NVIDIA (NASDAQ:NVDA) Sets New 52-Week High on Strong Earnings

NVIDIA Co. (NASDAQ:NVDA - Get Free Report) hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $152.89 and last traded at $145.66, with a volume of 116073789 shares changing hands. The stock had previously closed at $145.89.

The computer hardware maker reported $0.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.12. The company had revenue of $35.08 billion for the quarter, compared to the consensus estimate of $33.15 billion. NVIDIA had a net margin of 55.04% and a return on equity of 113.50%. The firm's revenue was up 93.6% compared to the same quarter last year. During the same period last year, the company earned $0.38 earnings per share.

NVIDIA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Investors of record on Thursday, December 5th will be issued a dividend of $0.01 per share. The ex-dividend date is Thursday, December 5th. This represents a $0.04 dividend on an annualized basis and a yield of 0.03%. NVIDIA's payout ratio is 1.88%.

NVIDIA declared that its board has approved a share buyback program on Wednesday, August 28th that authorizes the company to buyback $50.00 billion in shares. This buyback authorization authorizes the computer hardware maker to purchase up to 1.6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities analysts have commented on NVDA shares. UBS Group lifted their price objective on shares of NVIDIA from $150.00 to $185.00 and gave the stock a "buy" rating in a research report on Monday, November 11th. Craig Hallum lifted their price objective on shares of NVIDIA from $125.00 to $165.00 and gave the stock a "buy" rating in a research report on Thursday, August 29th. Evercore ISI lifted their price objective on shares of NVIDIA from $189.00 to $190.00 and gave the stock an "outperform" rating in a research report on Thursday. Stifel Nicolaus boosted their target price on shares of NVIDIA from $165.00 to $180.00 and gave the company a "buy" rating in a research report on Tuesday. Finally, Bank of America reissued a "buy" rating and issued a $190.00 target price on shares of NVIDIA in a research report on Thursday. Five investment analysts have rated the stock with a hold rating, thirty-nine have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $160.82.

Insider Buying and Selling

In related news, Director Tench Coxe sold 1,000,000 shares of the stock in a transaction on Thursday, September 19th. The stock was sold at an average price of $119.27, for a total value of $119,270,000.00. Following the completion of the sale, the director now directly owns 5,852,480 shares of the company's stock, valued at approximately $698,025,289.60. This represents a 14.59 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Jen Hsun Huang sold 120,000 shares of the stock in a transaction on 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 of the company's stock, valued at $7,994,108,405.88. The trade was a 0.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,156,270 shares of company stock worth $254,784,327 in the last ninety days. Corporate insiders own 4.23% of the company's stock.

Institutional Investors Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. University of Texas Texas AM Investment Management Co. raised its stake in shares of NVIDIA by 897.5% during the 2nd quarter. University of Texas Texas AM Investment Management Co. now owns 119,110 shares of the computer hardware maker's stock valued at $14,715,000 after purchasing an additional 107,169 shares during the period. Truepoint Inc. boosted its position in shares of NVIDIA by 914.1% during the 2nd quarter. Truepoint Inc. now owns 12,990 shares of the computer hardware maker's stock valued at $1,605,000 after acquiring an additional 11,709 shares during the last quarter. Westwood Holdings Group Inc. grew its stake in NVIDIA by 683.9% in the 2nd quarter. Westwood Holdings Group Inc. now owns 238,829 shares of the computer hardware maker's stock worth $29,505,000 after buying an additional 208,362 shares in the last quarter. Legal & General Group Plc increased its stake in NVIDIA by 884.0% in the second quarter. Legal & General Group Plc now owns 213,127,959 shares of the computer hardware maker's stock valued at $26,329,751,000 after acquiring an additional 191,469,114 shares during the last quarter. Finally, Lombard Odier Asset Management Europe Ltd lifted its stake in NVIDIA by 1,106.0% during the second quarter. Lombard Odier Asset Management Europe Ltd now owns 532,285 shares of the computer hardware maker's stock worth $65,758,000 after purchasing an additional 488,148 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Price Performance

The stock has a market capitalization of $3.60 trillion, a PE ratio of 68.81, a PEG ratio of 1.54 and a beta of 1.66. The business has a fifty day moving average price of $133.55 and a 200-day moving average price of $121.72. The company has a current ratio of 4.27, a quick ratio of 3.79 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.