NVIDIA (NVDA) Shares Gap Down on Analyst Downgrade

NVIDIA Co. (NASDAQ:NVDA) shares gapped down before the market opened on Monday after Summit Redstone downgraded the stock to a hold rating. The stock had previously closed at $160.51, but opened at $156.53. NVIDIA shares last traded at $151.75, with a volume of 13656977 shares traded.

Several other research analysts also recently weighed in on NVDA. Barclays restated a “buy” rating and set a $200.00 target price on shares of NVIDIA in a research note on Friday, January 18th. Benchmark restated a “buy” rating and set a $190.00 target price (down from $240.00) on shares of NVIDIA in a research note on Monday, January 28th. Cowen reiterated an “outperform” rating and set a $215.00 price target (down previously from $265.00) on shares of NVIDIA in a research note on Monday, January 28th. Morgan Stanley downgraded NVIDIA from an “overweight” rating to an “equal weight” rating and dropped their price target for the company from $220.00 to $148.00 in a research note on Tuesday, January 29th. Finally, UBS Group upgraded NVIDIA from a “neutral” rating to a “buy” rating and dropped their price target for the company from $190.00 to $180.00 in a research note on Tuesday, January 29th. Three equities research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and twenty-five have assigned a buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $198.93.

In other news, CFO Colette Kress sold 14,092 shares of the business’s stock in a transaction dated Thursday, March 21st. The stock was sold at an average price of $183.33, for a total value of $2,583,486.36. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Debora Shoquist sold 5,823 shares of the business’s stock in a transaction dated Wednesday, April 3rd. The shares were sold at an average price of $185.00, for a total value of $1,077,255.00. Following the completion of the transaction, the executive vice president now directly owns 171,783 shares of the company’s stock, valued at approximately $31,779,855. The disclosure for this sale can be found here. In the last three months, insiders sold 20,029 shares of company stock valued at $3,678,385. Insiders own 4.64% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. TD Capital Management LLC acquired a new position in NVIDIA in the 4th quarter worth about $27,000. Capital Financial Planning LLC purchased a new stake in NVIDIA during the 4th quarter worth approximately $28,000. Clarfeld Financial Advisors LLC purchased a new stake in NVIDIA during the 4th quarter worth approximately $29,000. Harvest Group Wealth Management LLC purchased a new stake in NVIDIA during the 1st quarter worth approximately $30,000. Finally, Truvestments Capital LLC purchased a new stake in NVIDIA during the 1st quarter worth approximately $33,000. 70.03% of the stock is owned by institutional investors and hedge funds.

The company has a quick ratio of 6.76, a current ratio of 7.94 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $95.25 billion, a P/E ratio of 25.00, a P/E/G ratio of 3.84 and a beta of 1.85.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings data on Thursday, May 16th. The computer hardware maker reported $0.88 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.81 by $0.07. NVIDIA had a return on equity of 31.69% and a net margin of 30.68%. The company had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.20 billion. During the same period in the previous year, the business earned $2.05 EPS. NVIDIA’s quarterly revenue was down 30.8% on a year-over-year basis. On average, analysts expect that NVIDIA Co. will post 4.44 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 21st. Shareholders of record on Friday, May 31st will be paid a dividend of $0.16 per share. The ex-dividend date is Thursday, May 30th. This represents a $0.64 annualized dividend and a yield of 0.42%. NVIDIA’s dividend payout ratio (DPR) is currently 10.54%.

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About NVIDIA (NASDAQ:NVDA)

NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the Graphics Processing Unit (GPU) and Tegra Processor segments. The GPU segment comprises of product brands which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users.

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