NVIDIA (NASDAQ:NVDA) Stock Price Up 1.3% – Here’s Why

NVIDIA Corporation (NASDAQ:NVDAGet Free Report) shares were up 1.3% during trading on Monday . The stock traded as high as $196.18 and last traded at $194.97. Approximately 146,664,141 shares were traded during trading, a decline of 14% from the average daily volume of 169,994,344 shares. The stock had previously closed at $192.53.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on NVDA. Argus increased their price target on NVIDIA from $220.00 to $270.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Melius Research set a $400.00 price target on shares of NVIDIA in a research report on Thursday, May 21st. Rosenblatt Securities reaffirmed a “buy” rating and issued a $325.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Wall Street Zen raised shares of NVIDIA from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 23rd. Finally, China Renaissance assumed coverage on NVIDIA in a research note on Friday, June 5th. They issued a “buy” rating and a $319.00 price objective on the stock. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $303.84.

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NVIDIA Price Performance

The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm’s 50 day simple moving average is $210.57 and its 200 day simple moving average is $193.24. The company has a market capitalization of $4.79 trillion, a PE ratio of 30.30, a price-to-earnings-growth ratio of 0.43 and a beta of 2.22.

NVIDIA (NASDAQ:NVDAGet Free Report) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the firm posted $0.81 earnings per share. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. As a group, research analysts anticipate that NVIDIA Corporation will post 8.69 EPS for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date was Thursday, June 4th. NVIDIA’s dividend payout ratio (DPR) is presently 15.31%.

NVIDIA declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In related news, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John Dabiri sold 625 shares of the company’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by insiders.

Institutional Trading of NVIDIA

Large investors have recently made changes to their positions in the stock. Spectrum Financial Alliance Ltd LLC boosted its holdings in shares of NVIDIA by 3.8% in the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock valued at $243,000 after purchasing an additional 51 shares during the period. Presidio Capital Management LLC raised its position in NVIDIA by 0.4% during the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker’s stock valued at $2,823,000 after purchasing an additional 53 shares in the last quarter. LMG Wealth Partners LLC raised its position in NVIDIA by 0.7% during the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock valued at $1,427,000 after purchasing an additional 53 shares in the last quarter. Vision Financial Markets LLC lifted its holdings in shares of NVIDIA by 1.2% in the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after buying an additional 53 shares during the period. Finally, Cyr Financial Inc. grew its position in shares of NVIDIA by 0.7% during the 3rd quarter. Cyr Financial Inc. now owns 7,737 shares of the computer hardware maker’s stock worth $1,444,000 after buying an additional 54 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Company Profile

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NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

Further Reading

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