Zacks Research Upgrades NVIDIA's FY2025 Earnings Expectations

NVIDIA Co. (NASDAQ:NVDA) has recently received a positive update from analysts at Zacks Research, who have increased their earnings estimates for the fiscal year 2025. In a report released on December 12th, Zacks analyst R. Department now projects that NVIDIA will earn $2.76 per share, a rise from their previous forecast of $2.60. This estimate is slightly below the current consensus expectation of $2.78 per share for NVIDIA's full-year earnings.

Furthermore, Zacks Research provided additional estimates regarding NVIDIA's quarterly earnings for FY2026, forecasting earnings of $0.82 per share for the first quarter, $0.90 for the second quarter, and $0.98 for the third quarter.

Analyst Ratings and Price Targets

NVIDIA has been a focal point in various research reports. Recently, Sanford C. Bernstein raised their price target on NVIDIA's shares from $130 to $155 while assigning an "outperform" rating. Deutsche Bank also increased its share price objective from $115 to $140, giving the stock a "hold" rating. Additionally, Rosenblatt Securities maintained a "buy" rating with a price target of $200. Loop Capital and Bank of America also reiterated their "buy" ratings, setting price targets of $175 and $190, respectively. Overall, out of the analysts covering NVIDIA, four have recommended a hold rating, thirty-nine have a buy rating, and one has rated it as a strong buy. MarketBeat data shows that the stock enjoys a "Moderate Buy" average rating with a target price of $164.15.

NVIDIA Stock Performance

On December 17th, NVIDIA's stock opened at $132.00 and holds a market capitalization of $3.23 trillion. Its current price-to-earnings (P/E) ratio stands at 51.95, with a price-to-earnings growth (PEG) ratio of 2.43 and a beta of 1.63. Over the past year, the stock has experienced significant volatility, reaching a low of $47.32 and a high of $152.89. NVIDIA’s solvency ratios also reflect strong financial health, with a debt-to-equity ratio of 0.13 and current ratios of 4.10 and 3.64 for quick ratios.

In its most recent earnings report, released on November 20th, NVIDIA reported earnings of $0.81 per share, exceeding climate forecasts of $0.69 by $0.12. The company reported revenues of $35.08 billion for the quarter, which was well above the expected $33.15 billion, showcasing a significant year-over-year growth of 93.6% compared to the same quarter last year.

Stock Buyback and Dividend Announcement

On August 28th, NVIDIA's Board of Directors approved a substantial stock buyback program, enabling the company to repurchase up to $50 billion in shares. This buyback initiative often indicates that the board believes the company's stock is undervalued in the market.

Additionally, NVIDIA announced an upcoming quarterly dividend to be paid on December 27th. A dividend of $0.01 per share will be distributed to shareholders of record as of December 5th, representing an annualized dividend of $0.04 with a yield of 0.03%. The current payout ratio for NVIDIA is low at 1.57%.

Insider Transactions and Institutional Investments

Recent insider trading activity has seen Director John Dabiri sell 716 shares at an average price of $142, resulting in a total transaction worth approximately $101,672. Following this transaction, Dabiri retains ownership of 19,942 shares. Another insider, Donald F. Robertson, Jr., also sold 4,500 shares, valued at around $524,295. Insider selling is a common occurrence, and over the last quarter, insiders sold over 1.6 million shares, amounting to about $198 million.

Institutional investment interest in NVIDIA remains strong, with numerous financial institutions adjusting their holdings. For instance, DHJJ Financial Advisors significantly boosted its stake by 1,900% in the second quarter, now owning 200 shares worth $25,000. Other firms, such as Christopher J. Hasenberg Inc. and CGC Financial Services LLC, have also established new positions in NVIDIA shares. Currently, about 65.27% of NVIDIA's stock is held by institutional investors and hedge funds.

A Closer Look at NVIDIA

NVIDIA Corporation is recognized for its innovative graphics and computing solutions, serving markets across the globe, including the US, Taiwan, China, and beyond. Its product offerings include GeForce GPUs for gaming, the GeForce NOW streaming service, enterprise workstation graphics, and automotive platforms. NVIDIA continues to be a major player in the tech field, paving the way for advancements in gaming, AI, and more.

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