Positive Sentiment: NVIDIA says longtime CFO Colette Kress will serve as interim CEO, backed by an experienced leadership team, and that customer commitments and its product roadmap are expected to continue without interruption. The board has begun searching for a permanent successor. NVIDIA Announces CEO Transition
• Neutral Sentiment: Some investors see the selloff as a buying opportunity, while others are waiting for earnings and management’s outlook. The next report may be an important near-term test of confidence. Experts Weigh In on NVDA’s Future
• Negative Sentiment: Congress wants Huang to testify about the company’s export controls and whether restricted chips were diverted to China through a customer. The investigation and possible tighter rules could create legal, regulatory and sales risks; the allegations have not been established as fact. Congressional Scrutiny of Nvidia Chip Sales

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.