Barclays Issues Pessimistic Forecast for NVIDIA (NASDAQ:NVDA) Stock Price

NVIDIA (NASDAQ:NVDA) had its price objective dropped by Barclays from $275.00 to $210.00 in a report released on Friday, Benzinga reports. The brokerage currently has an “overweight” rating on the computer hardware maker’s stock. Barclays‘s target price points to a potential upside of 31.25% from the stock’s previous close.

Other research analysts have also issued research reports about the stock. Melius Research lowered shares of NVIDIA from a “buy” rating to a “hold” rating and lowered their target price for the stock from $315.00 to $185.00 in a research note on Thursday. Robert W. Baird downgraded shares of NVIDIA from an “outperform” rating to a “neutral” rating and reduced their price target for the company from $500.00 to $200.00 in a research note on Wednesday. Piper Sandler assumed coverage on shares of NVIDIA in a report on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 price objective on the stock. Raymond James Financial raised shares of NVIDIA from an “outperform” rating to a “strong-buy” rating in a research report on Wednesday. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $300.00 target price on shares of NVIDIA in a report on Monday. Five analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $282.36.

NVIDIA Trading Down 3.7%

NASDAQ:NVDA traded down $6.19 on Friday, reaching $160.00. The company’s stock had a trading volume of 150,271,484 shares, compared to its average volume of 155,427,766. NVIDIA has a 12-month low of $148.80 and a 12-month high of $243.37. The stock has a 50 day moving average price of $215.96 and a 200 day moving average price of $204.25. The firm has a market cap of $3.86 trillion, a price-to-earnings ratio of 20.24, a price-to-earnings-growth ratio of 1.34 and a beta of 2.21. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during 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 quarterly revenue was up 105.9% on a year-over-year basis. During the same period last year, the company earned $1.05 EPS. On average, equities analysts anticipate that NVIDIA will post 9.29 EPS for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a stock repurchase program on Monday, September 28th that allows the company to buy back $150 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Colette Kress sold 34,918 shares of the stock in a transaction 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 sale, the chief financial officer directly 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. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% 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. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last ninety days. 3.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NVIDIA

Several hedge funds and other institutional investors have recently made changes to their positions in NVDA. State Street Corp lifted its position in shares of NVIDIA by 1.5% during the 3rd quarter. State Street Corp now owns 1,025,075,347 shares of the computer hardware maker’s stock worth $234,355,574,000 after purchasing an additional 15,291,910 shares during the last quarter. Bank of America Corp DE increased its position in NVIDIA by 2.2% during the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock worth $39,090,956,000 after buying an additional 4,165,875 shares during the period. Amundi boosted its holdings in shares of NVIDIA by 10.4% in the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after acquiring an additional 12,575,177 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of NVIDIA by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock valued at $16,479,126,000 after acquiring an additional 555,221 shares during the period. Finally, Deutsche Bank AG boosted its holdings in shares of NVIDIA by 2.3% in the second quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock valued at $18,399,108,000 after acquiring an additional 2,045,101 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Key Headlines Impacting NVIDIA

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

• 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: Huang’s immediate resignation removes the leader closely associated with NVIDIA’s rise and leaves the company without a permanent CEO. Reports questioning the succession plan—including claims Huang privately criticized Kress—add uncertainty about leadership continuity. Nvidia Faces a Difficult Founder Transition
• Negative Sentiment: Analyst downgrades and price-target cuts reflect concerns about succession, governance and competition. Rivals such as AMD and Broadcom may benefit if customers use the turmoil to diversify suppliers, while export restrictions could weigh on the wider chip industry. Analyst Warns Nvidia Turmoil Could Prompt Industry Earnings Reset

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.