NVIDIA (NASDAQ:NVDA) Stock Price Up 2.6% - Still a Buy?

NVIDIA Corporation (NASDAQ:NVDA) saw its stock price increase by 2.6% on Tuesday, with shares trading as high as $121.20 before closing at $119.72. During the trading session, approximately 95,065,843 shares changed hands, which is a 67% decrease from its average daily volume of 290,855,094 shares. The previous closing price was $116.66.

Analyst Recommendations

Recent reports from various brokerages emphasize a positive outlook for NVIDIA. Phillip Securities upgraded their rating to "accumulate," increasing the price target from $155.00 to $160.00 on November 22. Benchmark reiterated a "buy" rating with a price target of $190.00, while Deutsche Bank raised their target from $115.00 to $140.00, maintaining a "hold" rating. Other firms, like Loop Capital, also restated a "buy" rating, giving a target of $175.00, and Redburn Atlantic initiated coverage with a "buy" rating and a target of $178.00. Overall, 38 analysts have rated the stock as a buy, while four suggest holding it, resulting in a consensus rating of "Moderate Buy" and a target price of $166.23 according to MarketBeat data.

NVIDIA’s Stock Performance

The 50-day moving average for NVIDIA stands at $136.19, and its 200-day moving average is $129.38. The company has shown robust financial fundamentals, with a debt-to-equity ratio of 0.13, along with a current ratio of 4.10 and a quick ratio of 3.64. Its market capitalization is approximately $2.93 trillion, and it has a price-to-earnings (P/E) ratio of 47.02, a PEG ratio of 2.16, and a beta of 1.62.

NVIDIA recently reported impressive earnings results on November 20, with earnings per share (EPS) of $0.81, surpassing analysts' expectations of $0.69. The company generated revenue of $35.08 billion, exceeding the anticipated $33.15 billion. The net margin was an impressive 55.69%, and they achieved a return on equity of 114.83%. Comparatively, this quarterly revenue marks a 93.6% increase from the same period last year. Analysts project NVIDIA’s EPS to reach 2.77 for the current fiscal year.

Dividend Declaration

The firm recently announced a quarterly dividend of $0.01, which was paid out on December 27. This equates to an annual dividend of $0.04, yielding a modest 0.03%. The ex-dividend date was December 5, and NVIDIA's current dividend payout ratio is 1.57%.

Insider Transactions

In recent insider activity, Director Tench Coxe sold 1,000,000 shares of NVIDIA on December 16, receiving about $131.26 per share, totaling $131,260,000. After this transaction, he retains 28,671,360 shares valued at roughly $3.76 billion. Additionally, Executive Vice President Ajay K. Puri sold 36,462 shares at an average price of $151.10 on January 6, realizing $5,509,408.20. Insiders have sold a combined total of 1,108,348 shares worth $146,506,958 in the last quarter. Corporate insiders hold 4.23% of NVIDIA’s stock.

Institutional Investors Actions

Institutional interest in NVIDIA remains strong, with several hedge funds and institutional investors adjusting their positions. Hoertkorn Richard Charles increased its stake by 2.0% during the third quarter, now owning 3,490 shares valued at $424,000 after acquiring an additional 70 shares. DiNuzzo Private Wealth raised its share count by 0.8% in the fourth quarter, now possessing 8,612 shares worth $1,157,000. Smart Portfolios also grew its stake by 2.7%, owning 2,805 shares valued at $341,000. Notably, institutional investors collectively own 65.27% of NVIDIA’s shares.

About NVIDIA

NVIDIA Corporation specializes in creating graphics, computing, and networking solutions. The company is well-known for its GeForce GPUs used in gaming and desktop computers, as well as for its enterprise graphics solutions. NVIDIA’s products also cater to automotive platforms and software for metaverse and 3D applications.

NVIDIA, Stocks, Investing