NVIDIA Corporation (NASDAQ:NVDA – Get Free Report)’s share price was down 3.2% on Wednesday. The company traded as low as $199.68 and last traded at $200.13. Approximately 147,431,292 shares changed hands during trading, a decline of 1% from the average daily volume of 148,282,234 shares. The stock had previously closed at $206.69.
NVIDIA News Roundup
Here are the key news stories impacting NVIDIA this week:
- Positive Sentiment: NVIDIA’s OpenShell integration with ModelOp adds its technology to an enterprise AI governance platform, potentially broadening adoption of its software ecosystem. Article: ModelOp Unveils Industry-First Full-Stack AI Policy Enforcement With NVIDIA OpenShell
- Positive Sentiment: Aptiv and NVIDIA are expanding work on production-ready automated-driving systems, offering a potential growth avenue beyond data-center chips. Article: Aptiv Deepens Its Push Into Production Ready Automated Driving
- Neutral Sentiment: Reports say CEO Jensen Huang defended NVIDIA following a spy-investigation report. The article frames the pullback as a buying opportunity, but provides no clear indication that the report will affect the company’s business. Article: Jensen Huang Defends Nvidia After Spy Investigation Report
- Negative Sentiment: Investors are scrutinizing a reported $108 billion revenue guide as the next high bar for results. Elevated expectations may leave less room for disappointment. Article: Nvidia Stocks Decline as $108 Billion Guide Sets the Next Revenue Hurdle
- Negative Sentiment: Reports that NVIDIA is asking cloud partners to generate at least 51% of sales from non-Chinese customers could constrain some providers and complicate sales tied to China amid U.S. export rules. Article: Nvidia Is Telling Cloud Clients to Sell at Least 51% to Non-Chinese Customers
- Negative Sentiment: Democratic midterm victories prompted concerns that data-center construction could slow or become more expensive, contributing to weakness across semiconductor stocks. An analyst downgrade and a Melius Research price-target cut added pressure. Article: Why Is Nvidia Stock Falling While Broader Markets Rally?
Analyst Ratings Changes
NVDA has been the subject of a number of research reports. Benchmark reissued a “buy” rating and set a $335.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a report on Friday, October 9th. Cantor Fitzgerald reiterated an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a research report on Thursday, October 1st. DZ Bank reissued a “buy” rating on shares of NVIDIA in a report on Wednesday, August 26th. Finally, HSBC boosted their price target on shares of NVIDIA from $360.00 to $365.00 in a research report on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $318.85.
View Our Latest Stock Report on NVDA
NVIDIA Price Performance
The firm has a market capitalization of $4.83 trillion, a P/E ratio of 25.31, a price-to-earnings-growth ratio of 1.55 and a beta of 2.21. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The firm has a 50 day moving average price of $221.45 and a 200-day moving average price of $204.44.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the previous year, the company posted $1.05 EPS. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. On average, analysts expect that NVIDIA Corporation will post 9.30 earnings per share for the current year.
NVIDIA Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s payout ratio is 12.64%.
NVIDIA declared that its board has authorized a share buyback plan on Monday, September 28th that permits the company to buy back $150 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its stock is undervalued.
Insider Activity
In related news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction dated 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 of the company’s stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the company’s 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 transaction, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. The trade was 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 quarter, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is currently owned by company insiders.
Institutional Trading of NVIDIA
Institutional investors have recently added to or reduced their stakes in the company. Texas Bank & Trust Co raised its position in NVIDIA by 5.3% during the 3rd quarter. Texas Bank & Trust Co now owns 34,854 shares of the computer hardware maker’s stock valued at $7,960,000 after purchasing an additional 1,752 shares in the last quarter. Gryphon Financial Partners LLC grew its position in shares of NVIDIA by 2.6% during the 3rd quarter. Gryphon Financial Partners LLC now owns 173,692 shares of the computer hardware maker’s stock worth $39,668,000 after buying an additional 4,354 shares in the last quarter. Fairscale Capital LLC grew its position in shares of NVIDIA by 0.8% during the 3rd quarter. Fairscale Capital LLC now owns 59,699 shares of the computer hardware maker’s stock worth $13,634,000 after buying an additional 475 shares in the last quarter. Vestor Capital LLC grew its position in shares of NVIDIA by 1,102.0% during the 3rd quarter. Vestor Capital LLC now owns 8,498 shares of the computer hardware maker’s stock worth $1,941,000 after buying an additional 7,791 shares in the last quarter. Finally, Leuthold Group LLC increased its stake in shares of NVIDIA by 4.8% during the third quarter. Leuthold Group LLC now owns 71,847 shares of the computer hardware maker’s stock valued at $16,408,000 after buying an additional 3,279 shares during the period. Institutional investors own 65.27% of the company’s stock.
About NVIDIA
NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.
The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.
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