NVIDIA (NASDAQ:NVDA) Trading 1.8% Higher – Time to Buy?

NVIDIA Corporation (NASDAQ:NVDAGet Free Report) rose 1.8% during trading on Thursday . The company traded as high as $221.60 and last traded at $218.66. Approximately 164,166,658 shares changed hands during trading, a decline of 5% from the average daily volume of 172,166,328 shares. The stock had previously closed at $214.75.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

Wall Street Analyst Weigh In

NVDA has been the subject of several research analyst reports. Susquehanna reiterated a “positive” rating and issued a $275.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Tuesday, May 12th. BNP Paribas Exane lifted their price target on shares of NVIDIA from $270.00 to $285.00 and gave the company an “outperform” rating in a research note on Thursday, May 21st. UBS Group upped their price target on shares of NVIDIA from $275.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Barclays reissued an “overweight” rating on shares of NVIDIA in a research report on Thursday, May 21st. Finally, William Blair reaffirmed an “outperform” rating on shares of NVIDIA in a research report on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, NVIDIA presently has a consensus rating of “Buy” and a consensus price target of $305.67.

Check Out Our Latest Stock Report on NVIDIA

NVIDIA Stock 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 stock’s fifty day moving average is $203.37 and its two-hundred day moving average is $190.55. The firm has a market capitalization of $4.96 trillion, a price-to-earnings ratio of 31.41, a P/E/G ratio of 0.49 and a beta of 2.22.

NVIDIA (NASDAQ:NVDAGet Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.62 billion during the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business’s revenue was up 85.2% on a year-over-year basis. During the same period last year, the firm posted $0.81 earnings per share. On average, analysts predict that NVIDIA Corporation will post 8.61 earnings per share for the current year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is currently 15.31%.

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

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 500,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the transaction, the director directly owned 6,399,771 shares of the company’s stock, valued at approximately $1,406,861,658.93. This trade represents a 7.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Colette Kress sold 20,000 shares of NVIDIA stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $174.89, for a total transaction of $3,497,800.00. Following the completion of the sale, the chief financial officer owned 83,060 shares of the company’s stock, valued at approximately $14,526,363.40. The trade was a 19.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 1,922,461 shares of company stock worth $387,385,083. 3.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of NVDA. Brighton Jones LLC increased its holdings in NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock valued at $43,631,000 after buying an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG lifted its holdings in shares of NVIDIA by 1.0% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock worth $315,100,000 after acquiring an additional 22,929 shares during the period. Highview Capital Management LLC DE boosted its position in shares of NVIDIA by 6.7% during the 4th quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock worth $7,842,000 after acquiring an additional 3,653 shares in the last quarter. Hudson Value Partners LLC boosted its position in shares of NVIDIA by 30.7% during the 4th quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock worth $6,805,000 after acquiring an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. increased its stake in NVIDIA by 15.7% in the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after acquiring an additional 896 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.

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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