NVIDIA (NASDAQ:NVDA) Trading 4.9% Higher - Here's Why

Key Points

• NVIDIA shares increased by 4.9%, reaching a trading high of $179.12, with a notable decrease in trading volume of 60% from the average.
• Recent analyst changes include Summit Insights upgrading NVIDIA from "hold" to "buy" and price targets raised by several firms, with a consensus target of $207.42.
• NVIDIA reported earnings of $1.05 per share, exceeding expectations, with significant revenue growth of 55.6% year-over-year, reaching $46.74 billion this quarter.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) shot up 4.9% on Wednesday . The stock traded as high as $178.95 and last traded at $179.12. 94,158,849 shares were traded during trading, a decline of 60% from the average session volume of 236,334,609 shares. The stock had previously closed at $170.76.

Analysts Set New Price Targets

Several research firms recently weighed in on NVDA. KeyCorp reissued an "overweight" rating and set a $230.00 price objective (up previously from $215.00) on shares of NVIDIA in a report on Thursday, August 28th. Evercore ISI lifted their target price on NVIDIA from $190.00 to $214.00 and gave the stock an "outperform" rating in a report on Friday, August 22nd. Wolfe Research lifted their target price on NVIDIA from $220.00 to $230.00 and gave the stock an "outperform" rating in a report on Thursday, August 28th. Wall Street Zen raised NVIDIA from a "hold" rating to a "buy" rating in a report on Friday, September 5th. Finally, Rosenblatt Securities lifted their target price on NVIDIA from $200.00 to $215.00 and gave the stock a "buy" rating in a report on Thursday, August 28th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $207.83.

NVIDIA Price Performance

The company has a current ratio of 4.21, a quick ratio of 3.60 and a debt-to-equity ratio of 0.08. The business has a 50-day moving average of $174.42 and a 200 day moving average of $141.65. The firm has a market capitalization of $4.32 trillion, a P/E ratio of 50.66, a price-to-earnings-growth ratio of 1.29 and a beta of 2.10.

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

NVIDIA Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Stockholders 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 1.14%.

Insider Transactions at NVIDIA

In related news, CEO Jen Hsun Huang sold 75,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $177.57, for a total transaction of $13,317,750.00. Following the completion of the sale, the chief executive officer owned 72,248,366 shares of the company's stock, valued at $12,829,142,350.62. This trade represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Dawn E. Hudson sold 18,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $172.00, for a total transaction of $3,096,000.00. Following the completion of the transaction, the director directly owned 368,887 shares in the company, valued at approximately $63,448,564. The trade was a 4.65% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 3,907,755 shares of company stock valued at $633,253,430. 4.17% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NVIDIA

Hedge funds and other institutional investors have recently modified their holdings of the stock. Milestones Private Investment Advisors LLC bought a new position in NVIDIA during the second quarter valued at $1,162,000. NWF Advisory Services Inc. increased its position in NVIDIA by 87.6% during the 2nd quarter. NWF Advisory Services Inc. now owns 83,164 shares of the computer hardware maker's stock valued at $13,139,000 after purchasing an additional 38,836 shares during the period. Alternative Investment Advisors LLC. increased its position in NVIDIA by 1.5% during the 2nd quarter. Alternative Investment Advisors LLC. now owns 20,814 shares of the computer hardware maker's stock valued at $3,288,000 after purchasing an additional 312 shares during the period. Prospera Capital Management LLC boosted its holdings in shares of NVIDIA by 0.9% in the 2nd quarter. Prospera Capital Management LLC now owns 20,760 shares of the computer hardware maker's stock valued at $3,280,000 after buying an additional 189 shares in the last quarter. Finally, ZynergyRetirementPlanningLLC boosted its holdings in shares of NVIDIA by 8.2% in the 2nd quarter. ZynergyRetirementPlanningLLC now owns 1,375 shares of the computer hardware maker's stock valued at $217,000 after buying an additional 104 shares in the last quarter. Institutional investors 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.