NVIDIA (NASDAQ:NVDA) Trading 0.3% Higher - Here's Why

NVIDIA Corporation (NASDAQ:NVDA) experienced a slight increase of 0.3% during trading on Friday, with prices reaching as high as $113.48 before settling at $110.90. The trading volume was about 106,984,335 shares, which is significantly lower than the average daily volume of approximately 277,181,313 shares. Previously, the stock had closed at $110.57.

Wall Street Analysts Forecast Growth

Several financial analysts have shared their insights on NVIDIA. Citigroup recently raised its price target for NVIDIA shares from $170.00 to $175.00, maintaining a "buy" rating in a report published on November 21st. Loop Capital also confirmed a "buy" rating with a target price of $175.00 in a note on November 20th. Meanwhile, HSBC lowered its price target from $195.00 to $185.00 while still rating it as a "buy" on January 13th. Mizuho increased their price objective from $165.00 to $175.00, assigning an "outperform" rating on November 21st. DZ Bank upgraded NVIDIA from a "hold" to a "strong-buy" on February 28th. Currently, four analysts have given the stock a hold rating, thirty-seven have issued buy ratings, and two have rated it as a strong buy, bringing the consensus rating to "Moderate Buy" with an average price target of $171.69, according to MarketBeat.com.

NVIDIA Stock Performance

NVIDIA's market capitalization is about $2.72 trillion, with a price-to-earnings ratio of 43.74 and a PEG ratio of 1.76. The company shows a beta of 1.77, a debt-to-equity ratio of 0.13, a quick ratio of 3.64, and a current ratio of 4.10. Its 50-day moving average stands at $132.15, while the 200-day moving average is $131.75.

Quarterly Earnings Report

NVIDIA last reported its quarterly earnings on February 26th, announcing earnings per share (EPS) of $0.89, exceeding the consensus estimate of $0.84 by $0.05. The company's revenue reached $39.33 billion during the quarter, surpassing expectations of $38.16 billion. NVIDIA's net margin is an impressive 55.69%, and it boasts a return on equity of 114.83%. Analysts predict that NVIDIA will report earnings per share of 2.77 for the current year.

Dividend Announcement

Recently, NVIDIA declared a quarterly dividend to shareholders, scheduled to be paid on April 2nd. Shareholders who are on record by March 12th will receive a dividend of $0.01 per share, which translates to an annualized dividend of $0.04 and a yield of 0.04%. The current dividend payout ratio stands at 1.36%.

Insider Trading Activity

In other developments, insider Donald F. Robertson, Jr. sold 4,500 shares at an average price of $135.28, totaling $608,760.00. After the sale, he holds 480,899 shares valued at approximately $65 million, reflecting a 0.93% decrease in ownership. Similarly, CFO Colette Kress sold 66,670 shares at an average price of $135.40, amounting to $9,027,118.00. Post-transaction, she owns about 3.35 million shares worth roughly $454 million, indicating a 1.95% reduction in her stake. Recently, a total of 1,107,632 shares worth about $146 million have been sold by insiders, with insiders now holding 4.23% of the stock.

Institutional Holdings

Recent activity among hedge funds shows that several have adjusted their positions in NVIDIA. Christopher J. Hasenberg Inc acquired a new stake worth about $27,000 in the third quarter, while Tacita Capital Inc and Legend Financial Advisors made new investments of approximately $28,000 and $34,000 respectively in the fourth quarter. West Financial Advisors added a new stake valued at about $36,000 in the third quarter, and Vision Financial Markets LLC purchased shares worth $38,000 in the fourth quarter. Approximately 65.27% of NVIDIA’s stock is held by hedge funds and institutional investors.

About NVIDIA

NVIDIA Corporation specializes in providing graphics, compute, and networking solutions. Its product portfolio includes GeForce GPUs for gaming and PCs, GeForce NOW streaming services, enterprise workstation graphics, virtual GPU software, automotive platforms, and Omniverse software for metaverse and 3D applications. The company operates in various regions, including the United States, Taiwan, China, Hong Kong, and others.

NVIDIA, Earnings, Investors