Nvidia Corp. (NVDA) Downgraded by Zacks Investment Research to “Hold”
Nvidia Corp. (NASDAQ:NVDA) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “NVIDIA offers digital media processors and related software for a wide range of visual computing platforms. Estimates have been stable lately ahead of the company’s 3Q17 earnings release. The company has positive record of earnings surprises in recent quarters. NVIDIA’s sustained efforts toward attaining robust position in several emerging industries such as Artificial Intelligence (AI), deep learning and driverless cars industry, makes us optimistic about its growth prospect. Furthermore, by expanding its business avenues, the company will be able to reduce its dependency on the PC industry, which is currently declining. NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs remain the positives. Nonetheless, competition from the likes of Intel and QUALCOMM Inc. remains a near-term headwind. Additionally, continuous decline in PC sales is a cause of concern for NVIDIA’s GPU segment.”
A number of other research firms have also recently commented on NVDA. Wells Fargo & Co. reissued an “underperform” rating on shares of Nvidia Corp. in a research note on Friday, September 30th. Bank of America Corp. reaffirmed a “buy” rating and issued a $80.00 price objective on shares of Nvidia Corp. in a research note on Monday, October 3rd. Vetr cut shares of Nvidia Corp. from a “buy” rating to a “hold” rating and set a $69.67 price objective for the company. in a research note on Thursday, September 29th. SunTrust Banks Inc. assumed coverage on shares of Nvidia Corp. in a research note on Monday, September 19th. They issued a “neutral” rating and a $59.00 price objective for the company. Finally, Susquehanna assumed coverage on shares of Nvidia Corp. in a research note on Tuesday, September 20th. They issued a “neutral” rating and a $66.00 price objective for the company. Two research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and eighteen have given a buy rating to the company. Nvidia Corp. has an average rating of “Hold” and an average price target of $58.45.
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Shares of Nvidia Corp. (NASDAQ:NVDA) opened at 66.10 on Wednesday. The firm has a 50-day moving average of $64.58 and a 200 day moving average of $51.70. The company has a market capitalization of $35.36 billion, a P/E ratio of 43.43 and a beta of 1.25. Nvidia Corp. has a 1-year low of $24.75 and a 1-year high of $69.70.
Nvidia Corp. (NASDAQ:NVDA) last released its quarterly earnings results on Thursday, August 11th. The computer hardware maker reported $0.53 EPS for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.16. Nvidia Corp. had a net margin of 16.58% and a return on equity of 20.86%. The business earned $1.43 billion during the quarter, compared to analysts’ expectations of $1.35 billion. During the same quarter in the previous year, the company earned $0.34 EPS. The business’s quarterly revenue was up 23.9% compared to the same quarter last year. On average, equities research analysts expect that Nvidia Corp. will post $1.85 earnings per share for the current year.
In other news, insider Jen Hsun Huang sold 41,666 shares of Nvidia Corp. stock in a transaction that occurred on Wednesday, October 12th. The shares were sold at an average price of $66.42, for a total transaction of $2,767,455.72. Following the sale, the insider now owns 1,751,872 shares in the company, valued at $116,359,338.24. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Tench Coxe sold 85,551 shares of Nvidia Corp. stock in a transaction that occurred on Friday, September 30th. The shares were sold at an average price of $68.75, for a total transaction of $5,881,631.25. The disclosure for this sale can be found here. Company insiders own 5.82% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in Nvidia Corp. by 1.3% in the second quarter. Vanguard Group Inc. now owns 47,688,150 shares of the computer hardware maker’s stock valued at $2,241,821,000 after buying an additional 601,606 shares during the last quarter. Primecap Management Co. CA boosted its stake in Nvidia Corp. by 0.5% in the first quarter. Primecap Management Co. CA now owns 29,210,850 shares of the computer hardware maker’s stock valued at $1,040,783,000 after buying an additional 143,175 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its stake in Nvidia Corp. by 0.9% in the second quarter. Massachusetts Financial Services Co. MA now owns 16,986,585 shares of the computer hardware maker’s stock valued at $798,539,000 after buying an additional 152,220 shares during the last quarter. Jennison Associates LLC boosted its stake in Nvidia Corp. by 568.9% in the second quarter. Jennison Associates LLC now owns 9,402,566 shares of the computer hardware maker’s stock valued at $442,015,000 after buying an additional 7,996,913 shares during the last quarter. Finally, Baillie Gifford & Co. boosted its stake in Nvidia Corp. by 3.1% in the second quarter. Baillie Gifford & Co. now owns 5,301,449 shares of the computer hardware maker’s stock valued at $249,221,000 after buying an additional 160,043 shares during the last quarter. Hedge funds and other institutional investors own 86.29% of the company’s stock.
Nvidia Corp. Company Profile
NVIDIA Corporation (NVIDIA) is engaged in visual computing. The Company operates through segments, including GPU and Tegra Processor. Its GPU businesses include GeForce for personal computer (PC) gaming; Quadro for design professionals working in computer-aided design, video editing, special effects and other creative applications; Tesla for deep learning and accelerated computing, leveraging the parallel computing capabilities of graphics processing units (GPUs) for general purpose computing, and GRID to provide the power of NVIDIA graphics through the cloud and datacenters.
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