NVIDIA (NASDAQ:NVDA) Shares Down 1.8% Following Analyst Downgrade

NVIDIA Corporation (NASDAQ:NVDA)’s share price fell 1.8% on Thursday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $217.93 and last traded at $219.51. 201,219,182 shares traded hands during mid-day trading, an increase of 18% from the average session volume of 170,715,375 shares. The stock had previously closed at $223.47.

Several other equities analysts also recently weighed in on NVDA. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Thursday. JPMorgan Chase & Co. upped their price objective on shares of NVIDIA from $265.00 to $280.00 and gave the company an “overweight” rating in a research note on Thursday. Fundamental Research set a $218.00 price objective on shares of NVIDIA in a report on Thursday, February 26th. Argus raised their target price on shares of NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Craig Hallum boosted their target price on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $303.27.

Insider Buying and Selling

In other news, Director Mark A. Stevens sold 221,682 shares of the business’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the transaction, the director directly owned 7,399,771 shares of the company’s stock, valued at approximately $1,285,192,227.28. The trade was a 2.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Colette Kress sold 20,000 shares of the company’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $174.89, for a total transaction of $3,497,800.00. Following the completion of the transaction, the chief financial officer owned 83,060 shares of the company’s stock, valued at $14,526,363.40. This trade represents a 19.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 906,336 shares of company stock valued at $162,802,518 over the last three months. Company insiders own 4.17% of the company’s stock.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered a record quarter with massive revenue growth, strong guidance, and record data center sales. The Tech Download: What you might have missed in Nvidia’s earnings — a $200 billion opportunity and edge computing
• Positive Sentiment: The company raised its dividend sharply and approved an $80 billion buyback, signaling confidence in future cash generation. Nvidia Just Raised Its Dividend By 2,400% — and That Wasn’t Even the Biggest News From Its Earnings Report
• Positive Sentiment: Wall Street remains broadly bullish, with multiple analysts raising price targets after earnings. Nvidia stock continues to struggle after earnings, but analysts remain firmly bullish
• Neutral Sentiment: Despite the strong report, the market seems to be digesting the results rather than rewarding them, suggesting investors may think the bar was already very high. Nvidia Stock Misses Out on Friday’s Rally. Here’s How Much Traders See It Moving Next Week
• Negative Sentiment: Some investors remain worried about valuation, competition, and the possibility that AI spending growth could slow from current extreme levels. Why Nvidia Stock Is Barely Moving After Earnings Crushed Expectations

Hedge Funds Weigh In On NVIDIA

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. purchased a new position in shares of NVIDIA during the 4th quarter valued at approximately $26,000. Longview Financial Advisors Inc. bought a new stake in shares of NVIDIA in the first quarter worth $27,000. Longfellow Investment Management Co. LLC raised its holdings in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after acquiring an additional 67 shares in the last quarter. Phillip James Consulting Co. acquired a new stake in NVIDIA in the first quarter valued at $40,000. Finally, Inspire Investing LLC bought a new position in NVIDIA during the 4th quarter valued at $44,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Stock Down 1.9%

The stock has a market capitalization of $5.21 trillion, a P/E ratio of 32.98, a P/E/G ratio of 0.68 and a beta of 2.25. The company has a current ratio of 3.44, a quick ratio of 3.24 and a debt-to-equity ratio of 0.04. The stock’s 50 day simple moving average is $196.10 and its 200 day simple moving average is $189.06.

NVIDIA (NASDAQ:NVDA) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.62 billion during the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue was up 85.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.81 EPS. As a group, research analysts predict that NVIDIA Corporation will post 7.88 EPS for the current fiscal year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be issued a $0.25 dividend. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA’s dividend payout ratio is presently 0.82%.

NVIDIA announced that its Board of Directors has authorized a stock buyback plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its shares are 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.