NVIDIA (NASDAQ:NVDA) Stock Rating Lowered by Zacks Research

NVIDIA (NASDAQ:NVDA) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Thursday,Zacks.com reports.

A number of other brokerages also recently commented on NVDA. BNP Paribas Exane increased their price target on NVIDIA from $270.00 to $285.00 and gave the company an “outperform” rating in a research report on Thursday. New Street Research decreased their price target on NVIDIA from $343.00 to $340.00 in a research report on Thursday. Wells Fargo & Company reaffirmed an “overweight” rating and set a $315.00 price target (up from $265.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Mizuho set a $300.00 price target on NVIDIA in a research report on Thursday. Finally, Piper Sandler reaffirmed an “overweight” rating on shares of NVIDIA in a research report on Thursday, February 26th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $303.27.

NVIDIA Stock Performance

Shares of NVDA opened at $215.33 on Thursday. 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 company has a market capitalization of $5.21 trillion, a price-to-earnings ratio of 32.98, a PEG ratio of 0.68 and a beta of 2.25. The stock has a 50 day moving average of $196.10 and a 200 day moving average of $189.06. NVIDIA has a 12 month low of $129.16 and a 12 month high of $236.54.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts’ consensus estimates 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 return on equity of 96.94% and a net margin of 62.97%.NVIDIA’s revenue was up 85.2% on a year-over-year basis. During the same period last year, the business posted $0.81 earnings per share. As a group, sell-side analysts forecast that NVIDIA will post 7.88 earnings per share for the current year.

NVIDIA declared that its Board of Directors has initiated a stock buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its stock is undervalued.

Insider Activity at NVIDIA

In other NVIDIA news, EVP Ajay K. Puri sold 300,000 shares of the firm’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the transaction, the executive vice president directly owned 3,018,547 shares of the company’s stock, valued at approximately $550,130,190.75. This trade represents a 9.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Aarti S. Shah sold 19,000 shares of the firm’s stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the transaction, the director directly owned 36,007 shares in the company, valued at $6,362,796.97. The trade was a 34.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 906,336 shares of company stock worth $162,802,518 in the last three months. Company insiders own 4.17% of the company’s stock.

Institutional Trading of NVIDIA

Several hedge funds and other institutional investors have recently made changes to their positions in NVDA. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA in the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC boosted its holdings in shares of 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. purchased a new stake in shares of NVIDIA in the first quarter valued at about $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in shares of NVIDIA in the second quarter valued at about $40,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Key Headlines Impacting NVIDIA

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

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.