NVIDIA Corporation (NASDAQ:NVDA – Get Free Report) has received a consensus recommendation of “Buy” from the fifty-five research firms that are presently covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation, forty-eight have given a buy recommendation and five have assigned a strong buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $318.75.
A number of equities research analysts have issued reports on the company. Mizuho set a $250.00 target price on NVIDIA in a research note on Monday. Stifel Nicolaus set a $315.00 price objective on shares of NVIDIA in a research note on Thursday, August 27th. Wells Fargo & Company dropped their price target on shares of NVIDIA from $315.00 to $300.00 and set an “overweight” rating on the stock in a research report on Tuesday. The Goldman Sachs Group reiterated a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a research report on Monday. Finally, KGI Securities lifted their target price on shares of NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th.
Get Our Latest Analysis on NVIDIA
Key NVIDIA News
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: NVIDIA, Rebellions and SK Telecom announced a collaboration to combine NVIDIA’s NVLink Fusion and infrastructure with Korean-designed AI processors, supporting the company’s effort to expand its platform and partnerships. Article: NVIDIA, Rebellions and SK Telecom collaboration
- Neutral Sentiment: Some analysts remain positive despite trimming targets: Citi lowered its target but kept a Buy rating, while Wells Fargo cut its target and maintained Overweight. Investors are also looking ahead to NVIDIA’s November 17 earnings report. Article: Nvidia Stock Falls as Citi Trims Price Target
- Negative Sentiment: The board has retained outside counsel for an independent investigation into reports that Huang was targeted by a foreign intelligence effort. FBI and congressional scrutiny raises risks of reputational damage, governance concerns and possible regulatory attention; investors are also focused on NVIDIA’s reliance on Huang and lack of a clear public succession plan. Article: Nvidia hires law firm to lead Jensen Huang probe
- Negative Sentiment: A report alleged that Huang’s relationship with Alice Huang helped facilitate at least $7.5 billion in chip shipments to Chinese firms, including companies reportedly subject to restrictions. The claims have not been established, and Reuters could not independently verify the report, but they intensify export-control and national-security concerns. Article: Why Nvidia Stock Just Fell Again
- Negative Sentiment: Shareholder securities class actions have been filed alleging investors were not adequately informed; the claims are allegations, not findings of wrongdoing. Separately, rising Treasury yields and a broader technology sell-off are weighing on growth-stock valuations. Article: NVIDIA securities class action notice
NVIDIA Trading Down 5.5%
NASDAQ NVDA opened at $168.93 on Wednesday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company has a 50-day simple moving average of $217.99 and a 200-day simple moving average of $204.42. NVIDIA has a one year low of $164.27 and a one year high of $243.37. The firm has a market capitalization of $4.07 trillion, a PE ratio of 21.36, a price-to-earnings-growth ratio of 1.37 and a beta of 2.21.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.05 EPS. On average, equities analysts forecast that NVIDIA will post 9.30 earnings per share for the current year.
NVIDIA declared that its board has approved a stock buyback program on Monday, September 28th that allows the company to buy back $150 billion in shares. This buyback authorization allows the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Share buyback programs are usually an indication that the company’s board believes its shares are undervalued.
NVIDIA Announces Dividend
The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. NVIDIA’s payout ratio is presently 12.64%.
Insider Transactions at NVIDIA
In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Jupiter Topco LLC acquired a new stake in NVIDIA during the 2nd quarter worth $16,156,076,000. Van ECK Associates Corp grew its stake in shares of NVIDIA by 34.7% during the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after acquiring an additional 19,522,304 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in NVIDIA in the 3rd quarter valued at $3,921,459,000. State Street Corp increased its position in shares of NVIDIA by 1.6% in the second quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker’s stock valued at $202,047,568,000 after acquiring an additional 15,897,836 shares during the last quarter. Finally, Amundi raised its holdings in NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after acquiring an additional 12,575,177 shares in the last quarter. Institutional investors and hedge funds 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.
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