Traders Buy NVIDIA (NVDA) on Weakness on Analyst Downgrade

Investors purchased shares of NVIDIA Co. (NASDAQ:NVDA) on weakness during trading hours on Friday after Morgan Stanley lowered their price target on the stock from $273.00 to $260.00. $626.26 million flowed into the stock on the tick-up and $544.89 million flowed out of the stock on the tick-down, for a money net flow of $81.37 million into the stock. Of all companies tracked, NVIDIA had the 19th highest net in-flow for the day. NVIDIA traded down ($0.32) for the day and closed at $205.67

Other equities analysts also recently issued research reports about the stock. Benchmark restated a “buy” rating and set a $310.00 price objective (up previously from $280.00) on shares of NVIDIA in a research report on Thursday, September 20th. Needham & Company LLC upped their price objective on shares of NVIDIA from $325.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday, September 14th. BidaskClub downgraded shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 18th. Goldman Sachs Group upped their price objective on shares of NVIDIA from $310.00 to $324.00 and gave the stock a “buy” rating in a research report on Tuesday, August 7th. Finally, Bank of America upped their price objective on shares of NVIDIA from $340.00 to $360.00 and gave the stock a “buy” rating in a research report on Tuesday, September 25th. Eleven analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has given a strong buy rating to the stock. NVIDIA presently has a consensus rating of “Buy” and an average target price of $289.82.

In related news, CFO Colette Kress sold 11,576 shares of the stock in a transaction dated Thursday, September 20th. The shares were sold at an average price of $266.31, for a total value of $3,082,804.56. Following the sale, the chief financial officer now directly owns 297,482 shares of the company’s stock, valued at approximately $79,222,431.42. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Ajay K. Puri sold 90,831 shares of the stock in a transaction dated Tuesday, October 2nd. The shares were sold at an average price of $289.35, for a total transaction of $26,281,949.85. Following the completion of the sale, the executive vice president now directly owns 184,001 shares in the company, valued at $53,240,689.35. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 113,707 shares of company stock worth $32,347,973. Corporate insiders own 4.70% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of NVDA. Kwmg LLC acquired a new stake in NVIDIA in the 2nd quarter valued at about $105,000. Legacy Financial Advisors Inc. grew its stake in NVIDIA by 111.0% in the 2nd quarter. Legacy Financial Advisors Inc. now owns 443 shares of the computer hardware maker’s stock valued at $110,000 after acquiring an additional 233 shares during the last quarter. Signature Estate & Investment Advisors LLC acquired a new stake in NVIDIA in the 3rd quarter valued at about $124,000. Almanack Investment Partners LLC. acquired a new stake in NVIDIA in the 2nd quarter valued at about $127,000. Finally, Ropes Wealth Advisors LLC grew its stake in NVIDIA by 561.8% in the 2nd quarter. Ropes Wealth Advisors LLC now owns 589 shares of the computer hardware maker’s stock valued at $140,000 after acquiring an additional 500 shares during the last quarter. 65.71% of the stock is currently owned by hedge funds and other institutional investors.

The company has a market cap of $128.32 billion, a P/E ratio of 44.04, a PEG ratio of 2.77 and a beta of 2.01. The company has a current ratio of 7.41, a quick ratio of 6.66 and a debt-to-equity ratio of 0.23.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Thursday, August 16th. The computer hardware maker reported $1.94 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.66 by $0.28. NVIDIA had a net margin of 36.21% and a return on equity of 54.18%. The company had revenue of $3.12 billion for the quarter, compared to analysts’ expectations of $3.11 billion. During the same period last year, the company earned $1.01 EPS. The firm’s revenue for the quarter was up 40.0% compared to the same quarter last year. As a group, research analysts anticipate that NVIDIA Co. will post 7.15 EPS for the current year.

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NVIDIA Company Profile (NASDAQ:NVDA)

NVIDIA Corporation operates as a visual computing company worldwide. It operates through two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for AI utilizing deep learning, accelerated computing, and general purpose computing; GRID provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units.

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