Wedbush Reiterates Outperform Rating for NVIDIA

On Thursday, Wedbush, an investment research firm, reiterated its "outperform" rating for NVIDIA (NASDAQ: NVDA) in a recent research note shared with clients and investors. The analysts have set a target price of $175.00 for NVIDIA's shares, indicating a potential upside of 25.28% based on the stock's current trading price.

Recent Analyst Upgrades

NVIDIA has received positive feedback from other financial analysts as well. For instance, Robert W. Baird increased their target price for the stock from $150.00 to $190.00, continuing to rate it as "outperform." Similarly, Melius Research raised its price target from $165.00 to $185.00 while maintaining a "buy" rating. On the other hand, Piper Sandler adjusted its price objective from $140.00 to $175.00 and rated the stock as "overweight." Cantor Fitzgerald also reiterated an "overweight" rating, setting a target of $200.00. Furthermore, JPMorgan Chase & Co. increased their price objective from $155.00 to $170.00 with an "overweight" rating. Currently, the majority of analysts recommend buying the stock, with 37 buy ratings, two strong buy ratings, and four hold ratings, leading to a consensus rating of "Moderate Buy" and an average target price of $168.21 according to MarketBeat.com.

NVIDIA Stock Performance

During midday trading on Thursday, NVIDIA's stock saw a 0.3% increase, reaching $139.68. The trading volume was around 73,245,136 shares, while the average volume typically sits at 264,416,500. The company holds a market capitalization of approximately $3.42 trillion. Key financial ratios include a price-to-earnings (P/E) ratio of 54.97, a current ratio of 4.10, and a quick ratio of 3.64, indicating a strong financial position.

Financial Results Insights

NVIDIA reported its latest earnings on November 20, revealing an earnings per share (EPS) of $0.81, surpassing analyst expectations of $0.69. The company reported total revenues of $35.08 billion for the quarter, significantly exceeding predictions of $33.15 billion. This represents a remarkable 93.6% increase in revenue compared to the same quarter in the previous year. Analysts anticipate that NVIDIA will report an EPS of 2.77 for the current fiscal year.

Insider Trading Activity

Recently, some insiders have sold shares of NVIDIA. For example, Director John Dabiri sold 716 shares at an average price of $142.00, totaling approximately $101,672. This sale resulted in Dabiri's ownership decreasing by 3.47%. Similarly, insider Donald F. Robertson, Jr. sold 4,500 shares at an average price of $135.28, with a total transaction value of around $608,760. As a result, he now owns approximately 480,899 shares of NVIDIA. Over the past three months, insiders have sold a total of 1,108,348 shares valued at roughly $146,506,958. Insiders currently hold about 4.23% of the stock.

Institutional Investments in NVIDIA

Several hedge funds have recently altered their holdings in NVIDIA. Norges Bank acquired a significant new stake valued at $43.5 billion in the fourth quarter. Another institutional investor, Legal & General Group Plc, increased its holdings by 884% during the second quarter, now owning 213 million shares worth about $26.33 billion after acquiring an additional 191 million shares. Other firms, such as Ameriprise Financial Inc. and International Assets Investment Management LLC, have also significantly increased their stakes in NVIDIA, indicating strong institutional interest in the company. Currently, institutions and hedge funds own about 65.27% of NVIDIA's stock.

About NVIDIA Corporation

NVIDIA Corporation is a leading provider of graphics and computing solutions. The company operates across various markets, including the U.S., Taiwan, China, and Hong Kong. Its product line includes GeForce GPUs for gaming, the GeForce NOW gaming service, enterprise workstation graphics through Quadro/NVIDIA RTX GPUs, and advanced automotive platforms for infotainment systems. NVIDIA is also involved in developing software for the metaverse and 3D internet applications.

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