Nvidia Fell 1% Today, Analyst Downgraded the Stock

Nvidia (NASDAQ:NVDA) stock fell over 1% in today’s trading session at 9:50 AM ET. The Dow Jones Industrial Average fell by 346 points or 1.5%. Also, the S&P 500 and the Nasdaq Composite lost about 1.4% and 0.8%, respectively. The broader indexes fell due to uncertainty amid COVID-19.

On April 10, Nvidia stock fell 1.5% and closed at $262.95 with a market cap of $160.9 billion. The stock price has risen 2.9% in the trailing five-day period, while it has risen 38.9% in the trailing 12-month period. Nvidia stock is trading 16.9% below its 52-week high of $316.32 on February 20, 2020. The stock is also trading 98.3% above its 52-week low of $132.60 on June 3, 2019. On a YTD (year-to-date) basis, the stock has risen by 11.8% as of April 10.

Analysts’ recommendations for Nvidia stock

As of April 10, 41 analysts cover Nvidia stock. About 31 out of the 41 analysts recommend a “buy,” seven recommend a “hold,” and three recommend a “sell.” Analysts have an average target price of $294.92 on Nvidia. The target price implies a return of 12.2% based on the closing price of $262.95 on April 10. The consensus target price for the stock has fallen from $303.15 in March—a fall of 2.7%.

Today, Craig-Hallum analyst Richard Shannon downgraded Nvidia stock to “hold” from “buy.” The analyst decreased its target price on the stock from $325 to $300. According to a report from TheFly, “The analyst cited a more balanced risk/reward and lowered his Gaming estimates in 2021 to account for impacts from COVID-19 as well as a potential delay in next-generation GPU, somewhat offset by likely better Switch sales.” The report also said, “Shannon is not changing his Datacenter estimates, as he sees a balance of strong demand and uncertain supply chain dynamics.”

Intel (NASDAQ:INTC), Micron Technology (NASDAQ:MU), and Advanced Micro Devices (NYSE:AMD) have average broker target prices of $62.88, $61.72, and $50.71, respectively. These figures imply returns of 10.0%, 33.8%, and 4.8%, respectively, over the next 12 months.

Nvidia’s growth projection

Nvidia reported sales of $10.92 billion in fiscal 2020, which ended in January—a fall of 6.8% YoY (year-over-year) from sales of $11.7 billion in fiscal 2019. The semiconductor company reported an adjusted EPS of $5.79 in fiscal 2020 compared to $6.64 in fiscal 2019. Wall Street analysts expected the company to report sales of $10.78 billion and earnings of $5.58 in fiscal 2020.

Wall Street analysts expect Nvidia to report sales of $3.0 billion in the first quarter of fiscal 2021. The figure would mark an increase of 34.2% YoY compared to $2.2 billion in the first quarter of fiscal 2020. Also, analysts expect the company to report an adjusted EPS of $1.67 in the first quarter of fiscal 2021 compared to $0.88 in the first quarter of fiscal 2020. Currently, analysts expect an 18.8% and 16.1% rise in the company’s fiscal 2021 and 2022 revenues, respectively. Analysts also expect an adjusted EPS of $7.55 and $9.08 in fiscal 2021 and 2022, respectively.

Nvidia’s stock performance

Nvidia stock closed 8.6% above its 20-day moving average of $242.15 on April 10. However, the stock was 2.7% and 8.0% above its 50-day and 100-day moving averages of $256.07 and $243.51, respectively. The company’s 14-day MACD is 6.97, which indicates an upward trading pattern. With a 14-day relative strength index score of 54, the stock isn’t oversold or overbought.

Nvidia has an upper Bollinger Band level of $287.81. The company’s middle Bollinger Band level is $241.12, while its lower Bollinger Band level is $194.44. On April 10, Nvidia stock closed near its middle Bollinger Band level, which suggests that it isn’t overbought or oversold.

Currently, Nvidia stock is trading at 34.83x its fiscal 2021 estimated adjusted EPS of $7.55. The stock is trading at 28.97x its fiscal 2022 estimated adjusted EPS of $9.08. Analysts expect the company’s earnings to grow at a CAGR of 10.7% over the next five years.

Intel, Micron Technology, and Advanced Micro Devices stocks returned -3.1%, -4.5%, and -0.8% on April 10.

Read Is Nvidia Stock a ‘Buy’ amid the Stock Market Crash? and Nvidia Stock Rose 17.16% after Analyst Upgrade to learn more. You can also read Is There More Upside to Nvidia’s Stock Price? to learn more about the company.