NVIDIA Stock Price Increases Following Analyst Upgrade

NVIDIA Corporation (NASDAQ:NVDA) experienced a 1.7% rise in its stock price during trading on Monday, following an upgrade by Bank of America. The financial institution raised its price target for NVIDIA from $165.00 to $190.00, maintaining a ‘buy’ rating on the stock. During the trading session, NVIDIA shares reached a high of $141.80 and were last seen trading at $140.40. Approximately 85,534,805 shares were exchanged, marking a significant 79% decrease from the average volume of 417,056,594 shares. The previous closing price was $138.00.

Several other financial analysts have also recently provided their assessments of NVIDIA's stock. Evercore ISI increased its price target from $145.00 to $150.00, rating the company as an ‘outperform’ in a report dated August 23. Mizuho raised its price target from $132.00 to $140.00 and issued a similar ‘outperform’ rating in a report from August 29. Loop Capital reiterated a ‘buy’ rating while setting a price target of $175.00 on August 26. Truist Financial also upped its price target from $140.00 to $145.00 and rated the stock as a ‘buy’ in a report from August 27. Meanwhile, New Street Research upgraded NVIDIA from ‘neutral’ to ‘buy’ and assigned a price target of $120.00 on August 6. Overall, five analysts have rated the stock with a hold rating, while thirty-seven have issued a buy rating, and two have rated it as a strong buy. Currently, the average rating for NVIDIA is ‘Moderate Buy’ with a target price of $143.07 according to MarketBeat.

Recent Insider Transactions

In corporate news, NVIDIA's director Mark A. Stevens sold 155,000 shares of his stock on October 9 at an average price of $132.27, totaling about $20.5 million. After this sale, he maintains ownership of 8,100,117 shares, valued at around $1.07 billion. Similarly, CEO Jen Hsun Huang sold 120,000 shares on July 24 at an average price of $117.24, amounting to roughly $14.1 million. Post-transaction, he holds 78,054,995 shares worth approximately $9.15 billion. In the preceding quarter, insiders collectively sold 2,876,270 shares for $333.1 million. Currently, insiders possess about 4.23% of the company’s stock.

Institutional Investor Movements

Numerous institutional investors have either increased or decreased their stakes in NVIDIA recently. Legal & General Group Plc notably boosted its position by 884%, acquiring 213,127,959 shares valued at approximately $26.3 billion. Bank of New York Mellon Corp significantly raised its holdings by 854.1%, owning 182,622,629 shares worth around $22.6 billion after adding 163,482,580 shares. Ameriprise Financial Inc. also increased its stake by 870.3%, now controlling 102,422,225 shares valued at $12.7 billion. Dimensional Fund Advisors LP raised its holdings by 1,123.2%, owning 92,039,713 shares valued at roughly $11.4 billion. Finally, Massachusetts Financial Services Co. MA saw an increase of 808.6% in its shares, now holding 82,689,605 shares valued at about $10.2 billion. Institutional investors together own 65.27% of the company's stock.

NVIDIA's Stock Performance Metrics

NVIDIA's stock has a 50-day moving average price of $122.58 and a 200-day moving average price of $112.92. The company boasts a market capitalization of $3.53 trillion, a price-to-earnings (P/E) ratio of 67.41, and a price-to-earnings-growth (P/E/G) ratio of 1.25, with a beta value of 1.67. Its debt-to-equity ratio is 0.15, while its current and quick ratios are 4.27 and 3.79, respectively.

Earnings Report and Dividend Changes

NVIDIA recently disclosed its earnings results on August 28, announcing earnings of $0.68 per share for the quarter, surpassing the consensus estimate of $0.64 by $0.04. The company reported revenue of $30.04 billion, exceeding analysts’ expectations of $28.74 billion, and showcasing a 122.4% increase year-over-year. Last year, in the same quarter, NVIDIA had reported $0.25 earnings per share. Analysts project that NVIDIA will achieve an EPS of 2.65 for the current year.

In terms of dividends, NVIDIA announced a quarterly dividend, which was paid on October 3. Shareholders of record as of September 12 received a dividend of $0.01 per share, representing an annualized yield of 0.03%. The company's payout ratio stands at 1.88%.

Stock Repurchase Plan

On August 28, NVIDIA’s board approved a substantial stock repurchase plan, allowing for the buyback of up to $50 billion worth of shares. This initiative signifies the company's belief that its stock may be undervalued, as it enables the purchase of up to 1.6% of its shares through open market transactions.

Overview of NVIDIA Corporation

NVIDIA Corporation is a major provider of graphics and computing solutions globally. Its Graphics segment specializes in GeForce GPUs designed for gaming and personal computers, as well as the GeForce NOW game streaming service. The company also provides solutions for enterprise workstations, automotive platforms, and software for metaverse applications.

NVIDIA, Stock, Update