NVIDIA (NASDAQ:NVDA) Shares Up 1.8% - What's Next?

NVIDIA Corporation (NASDAQ:NVDA) saw its stock price increase by 1.8% during trading on Thursday, soaring as high as $132.06 before settling at $131.28. On this day, around 69,340,947 shares were traded, marking a significant decline of 82% compared to the average daily trading volume of 382,614,281 shares. The previous closing price for NVIDIA stock was $128.91.

Analyst Perspectives

Multiple analysts have recently commented on NVIDIA's stock. On November 12th, Redburn Atlantic initiated coverage of NVIDIA, giving it a "buy" rating with a target price of $178.00. Barclays also updated their target, increasing it from $145.00 to $160.00 while maintaining an "overweight" rating as of November 21st. Mizuho raised their target price from $165.00 to $175.00 with an "outperform" rating. Citigroup similarly adjusted their price target, increasing it from $170.00 to $175.00 while affirming a "buy" rating on the stock. Additionally, Rosenblatt Securities reiterated their "buy" rating with a target of $200.00 as of November 18th. Among all equity analysts, four have rated the stock as a hold, thirty-nine have rated it a buy, and one has assigned a strong buy rating. The average rating currently stands at a "Moderate Buy" with a consensus target price of $164.15.

NVIDIA Stock Performance

NVIDIA's stock has shown resilience, currently maintaining a quick ratio of 3.64 and a current ratio of 4.10, indicating strong liquidity. Its debt-to-equity ratio is also favorable at 0.13. The company's market capitalization is impressive at $3.23 trillion, with a price-to-earnings (PE) ratio of 51.88 and a price-to-earnings growth (PEG) ratio of 2.43. The stock has a beta of 1.63, showing it is more volatile than the market. The company's 50-day moving average stands at $139.72, while the 200-day moving average is $127.08.

Earnings and Financial Update

NVIDIA recently announced its quarterly earnings on November 20th, reporting earnings of $0.81 per share. This is better than analysts' consensus estimate of $0.69, indicating a positive surprise of $0.12. The company's return on equity was an impressive 114.83%, with a net margin of 55.69%. The revenue for the quarter reached $35.08 billion, surpassing expectations of $33.15 billion and reflecting a 93.6% increase compared to the same quarter last year. Analysts predict NVIDIA will report an average earnings per share of 2.78 for the current year.

Dividend Information

NVIDIA recently announced a quarterly dividend that will be paid on December 27th. Shareholders who own stocks by December 5th will receive a dividend of $0.01 per share, leading to an annualized dividend of $0.04, resulting in a dividend yield of 0.03%. The dividend payout ratio is currently 1.57%. Furthermore, NVIDIA's board approved a significant share buyback program in August, aiming to repurchase up to $50.00 billion in outstanding shares, indicating management’s belief that the stock is undervalued.

Insider Activity

In notable insider news, Director Tench Coxe sold 1,000,000 shares of NVIDIA on December 16th at an average price of $131.26, totaling $131,260,000. Following the transaction, Coxe now owns approximately 28,671,360 shares valued at around $3.76 billion. This sale represented a 3.37% decrease of his stake. Another insider, Donald F. Robertson, Jr., sold 4,500 shares on December 13th, valued at $608,760. Insiders have sold a total of 1,628,156 shares valued at $209,985,077 in the last 90 days, with corporate insiders owning about 4.23% of the stock.

Institutional Investor Activity

Recent changes in positions by institutional investors reflect growing interest in NVIDIA. For example, Christopher J. Hasenberg Inc, CGC Financial Services LLC, Quest Partners LLC, and others have made new investments during the second and third quarters of this year. Notably, Gleason Group Inc. increased their holdings by 900.0%, now owning 280 shares worth $35,000. Institutional ownership of NVIDIA stands at approximately 65.27%.

NVIDIA Overview

NVIDIA Corporation is known for its innovative graphics and computing solutions on a global scale, providing products such as GeForce GPUs for gaming and personal computers, as well as its GeForce NOW game streaming service. Additionally, NVIDIA's expertise extends to enterprise graphics, cloud computing, automotive infotainment solutions, and software for building metaverse applications.

Conclusion

As NVIDIA's stock rises and analysts remain bullish about its future, potential investors may wonder if now is the right time to buy. With recent upgrades in ratings, positive earnings releases, and significant institutional interest, NVIDIA is definitely a company to keep an eye on in the stock market.

NVIDIA, Stocks, Buy