NVIDIA (NASDAQ:NVDA) Reaches New 12-Month High on Earnings Beat

NVIDIA Co. (NASDAQ:NVDA)’s share price reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $152.89 and last traded at $145.66, with a volume of 116073789 shares traded. The stock had previously closed at $145.89.

The computer hardware maker reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.69 by $0.12. The firm had revenue of $35.08 billion for the quarter, compared to analyst estimates of $33.15 billion. NVIDIA had a net margin of 55.04% and a return on equity of 113.50%. The business’s quarterly revenue was up 93.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.38 earnings per share.

NVIDIA Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 27th. Shareholders of record on Thursday, December 5th will be given a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 0.03%. NVIDIA’s dividend payout ratio (DPR) is 1.88%.

NVIDIA declared that its Board of Directors has approved a share repurchase 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 purchase up to 1.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

NVDA has been the topic of a number of research reports. JPMorgan Chase & Co. increased their price objective on shares of NVIDIA from $155.00 to $170.00 and gave the company an “overweight” rating in a research note on Thursday. Raymond James upped their price target on shares of NVIDIA from $140.00 to $170.00 and gave the stock a “strong-buy” rating in a research report on Thursday, November 14th. Robert W. Baird lifted their price target on shares of NVIDIA from $150.00 to $190.00 and gave the stock an “outperform” rating in a research note on Thursday. Stifel Nicolaus increased their price target on NVIDIA from $165.00 to $180.00 and gave the company a “buy” rating in a report on Tuesday. Finally, Craig Hallum raised their price objective on NVIDIA from $125.00 to $165.00 and gave the company a “buy” rating in a research note on Thursday, August 29th. Five equities research analysts have rated the stock with a hold rating, thirty-nine have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $159.15.

Insider Transactions at NVIDIA

In other news, Director Tench Coxe sold 1,000,000 shares of NVIDIA stock in a transaction that occurred on Thursday, September 19th. The shares were sold at an average price of $119.27, for a total value of $119,270,000.00. Following the sale, the director now directly owns 5,852,480 shares in the company, valued at $698,025,289.60. This trade represents a 14.59 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jen Hsun Huang sold 120,000 shares of NVIDIA stock in a transaction dated Monday, September 9th. The shares were sold at an average price of $105.33, for a total value of $12,639,600.00. Following the completion of the sale, the chief executive officer now directly owns 75,895,836 shares in the company, valued at approximately $7,994,108,405.88. This represents a 0.16 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,156,270 shares of company stock valued at $254,784,327. Corporate insiders own 4.23% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Morse Asset Management Inc lifted its holdings in shares of NVIDIA by 0.7% during the 3rd quarter. Morse Asset Management Inc now owns 202,054 shares of the computer hardware maker’s stock worth $24,537,000 after acquiring an additional 1,374 shares during the period. Diamant Asset Management Inc. purchased a new stake in shares of NVIDIA in the third quarter valued at about $247,000. Advisory Resource Group boosted its position in NVIDIA by 6.1% in the third quarter. Advisory Resource Group now owns 17,620 shares of the computer hardware maker’s stock worth $2,140,000 after purchasing an additional 1,016 shares during the last quarter. McIlrath & Eck LLC increased its stake in shares of NVIDIA by 18.7% during the 3rd quarter. McIlrath & Eck LLC now owns 20,365 shares of the computer hardware maker’s stock worth $2,473,000 after purchasing an additional 3,214 shares during the last quarter. Finally, Discipline Wealth Solutions LLC bought a new stake in NVIDIA in the 3rd quarter valued at about $792,000. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Trading Up 0.0 %

The firm has a 50-day simple moving average of $133.00 and a 200-day simple moving average of $121.54. The stock has a market cap of $3.58 trillion, a PE ratio of 67.47, a P/E/G ratio of 1.54 and a beta of 1.66. The company has a quick ratio of 3.79, a current ratio of 4.27 and a debt-to-equity ratio of 0.15.

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.