NVIDIA (NASDAQ:NVDA) Stock Price Up 2.5% - Here's Why

Key Points

• NVIDIA's stock price increased by 2.5% during mid-day trading, reaching up to $187.35 before closing at $186.44, with trading volume showing a slight increase from the average.
• Analysts have shown a bullish outlook for NVIDIA, with Citigroup and Wolfe Research increasing their target prices to $210.00 and $230.00, respectively, contributing to an overall average target price of $211.00.
• The company recently declared a quarterly dividend of $0.01 per share, representing a 0.0% dividend yield, with a low dividend payout ratio of 1.14%.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report)'s stock price rose 2.5% during mid-day trading on Tuesday . The stock traded as high as $187.35 and last traded at $186.44. Approximately 235,744,349 shares changed hands during trading, an increase of 1% from the average daily volume of 233,192,141 shares. The stock had previously closed at $181.85.

Analyst Upgrades and Downgrades

NVDA has been the subject of several research analyst reports. Citigroup reiterated a "buy" rating and set a $210.00 target price (up previously from $200.00) on shares of NVIDIA in a research report on Tuesday. Wolfe Research increased their price target on NVIDIA from $220.00 to $230.00 in a research note on Tuesday, September 23rd. Cantor Fitzgerald reissued an "overweight" rating and set a $240.00 price target on shares of NVIDIA in a research note on Thursday, August 28th. Needham & Company LLC reissued a "buy" rating and set a $200.00 price target on shares of NVIDIA in a research note on Thursday, August 28th. Finally, New Street Research increased their price target on NVIDIA from $200.00 to $235.00 and gave the company a "buy" rating in a research note on Friday, September 12th. Four research analysts have rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, NVIDIA presently has an average rating of "Moderate Buy" and an average target price of $211.00.

NVIDIA Price Performance

The firm has a market capitalization of $4.53 trillion, a P/E ratio of 53.12, a price-to-earnings-growth ratio of 1.29 and a beta of 2.10. The firm has a 50 day moving average price of $176.81 and a 200-day moving average price of $146.62. The company has a current ratio of 4.21, a quick ratio of 3.60 and a debt-to-equity ratio of 0.08.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 27th. The computer hardware maker reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.04. The business had revenue of $46.74 billion during the quarter, compared to analyst estimates of $45.65 billion. NVIDIA had a return on equity of 101.74% and a net margin of 52.41%.The company's revenue for the quarter was up 55.6% on a year-over-year basis. During the same period last year, the company earned $0.68 EPS. NVIDIA has set its Q3 2026 guidance at EPS. On average, analysts expect that NVIDIA Corporation will post 2.77 earnings per share for the current year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Thursday, September 11th will be paid a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. The ex-dividend date of this dividend is Thursday, September 11th. NVIDIA's dividend payout ratio (DPR) is currently 1.14%.

Insider Activity

In related news, CEO Jen Hsun Huang sold 75,000 shares of the firm's stock in a transaction that occurred on Monday, September 29th. The stock was sold at an average price of $182.34, for a total transaction of $13,675,500.00. Following the completion of the sale, the chief executive officer directly owned 71,233,203 shares of the company's stock, valued at approximately $12,988,662,235.02. This trade represents a 0.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Colette Kress sold 30,500 shares of the firm's stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $176.40, for a total value of $5,380,200.00. Following the sale, the chief financial officer directly owned 2,883,402 shares of the company's stock, valued at $508,632,112.80. This represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,148,818 shares of company stock worth $720,112,070 in the last three months. Corporate insiders own 4.17% of the company's stock.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently modified their holdings of NVDA. State Street Corp increased its holdings in NVIDIA by 1.0% during the 2nd quarter. State Street Corp now owns 978,208,862 shares of the computer hardware maker's stock worth $154,556,803,000 after purchasing an additional 9,554,857 shares during the period. Geode Capital Management LLC increased its holdings in NVIDIA by 1.5% during the 2nd quarter. Geode Capital Management LLC now owns 579,213,497 shares of the computer hardware maker's stock worth $91,150,170,000 after purchasing an additional 8,521,936 shares during the period. Kingstone Capital Partners Texas LLC increased its holdings in NVIDIA by 267,959.7% during the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 382,373,765 shares of the computer hardware maker's stock worth $64,976,521,000 after purchasing an additional 382,231,120 shares during the period. Norges Bank purchased a new position in NVIDIA during the 2nd quarter worth $51,386,863,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in NVIDIA by 2.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 206,794,926 shares of the computer hardware maker's stock worth $22,412,434,000 after purchasing an additional 5,896,735 shares during the period. 65.27% of the stock is owned by institutional investors.

About NVIDIA

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.

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