NVIDIA (NASDAQ:NVDA) Stock Price Up 9.9% Following Earnings Beat

NVIDIA Co. (NASDAQ:NVDA)’s share price shot up 9.9% on Thursday following a stronger than expected earnings report. The stock traded as high as $1,047.27 and last traded at $1,043.64. 33,367,620 shares traded hands during trading, a decline of 32% from the average session volume of 49,387,723 shares. The stock had previously closed at $949.50.

The computer hardware maker reported $6.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.14 by $0.98. The firm had revenue of $26.04 billion for the quarter, compared to analyst estimates of $24.59 billion. NVIDIA had a return on equity of 122.24% and a net margin of 53.40%. The business’s revenue was up 262.1% on a year-over-year basis. During the same quarter last year, the company posted $0.88 earnings per share.

NVIDIA Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Tuesday, June 11th will be paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.04%. This is a positive change from NVIDIA’s previous quarterly dividend of $0.04. The ex-dividend date of this dividend is Tuesday, June 11th. NVIDIA’s payout ratio is 0.94%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on NVDA. Rosenblatt Securities reaffirmed a “buy” rating and issued a $1,400.00 price objective on shares of NVIDIA in a report on Monday, May 20th. Benchmark raised their target price on NVIDIA from $1,000.00 to $1,350.00 and gave the company a “buy” rating in a report on Thursday. Citigroup upped their price target on shares of NVIDIA from $1,030.00 to $1,260.00 and gave the stock a “buy” rating in a research note on Thursday. Sanford C. Bernstein upped their target price on shares of NVIDIA from $1,000.00 to $1,300.00 and gave the stock an “outperform” rating in a research report on Thursday. Finally, DA Davidson lifted their price target on shares of NVIDIA from $410.00 to $620.00 and gave the company a “neutral” rating in a research report on Thursday, February 22nd. Five equities research analysts have rated the stock with a hold rating, thirty-eight have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,123.49.

Insider Buying and Selling

In other NVIDIA news, insider Donald F. Robertson, Jr. sold 450 shares of the firm’s stock in a transaction dated Friday, March 22nd. The stock was sold at an average price of $911.62, for a total value of $410,229.00. Following the transaction, the insider now directly owns 49,815 shares of the company’s stock, valued at $45,412,350.30. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, insider Donald F. Robertson, Jr. sold 450 shares of NVIDIA stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $911.62, for a total transaction of $410,229.00. Following the sale, the insider now owns 49,815 shares in the company, valued at $45,412,350.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mark A. Stevens sold 12,000 shares of the company’s stock in a transaction on Monday, March 4th. The shares were sold at an average price of $853.54, for a total transaction of $10,242,480.00. Following the completion of the transaction, the director now owns 1,107,583 shares of the company’s stock, valued at $945,366,393.82. The disclosure for this sale can be found here. In the last three months, insiders sold 51,278 shares of company stock valued at $44,714,198. Company insiders own 4.23% of the company’s stock.

Institutional Trading of NVIDIA

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in shares of NVIDIA by 4.3% during the 1st quarter. Vanguard Group Inc. now owns 213,335,626 shares of the computer hardware maker’s stock valued at $192,761,538,000 after buying an additional 8,828,050 shares during the last quarter. Norges Bank acquired a new stake in NVIDIA in the fourth quarter valued at $14,606,369,000. Northern Trust Corp boosted its stake in NVIDIA by 3.6% during the 3rd quarter. Northern Trust Corp now owns 26,311,434 shares of the computer hardware maker’s stock valued at $11,445,211,000 after acquiring an additional 910,009 shares during the last quarter. International Assets Investment Management LLC grew its holdings in NVIDIA by 54,019.5% during the 4th quarter. International Assets Investment Management LLC now owns 16,866,869 shares of the computer hardware maker’s stock worth $8,352,811,000 after acquiring an additional 16,835,703 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in NVIDIA by 2.9% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 13,586,595 shares of the computer hardware maker’s stock worth $6,728,354,000 after acquiring an additional 388,851 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Price Performance

The company has a current ratio of 4.17, a quick ratio of 3.67 and a debt-to-equity ratio of 0.20. The company’s 50-day moving average price is $893.19 and its two-hundred day moving average price is $702.95. The company has a market cap of $2.62 trillion, a P/E ratio of 62.26, a P/E/G ratio of 1.32 and a beta of 1.75.

NVIDIA’s stock is going to split on the morning of Monday, June 10th. The 10-1 split was announced on Monday, June 10th. The newly created shares will be issued to shareholders after the market closes on Monday, June 10th.

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.