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 analysts have also weighed in on NVDA. B. Riley reissued a “buy” rating and set a $58.00 price objective on shares of Nvidia Corp. in a research note on Wednesday, June 22nd. Vetr raised Nvidia Corp. from a “hold” rating to a “buy” rating and set a $47.09 price objective for the company in a research note on Monday, June 27th. KeyCorp reissued a “hold” rating on shares of Nvidia Corp. in a research note on Wednesday, July 6th. BMO Capital Markets reissued a “hold” rating on shares of Nvidia Corp. in a research note on Sunday, July 10th. Finally, Mizuho initiated coverage on Nvidia Corp. in a research note on Thursday, July 14th. They set a “buy” rating and a $60.00 price objective for the company. Two analysts have rated the stock with a sell rating, fifteen have given a hold rating and eighteen have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $58.45.
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Shares of Nvidia Corp. (NASDAQ:NVDA) opened at 66.61 on Wednesday. The company’s 50-day moving average is $64.58 and its 200 day moving average is $51.70. Nvidia Corp. has a 52-week low of $24.75 and a 52-week high of $69.70. The firm has a market capitalization of $35.64 billion, a P/E ratio of 43.76 and a beta of 1.25.
Nvidia Corp. (NASDAQ:NVDA) last issued its earnings results on Thursday, August 11th. The computer hardware maker reported $0.53 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.16. The business earned $1.43 billion during the quarter, compared to analyst estimates of $1.35 billion. Nvidia Corp. had a return on equity of 20.86% and a net margin of 16.58%. Nvidia Corp.’s revenue for the quarter was up 23.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.34 earnings per share. Analysts expect that Nvidia Corp. will post $1.85 EPS for the current fiscal year.
In related news, Director Tench Coxe sold 85,551 shares of Nvidia Corp. stock in a transaction that occurred on Friday, September 30th. The stock was sold at an average price of $68.75, for a total transaction of $5,881,631.25. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Jen Hsun Huang sold 40,000 shares of Nvidia Corp. stock in a transaction that occurred on Wednesday, August 10th. The shares were sold at an average price of $58.66, for a total value of $2,346,400.00. Following the sale, the insider now directly owns 1,817,279 shares in the company, valued at approximately $106,601,586.14. The disclosure for this sale can be found here. Insiders own 5.82% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. Washington Trust Bank increased its stake in shares of Nvidia Corp. by 0.8% in the third quarter. Washington Trust Bank now owns 6,753 shares of the computer hardware maker’s stock valued at $463,000 after buying an additional 54 shares during the period. Atlantic Trust Group LLC increased its stake in shares of Nvidia Corp. by 0.3% in the second quarter. Atlantic Trust Group LLC now owns 27,441 shares of the computer hardware maker’s stock valued at $1,289,000 after buying an additional 81 shares during the period. IFC Holdings Incorporated FL increased its stake in shares of Nvidia Corp. by 1.2% in the second quarter. IFC Holdings Incorporated FL now owns 8,639 shares of the computer hardware maker’s stock valued at $403,000 after buying an additional 100 shares during the period. Koshinski Asset Management Inc. increased its stake in shares of Nvidia Corp. by 2.4% in the third quarter. Koshinski Asset Management Inc. now owns 5,234 shares of the computer hardware maker’s stock valued at $359,000 after buying an additional 122 shares during the period. Finally, Advantus Capital Management Inc increased its stake in shares of Nvidia Corp. by 0.3% in the second quarter. Advantus Capital Management Inc now owns 50,125 shares of the computer hardware maker’s stock valued at $2,356,000 after buying an additional 131 shares during the period. 86.29% of the stock is currently owned by institutional investors.
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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