NVIDIA (NASDAQ:NVDA) Stock Bumped Down to Hold by HSBC

NVIDIA (NASDAQ:NVDA) was downgraded by analysts at HSBC from a “buy” rating to a “hold” rating in a research note issued on Friday, Briefing.com reports. They presently have a $170.00 price target on the computer hardware maker’s stock. HSBC‘s price target points to a potential upside of 7.05% from the company’s current price.

NVDA has been the topic of several other reports. Citigroup decreased their price target on shares of NVIDIA from $315.00 to $285.00 and set a “buy” rating on the stock in a research note on Tuesday. Yorkville Ives started coverage on shares of NVIDIA in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $300.00 price objective for the company. China Renaissance boosted their price objective on shares of NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a report on Monday, August 31st. Deutsche Bank restated a “buy” rating on shares of NVIDIA in a research report on Monday, August 31st. Finally, Wall Street Zen cut NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 24th. Five investment analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $278.54.

NVIDIA Stock Performance

NVIDIA stock traded down $7.39 during trading hours on Friday, hitting $158.80. The company had a trading volume of 157,685,175 shares, compared to its average volume of 155,427,766. The firm has a 50-day moving average of $215.96 and a 200 day moving average of $204.25. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm has a market cap of $3.83 trillion, a PE ratio of 20.18, a PEG ratio of 1.34 and a beta of 2.21. NVIDIA has a one year low of $148.80 and a one year high of $243.37.

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. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the company posted $1.05 earnings per share. The business’s revenue was up 105.9% on a year-over-year basis. On average, sell-side analysts expect that NVIDIA will post 9.29 earnings per share for the current year.

NVIDIA announced that its board has approved 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 buy up to 2.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other NVIDIA news, EVP Timothy Teter sold 30,460 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. The trade was a 4.36% decrease in their position. 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 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. 3.94% of the stock is currently owned by insiders.

Institutional Trading of NVIDIA

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Intelligent Financial Strategies bought a new position in NVIDIA during the 3rd quarter worth approximately $26,000. Montgomery Financial Services LLC bought a new stake in shares of NVIDIA in the 2nd quarter valued at $28,000. Newton One Investments LLC acquired a new stake in shares of NVIDIA during the third quarter worth $34,000. Phillip James Consulting Co. acquired a new stake in shares of NVIDIA during the first quarter worth $40,000. Finally, Bard Associates Inc. increased its position in shares of NVIDIA by 8,866.7% during the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after buying an additional 266 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA News Summary

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

• 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: 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
• 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

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.