NVIDIA (NASDAQ:NVDA) Shares Gain 1.8% - Future Outlook

NVIDIA Corp. (NASDAQ:NVDA) shares have gained 1.8% during trading on Thursday. The stock reached a high of $132.06 and was last recorded at $131.28. During mid-day trading, approximately 69,340,947 shares were exchanged, marking an 82% decline from the average daily volume of 382,614,281 shares. Previously, the stock had closed at $128.91.

Analyst Opinions

Recent insights from several analysts provide a positive outlook for NVIDIA. On November 12th, Redburn Atlantic began coverage on the stock, rating it as a "buy" with a price target of $178.00. Barclays raised their price target from $145.00 to $160.00 and categorized NVIDIA as "overweight" in a report dated November 21st. Mizuho also raised their price target on the shares from $165.00 to $175.00 with an "outperform" rating. Citigroup adjusted their price objective up from $170.00 to $175.00, reiterating a "buy" rating. Furthermore, Rosenblatt Securities reaffirmed a "buy" rating along with a target price of $200.00 as of November 18th. Overall, four equity research analysts have given a hold rating, thirty-nine have provided a buy rating, while one has assigned a strong buy designation. Current ratings indicate a "Moderate Buy" with a consensus target price of $164.15, according to MarketBeat.com.

Recent Performance

NVIDIA has shown solid financial health with a quick ratio of 3.64, a current ratio of 4.10, and a debt-to-equity ratio of 0.13. The company boasts a market capitalization of $3.23 trillion, a PE ratio of 51.88, a PEG ratio of 2.43, and a beta of 1.63. The 50-day moving average stands at $139.72, while the 200-day moving average is at $127.08.

On November 20th, NVIDIA announced its quarterly earnings, reporting earnings per share of $0.81 for the quarter, which surpassed analysts' expectations of $0.69 by $0.12. The company's return on equity was 114.83%, with a net margin of 55.69%. For the quarter, NVIDIA generated revenues of $35.08 billion, exceeding the consensus estimate of $33.15 billion. In the same quarter last year, NVIDIA reported earnings of $0.38 per share, showcasing a revenue increase of 93.6% year-over-year. Analysts project an average earnings per share of 2.78 for the current fiscal year.

Upcoming Dividend Announcement

NVIDIA also revealed details about its upcoming quarterly dividend, which is set to be paid on December 27th. Shareholders of record as of December 5th will receive a dividend of $0.01 per share. This translates to an annualized dividend of $0.04, equating to a yield of 0.03%. NVIDIA's dividend payout ratio is 1.57%.

Additionally, the company's board announced a share buyback plan on August 28th, authorizing up to $50 billion for repurchasing outstanding shares. This plan allows NVIDIA to acquire approximately 1.6% of its shares, indicating that the management believes the company's stock is undervalued.

Insider Transactions

In recent insider activity, Director Tench Coxe sold 1,000,000 shares on December 16th at an average price of $131.26, resulting in a total transaction value of $131,260,000. Following this sale, Coxe now holds 28,671,360 shares worth approximately $3.76 billion, marking a reduction of 3.37% in his position. Furthermore, insider Donald F. Robertson, Jr. sold 4,500 shares on December 13th at an average price of $135.28, totaling $608,760. This sale decreased his holdings by 0.93%. Over the past 90 days, insiders have sold 1,628,156 shares collectively valued at $209,985,077, with corporate insiders owning 4.23% of the total stock.

Institutional Investor Activity

Recent activity among institutional investors shows a trend of new positions and increased shares in NVIDIA. Christopher J. Hasenberg Inc. acquired a new investment in the third quarter valued at $27,000. CGC Financial Services LLC also entered a new position valued at $26,000 in the second quarter. Additionally, Quest Partners LLC and the University of Texas Texas A&M Investment Management Co. both made new investments during the second quarter worth approximately $27,000 and $31,000 respectively. Gleason Group Inc. significantly increased its holdings in NVIDIA by 900% in the second quarter, owning 280 shares valued at $35,000. Institutions now collectively own 65.27% of the company’s stock.

Company Overview

NVIDIA Corporation is a key provider of graphics and computing solutions not only in the United States but also in Taiwan, China, Hong Kong, and internationally. Its Graphics segment includes offerings like GeForce GPUs for gaming, the GeForce NOW game streaming service, and solutions for gaming platforms. It also features Quadro/NVIDIA RTX GPUs for enterprise graphics, vGPU software for cloud-based computing, automotive platforms, and software for scenarios like building applications within the metaverse.

Conclusion

The current uptick in NVIDIA’s stock prompts questions about future prospects. While analysts maintain a positive outlook with numerous buy ratings and favorable price targets, investors should assess their strategies carefully before committing to new investments.

NVIDIA, Stock, Market