NVIDIA Stock Rises 1.7% Following Analyst Upgrade

NVIDIA Corporation (NASDAQ:NVDA) saw its stock price increase by 1.7% during trading on Monday. This rise came after Bank of America upgraded their price target on NVIDIA shares from $165.00 to $190.00. Currently, Bank of America has a buy rating on the stock. During the session, NVIDIA's stocks peaked at $141.80 before settling at $140.40. The total volume of shares traded was 85,534,805, which is significantly lower—a decline of 79%—compared to the average session volume of 417,056,594 shares. Prior to this increase, the stock had closed at $138.00.

Other financial institutions have also recently reassessed NVIDIA's value. For instance, Evercore ISI raised its price target from $145.00 to $150.00 while maintaining an "outperform" rating on August 23rd. Similarly, Mizuho increased its target from $132.00 to $140.00 with an "outperform" rating on August 29th. Loop Capital reiterated a buy rating with a price target of $175.00 on August 26th, while Truist Financial raised its price target from $140.00 to $145.00 and assigned a buy rating on August 27th. Additionally, on August 6th, New Street Research upgraded NVIDIA from a neutral to a buy rating with a price target of $120.00. Currently, there are five analysts with a hold rating, thirty-seven with a buy rating, and two with a strong buy rating on NVIDIA stock. According to MarketBeat, the overall rating for NVIDIA stands at "Moderate Buy" with an average target price of $143.07.

Recent Insider Transactions

In recent insider activities, Director Mark A. Stevens sold 155,000 shares of the company's stock on October 9th. The shares were sold at an average price of $132.27, resulting in a total value of $20,501,850.00. After this transaction, Stevens continues to hold 8,100,117 shares of NVIDIA, worth about $1,071,402,475.59, which reflects no change in his stock ownership percentage. Additionally, CEO Jen Hsun Huang sold 120,000 shares at an average price of $117.24 on July 24th, totaling $14,068,800. Following the sale, Huang possesses 78,054,995 shares valued at approximately $9,151,167,613.80. Overall, insiders have sold 2,876,270 shares worth around $333,061,527 in the last quarter, retaining a 4.23% ownership stake in the company.

Institutional Investors and Ownership Distribution

Recent changes in stakes among institutional investors indicate growing interest in NVIDIA. Legal & General Group Plc increased its position by a staggering 884.0% in the second quarter, now owning 213,127,959 shares valued at $26,329,751,000. Similarly, Bank of New York Mellon Corp raised its holdings by 854.1%, reaching 182,622,629 shares worth approximately $22,561,200,000. Ameriprise Financial Inc. also increased its stakes by 870.3% to own 102,422,225 shares valued at $12,658,922,000. Dimensional Fund Advisors LP and Massachusetts Financial Services Co. MA grew their stakes significantly, with increases of 1,123.2% and 808.6%, respectively. Overall, institutional investors now hold 65.27% of NVIDIA's stock.

NVIDIA's Financial Performance

NVIDIA's average price over the last 50 days stands at $122.58, while its 200-day average is $112.92. The company's market capitalization is $3.53 trillion, with a P/E ratio of 67.41 and a price-to-earnings-growth ratio of 1.25. Its debt-to-equity ratio is low at 0.15, and it boasts a strong current ratio of 4.27 and a quick ratio of 3.79. NVIDIA’s earnings results released on August 28th showed earnings per share (EPS) of $0.68, exceeding the anticipated $0.64. The company reported revenues of $30.04 billion for the quarter, surpassing the expected $28.74 billion, marking a remarkable year-over-year revenue growth of 122.4%. Analysts forecast NVIDIA to post an EPS of 2.65 for the current year.

Dividend Payment and Stock Buyback Plan

NVIDIA recently announced a quarterly dividend that was paid on October 3rd. Shareholders recorded on September 12th received a dividend of $0.01 per share, representing an annualized dividend of $0.04 with a yield of 0.03%. The payout ratio is very low at 1.88%. Furthermore, on August 28th, NVIDIA's board approved a substantial stock repurchase plan allowing the repurchase of $50 billion worth of shares, indicating management's belief that the stock is undervalued in today’s market.

Overview of NVIDIA Corporation

NVIDIA Corporation specializes in providing a range of graphics and computing solutions across the globe, including in the United States, Taiwan, China, and beyond. The company offers various products, such as GeForce GPUs catering to gaming and PCs, Quadro/NVIDIA RTX GPUs for professional graphics, and comprehensive virtual GPU software supporting cloud computing. Additionally, it provides automotive platforms for infotainment systems and software for the metaverse.

NVIDIA, Stock, Analyst