NVIDIA (NASDAQ:NVDA) Stock Price Up 2.9% – Time to Buy?

Shares of NVIDIA Corporation (NASDAQ:NVDA) shot up 2.9% during mid-day trading on Wednesday. The company traded as high as $177.54 and last traded at $173.73. 267,044,548 shares traded hands during mid-day trading, an increase of 75% from the average session volume of 152,563,109 shares. The stock had previously closed at $168.89.

Top NVIDIA Stories

Investors following NVDA have been watching these stories:

• Positive Sentiment: NVIDIA’s established product roadmap and continuing investment in AI infrastructure may help sustain demand through the leadership transition. Investors will look for confirmation in the company’s fiscal third-quarter results and outlook, scheduled for November 17. Article: Checkmate for AI Chips? NVIDIA’s Crisis Opens the Board
• Positive Sentiment: Some analysts remain bullish despite recent target cuts, and Quiver’s roundup reports 20 recent buy ratings and no sell ratings. Barclays maintained an Overweight rating, while lowering its target. Article: Fund Update—NVIDIA shares added to ARK’s portfolio
• Negative Sentiment: Huang’s resignation leaves CFO Colette Kress as interim CEO while the board searches for a permanent successor. Investors face uncertainty about strategy and execution without the founder long associated with NVIDIA’s growth. Article: Arm’s Haas approached by Nvidia board as part of CEO search

Analyst Upgrades and Downgrades

NVDA has been the subject of several research analyst reports. Truist Financial cut NVIDIA from a “buy” rating to a “hold” rating and cut their price target for the company from $346.00 to $174.00 in a report on Thursday. Yorkville Ives initiated coverage on shares of NVIDIA in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $300.00 price objective for the company. William Blair lowered NVIDIA from an “outperform” rating to a “market perform” rating in a research note on Thursday. KeyCorp lowered NVIDIA from an “overweight” rating to a “sector weight” rating in a report on Thursday. Finally, Wedbush set a $345.00 price objective on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday. Five investment analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $278.54.

NVIDIA Stock Down 1.8%

The business has a 50-day moving average of $215.96 and a 200-day moving average of $204.25. The stock has a market capitalization of $3.93 trillion, a price-to-earnings ratio of 20.51, a P/E/G ratio of 1.34 and a beta of 2.21. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.05 earnings per share. On average, sell-side analysts expect that NVIDIA Corporation will post 9.29 EPS for the current year.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

NVIDIA announced that its Board of Directors has authorized a stock buyback plan on Monday, September 28th that permits the company to buy back $150 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Share repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Transactions at NVIDIA

In other news, EVP Timothy Teter sold 30,460 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Corporate insiders own 3.94% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

Several hedge funds have recently bought and sold shares of the stock. Coign Capital Advisors LLC raised its stake in shares of NVIDIA by 4.2% in the third quarter. Coign Capital Advisors LLC now owns 8,260 shares of the computer hardware maker’s stock valued at $1,887,000 after buying an additional 331 shares during the period. New World Advisors LLC increased its stake in shares of NVIDIA by 7.1% in the third quarter. New World Advisors LLC now owns 44,599 shares of the computer hardware maker’s stock worth $10,186,000 after purchasing an additional 2,956 shares in the last quarter. State Board of Administration of Florida Retirement System lifted its stake in shares of NVIDIA by 7.5% during the 3rd quarter. State Board of Administration of Florida Retirement System now owns 21,391,428 shares of the computer hardware maker’s stock valued at $4,885,374,000 after buying an additional 1,491,722 shares in the last quarter. 49 Wealth Management LLC lifted its stake in shares of NVIDIA by 246.9% during the 3rd quarter. 49 Wealth Management LLC now owns 33,862 shares of the computer hardware maker’s stock valued at $7,733,000 after buying an additional 24,102 shares in the last quarter. Finally, Reliant Wealth Planning grew its stake in NVIDIA by 123.6% in the 3rd quarter. Reliant Wealth Planning now owns 5,906 shares of the computer hardware maker’s stock valued at $1,349,000 after buying an additional 3,265 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications. NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.