NVIDIA (NASDAQ:NVDA) Shares Gap Down on Analyst Downgrade

NVIDIA Co. (NASDAQ:NVDA) shares gapped down prior to trading on Wednesday after Rosenblatt Securities lowered their price target on the stock from $220.00 to $200.00. The stock had previously closed at $112.20, but opened at $104.55. Rosenblatt Securities currently has a buy rating on the stock. NVIDIA shares last traded at $105.49, with a volume of 83,601,576 shares trading hands.

NVDA has been the topic of a number of other reports. DZ Bank raised shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 28th. Raymond James decreased their target price on shares of NVIDIA from $170.00 to $150.00 and set a “strong-buy” rating on the stock in a research note on Wednesday. HSBC downgraded NVIDIA from a “buy” rating to a “hold” rating and set a $120.00 price objective for the company. in a research note on Thursday, April 3rd. KeyCorp set a $190.00 target price on NVIDIA in a report on Wednesday, March 19th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $200.00 price target on shares of NVIDIA in a research report on Wednesday. Six investment analysts have rated the stock with a hold rating, thirty-six have assigned a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $165.64.

Insider Activity

In other NVIDIA news, insider Donald F. Robertson, Jr. sold 4,500 shares of the firm’s stock in a transaction on Friday, March 21st. The shares were sold at an average price of $116.80, for a total transaction of $525,600.00. Following the transaction, the insider now directly owns 479,428 shares of the company’s stock, valued at approximately $55,997,190.40. This trade represents a 0.93 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Colette Kress sold 66,660 shares of the stock in a transaction that occurred on Friday, March 21st. The stock was sold at an average price of $116.83, for a total value of $7,787,887.80. Following the sale, the chief financial officer now directly owns 3,085,765 shares of the company’s stock, valued at $360,509,924.95. The trade was a 2.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 147,147 shares of company stock worth $17,133,207. 4.23% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Tacita Capital Inc acquired a new position in shares of NVIDIA in the 4th quarter valued at $28,000. Legend Financial Advisors Inc. purchased a new stake in shares of NVIDIA during the fourth quarter valued at approximately $34,000. Vision Financial Markets LLC acquired a new stake in NVIDIA during the 4th quarter valued at $38,000. Luken Investment Analytics LLC acquired a new stake in NVIDIA during the 4th quarter valued at approximately $40,000. Finally, Lowe Wealth Advisors LLC bought a new stake in shares of NVIDIA in the fourth quarter worth $46,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Price Performance

The company has a current ratio of 4.10, a quick ratio of 3.64 and a debt-to-equity ratio of 0.13. The company has a market cap of $2.55 trillion, a P/E ratio of 41.12, a P/E/G ratio of 1.76 and a beta of 1.96. The company’s 50-day moving average price is $117.83 and its two-hundred day moving average price is $130.03.

NVIDIA (NASDAQ:NVDA) last issued its quarterly earnings results on Wednesday, February 26th. The computer hardware maker reported $0.89 EPS for the quarter, beating analysts’ consensus estimates of $0.84 by $0.05. NVIDIA had a return on equity of 114.83% and a net margin of 55.69%. The company had revenue of $39.33 billion for the quarter, compared to analyst estimates of $38.16 billion. As a group, sell-side analysts expect that NVIDIA Co. will post 2.77 earnings per share for the current year.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 2nd. Investors of record on Wednesday, March 12th were paid a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.04%. The ex-dividend date was Wednesday, March 12th. NVIDIA’s payout ratio is 1.36%.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.