NVIDIA (NASDAQ:NVDA) Stock Price Up 2.5% – Still a Buy?

01 Nov 2024, 17:24 by Danessa Lincoln · The Markets Daily

NVIDIA Co. (NASDAQ:NVDA – Get Free Report) rose 2.5% on Friday . The company traded as high as $137.31 and last traded at $136.11. Approximately 75,795,674 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 408,360,156 shares. The stock had previously closed at $132.76.

Wall Street Analysts Forecast Growth

NVDA has been the subject of a number of analyst reports. Craig Hallum boosted their price target on NVIDIA from $125.00 to $165.00 and gave the stock a “buy” rating in a report on Thursday, August 29th. New Street Research upgraded NVIDIA from a “neutral” rating to a “buy” rating and set a $120.00 target price for the company in a research note on Tuesday, August 6th. Robert W. Baird upped their target price on NVIDIA from $120.00 to $150.00 and gave the company an “outperform” rating in a research note on Thursday, August 29th. Mizuho upped their target price on NVIDIA from $132.00 to $140.00 and gave the company an “outperform” rating in a research note on Thursday, August 29th. Finally, The Goldman Sachs Group upped their target price on NVIDIA from $135.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, October 11th. Five investment analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $143.07.

Read Our Latest Analysis on NVIDIA

NVIDIA Trading Up 2.4 %

The company has a current ratio of 4.27, a quick ratio of 3.79 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $3.34 trillion, a price-to-earnings ratio of 63.84, a PEG ratio of 1.47 and a beta of 1.67. The firm has a 50-day moving average of $125.13 and a 200 day moving average of $115.47.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, August 28th. The computer hardware maker reported $0.68 EPS for the quarter, beating the consensus estimate of $0.64 by $0.04. The firm had revenue of $30.04 billion for the quarter, compared to analysts’ expectations of $28.74 billion. NVIDIA had a return on equity of 113.50% and a net margin of 55.04%. The firm’s revenue was up 122.4% compared to the same quarter last year. During the same period last year, the firm earned $0.25 EPS. As a group, equities analysts predict that NVIDIA Co. will post 2.65 EPS for the current fiscal year.

NVIDIA Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 3rd. Shareholders of record on Thursday, September 12th were paid a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 0.03%. The ex-dividend date was Thursday, September 12th. NVIDIA’s payout ratio is currently 1.88%.

NVIDIA declared that its Board of Directors has initiated a share repurchase plan on Wednesday, August 28th that permits the company to buyback $50.00 billion in shares. This buyback authorization permits the computer hardware maker to purchase up to 1.6% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CEO Jen Hsun Huang sold 120,000 shares of the stock in a transaction on Monday, August 5th. The stock was sold at an average price of $99.81, for a total transaction of $11,977,200.00. Following the completion of the transaction, the chief executive officer now directly owns 77,094,995 shares of the company’s stock, valued at approximately $7,694,851,450.95. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, Director Mark A. Stevens sold 155,000 shares of the firm’s stock in a transaction on Wednesday, October 9th. The stock was sold at an average price of $132.27, for a total value of $20,501,850.00. Following the completion of the sale, the director now owns 8,100,117 shares of the company’s stock, valued at $1,071,402,475.59. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Jen Hsun Huang sold 120,000 shares of the firm’s stock in a transaction on Monday, August 5th. The stock was sold at an average price of $99.81, for a total value of $11,977,200.00. Following the completion of the sale, the chief executive officer now directly owns 77,094,995 shares of the company’s stock, valued at approximately $7,694,851,450.95. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,516,270 shares of company stock valued at $291,803,127. 4.23% of the stock is owned by corporate insiders.

Institutional Trading of NVIDIA

Several hedge funds and other institutional investors have recently modified their holdings of the business. CWA Asset Management Group LLC acquired a new stake in shares of NVIDIA in the third quarter worth $125,738,000. Source Financial Advisors LLC raised its holdings in shares of NVIDIA by 7.4% during the third quarter. Source Financial Advisors LLC now owns 23,495 shares of the computer hardware maker’s stock worth $2,853,000 after acquiring an additional 1,618 shares in the last quarter. ABLE Financial Group LLC raised its holdings in shares of NVIDIA by 5.1% during the third quarter. ABLE Financial Group LLC now owns 30,837 shares of the computer hardware maker’s stock worth $3,745,000 after acquiring an additional 1,486 shares in the last quarter. Strategic Family Wealth Counselors L.L.C. raised its holdings in shares of NVIDIA by 3.8% during the third quarter. Strategic Family Wealth Counselors L.L.C. now owns 31,003 shares of the computer hardware maker’s stock worth $3,765,000 after acquiring an additional 1,145 shares in the last quarter. Finally, SFG Wealth Management LLC. raised its holdings in shares of NVIDIA by 44.0% during the third quarter. SFG Wealth Management LLC. now owns 2,535 shares of the computer hardware maker’s stock worth $308,000 after acquiring an additional 774 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Company Profile

(Get Free Report)

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.