NVIDIA’s (NVDA) Buy Rating Reaffirmed at Bank of America

Bank of America reiterated their buy rating on shares of NVIDIA (NASDAQ:NVDA) in a research note published on Thursday, Benzinga reports. They currently have a $165.00 price objective on the computer hardware maker’s stock.

A number of other brokerages have also commented on NVDA. HSBC boosted their price objective on shares of NVIDIA from $135.00 to $145.00 and gave the stock a buy rating in a research report on Wednesday, August 21st. TD Cowen lifted their target price on NVIDIA from $140.00 to $165.00 and gave the company a buy rating in a research report on Monday, July 15th. Tigress Financial upped their target price on NVIDIA from $98.50 to $170.00 and gave the stock a buy rating in a report on Tuesday, June 18th. DA Davidson reaffirmed a neutral rating and set a $90.00 price target on shares of NVIDIA in a research report on Thursday, August 29th. Finally, UBS Group increased their price objective on NVIDIA from $120.00 to $150.00 and gave the company a buy rating in a report on Monday, July 8th. Five equities research analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of Moderate Buy and a consensus target price of $142.10.

NVIDIA Price Performance

NVDA stock opened at $102.83 on Thursday. The stock has a market cap of $2.53 trillion, a PE ratio of 60.13, a price-to-earnings-growth ratio of 1.24 and a beta of 1.67. The stock has a 50-day moving average price of $118.61 and a two-hundred day moving average price of $104.62. NVIDIA has a 1 year low of $39.23 and a 1 year high of $140.76. The company has a current ratio of 4.27, a quick ratio of 3.14 and a debt-to-equity ratio of 0.15.

NVIDIA (NASDAQ:NVDA) last posted its quarterly earnings data on Wednesday, August 28th. The computer hardware maker reported $0.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.64 by $0.04. The business had revenue of $30.04 billion during the quarter, compared to the consensus estimate of $28.74 billion. NVIDIA had a return on equity of 113.50% and a net margin of 55.04%. NVIDIA’s quarterly revenue was up 122.4% on a year-over-year basis. During the same period last year, the company earned $0.25 earnings per share. Equities analysts forecast that NVIDIA will post 2.6 EPS for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a share buyback plan on Wednesday, August 28th that allows the company to repurchase $50.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to buy up to 1.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

NVIDIA Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 3rd. Investors of record on Thursday, September 12th will be paid a $0.01 dividend. The ex-dividend date is Thursday, September 12th. This represents a $0.04 dividend on an annualized basis and a yield of 0.04%. NVIDIA’s dividend payout ratio (DPR) is 2.34%.

Insider Activity

In related news, Director Mark A. Stevens sold 150,000 shares of the firm’s stock in a transaction dated Tuesday, June 11th. The stock was sold at an average price of $120.42, for a total value of $18,063,000.00. Following the sale, the director now directly owns 9,846,240 shares of the company’s stock, valued at $1,185,684,220.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other news, Director Mark A. Stevens sold 150,000 shares of the stock in a transaction dated Tuesday, June 11th. The shares were sold at an average price of $120.42, for a total value of $18,063,000.00. Following the completion of the transaction, the director now owns 9,846,240 shares of the company’s stock, valued at $1,185,684,220.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Ajay K. Puri sold 100,110 shares of NVIDIA stock in a transaction that occurred on Friday, July 12th. The shares were sold at an average price of $130.10, for a total transaction of $13,024,311.00. Following the sale, the executive vice president now directly owns 3,939,350 shares in the company, valued at $512,509,435. The disclosure for this sale can be found here. In the last quarter, insiders have sold 3,875,633 shares of company stock worth $472,782,722. Insiders own 4.23% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Several hedge funds have recently modified their holdings of the company. Lowe Wealth Advisors LLC bought a new stake in shares of NVIDIA during the second quarter worth about $25,000. DHJJ Financial Advisors Ltd. grew its holdings in NVIDIA by 1,900.0% during the 2nd quarter. DHJJ Financial Advisors Ltd. now owns 200 shares of the computer hardware maker’s stock worth $25,000 after acquiring an additional 190 shares during the last quarter. FPC Investment Advisory Inc. bought a new stake in NVIDIA during the 1st quarter worth approximately $26,000. CGC Financial Services LLC acquired a new position in NVIDIA in the 2nd quarter valued at approximately $26,000. Finally, Koesten Hirschmann & Crabtree INC. bought a new position in shares of NVIDIA during the first quarter valued at $27,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

NVIDIA Company Profile

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.