NVIDIA (NASDAQ:NVDA) Stock Price Increases by 1.7% Following Analyst Upgrade

NVIDIA Co. (NASDAQ:NVDA – Get Free Report) saw its stock price rise by 1.7% during trading on Monday after an upgrade from Bank of America. They increased their price target for NVIDIA shares from $165.00 to $190.00, maintaining a buy rating on the stock. During the trading session, NVIDIA reached a high of $141.80 before closing at $140.40. A total of 85,534,805 shares changed hands, representing a significant decline of 79% from the average trading volume of 417,056,594 shares. The previous closing price for the stock was $138.00.

Several other investment firms have also recently updated their ratings and price targets for NVIDIA. For instance, Evercore ISI raised its price target for NVIDIA from $145.00 to $150.00, maintaining an "outperform" rating in their report dated August 23rd. Similarly, Mizuho increased their target from $132.00 to $140.00 in a report released on August 29th, also assigning an "outperform" rating. Loop Capital reiterated a "buy" rating and set a price target of $175.00 on August 26th. Truist Financial raised its target for NVIDIA from $140.00 to $145.00 with a "buy" rating on August 27th, while New Street Research upgraded the stock from "neutral" to "buy," setting a price target of $120.00 on August 6th. Overall, five analysts have given NVIDIA a hold rating, while 37 have issued a buy rating, and two have recommended a strong buy. According to MarketBeat, NVIDIA currently holds an average rating of "Moderate Buy" with an average target price of $143.07.

Check Out Our Latest Research Report on NVIDIA

NVIDIA Insider Trading Activity

In other news, NVIDIA Director Mark A. Stevens sold 155,000 shares of the company's stock on October 9th. The shares were sold at an average price of $132.27, resulting in a total transaction value of $20,501,850. Following this sale, he retains ownership of 8,100,117 shares, valued at approximately $1,071,402,475. This sale represented a 0.00% decrease in his total ownership. This transaction was disclosed in a filing with the SEC. Additionally, CEO Jen Hsun Huang sold 120,000 shares on July 24th for an average price of $117.24, amounting to a total of $14,068,800. Following the sale, he holds 78,054,995 shares valued at around $9,151,167,613. Like Stevens, this sale also represented a 0.00% decrease in his ownership. In total, insiders have sold 2,876,270 shares worth $333,061,527 over the last quarter, with company insiders owning 4.23% of NVIDIA's stock.

Institutional Investor Activity

Recently, several large institutional investors have made significant adjustments to their stakes in NVIDIA. Legal & General Group Plc notably increased its position by 884.0% in the second quarter, acquiring an additional 191,469,114 shares, bringing its total to 213,127,959 shares valued at $26,329,751,000. Bank of New York Mellon Corp also raised its holdings by 854.1%, owning 182,622,629 shares worth $22,561,200,000 after purchasing 163,482,580 more shares last quarter. Ameriprise Financial Inc. similarly raised its holdings by 870.3%, bringing its total to 102,422,225 shares valued at $12,658,922,000 after acquiring an additional 91,867,031 shares. Dimensional Fund Advisors LP increased their holdings by 1,123.2% and now holds 92,039,713 shares, worth $11,371,255,000 after acquiring 84,515,429 additional shares. Massachusetts Financial Services Co. MA also grew its stake by 808.6%, owning 82,689,605 shares valued at $10,215,474,000 after acquiring 73,589,208 shares during the same period. Institutional investors collectively own 65.27% of NVIDIA's shares.

Performance Overview of NVIDIA

NVIDIA's 50-day moving average price is $122.58, while its 200-day moving average price is $112.92. The company has a market capitalization of $3.53 trillion, a price-to-earnings (P/E) ratio of 67.41, and a price-to-earnings-growth (PEG) ratio of 1.25, with a beta of 1.67. Furthermore, NVIDIA boasts a debt-to-equity ratio of 0.15, a current ratio of 4.27, and a quick ratio of 3.79.

The company last reported its earnings on August 28th, where it posted earnings per share (EPS) of $0.68, surpassing the consensus estimate of $0.64 by $0.04. NVIDIA's revenue for the quarter amounted to $30.04 billion, exceeding analyst expectations of $28.74 billion. The firm recorded a remarkable return on equity of 113.50% and a net margin of 55.04%, with revenue increasing by 122.4% year-over-year. In the same quarter the previous year, the company reported EPS of $0.25. Analysts forecast that NVIDIA is set to post EPS of 2.65 for the current year.

Dividend and Stock Repurchase Updates

NVIDIA also recently announced a quarterly dividend, which was paid on October 3rd. Those who were on record as of September 12th received a dividend of $0.01 per share, with an annualized dividend yield of 0.03%—resulting in a total of $0.04. The company's payout ratio stands at 1.88%. Additionally, on August 28th, NVIDIA's board approved a stock repurchase plan that enables the company to buy back up to $50.00 billion in shares, representing up to 1.6% of its stock through open market purchases. This type of repurchase plan typically indicates that the company's board believes the stock is undervalued.

About NVIDIA

NVIDIA Corporation specializes in providing graphics and computing solutions, including networking products, both domestically and globally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service, and solutions for gaming platforms. They also provide Quadro/NVIDIA RTX GPUs for enterprise workstation graphics, virtual GPU (vGPU) software for cloud-based visual and virtual computing, and automotive platforms for infotainment systems, alongside software for building and operating metaverse and 3D internet applications.

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