NVIDIA Corporation (NASDAQ: NVDA) stock jumped 7.59% on Monday to $191.93 against a previous-day closing price of $178.39. With 65.34 million shares changed hands, the volume of the stock remained heavier than its average volume of 47.0 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $192.45 whereas the lowest price it dropped to was $178.18. The 52-week range on NVDA shows that it touched its highest point at $289.46 and its lowest point at $108.13 during that stretch. It currently has a 1-year price target of $195.72. With its current market cap of 443.72 billion, NVDA has annualized dividend of $0.16 while the current yield stands at 0.08%. Beta for the stock currently stands at 1.73.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NVDA was up-trending over the past week, with a rise of 13.57%, but this was up by 19.32% over a month. Three-month performance surged to 57.40% while six-month performance rose 10.82%. The stock lost -20.53% in the past year, while it has gained 31.33% so far this year. A look at the trailing 12-month EPS for NVDA yields 2.35 with Next year EPS estimates of 4.33. For the next quarter, that number is 0.81. This implies an EPS growth rate of 123.10% for this year and 32.45% for next year. EPS is expected to grow by 21.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 43.10%.
Float and Shares Shorts:
At present, 2.48 billion NVDA shares are outstanding with a float of 2.36 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 32.87 million, which was 1.32% higher than short shares on Sep 14, 2022. In addition to Mr. Jen-Hsun Huang as the firm’s Co-Founder, CEO, Pres & Director, Ms. Colette M. Kress serves as its Exec. VP & CFO.
Through their ownership of 65.16% of NVDA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 4.10% of NVDA, in contrast to 39.57% held by mutual funds. Shares owned by individuals account for 26.47%. As the largest shareholder in NVDA with 7.87% of the stake, The Vanguard Group, Inc. holds 193,529,915 shares worth 193,529,915. A second-largest stockholder of NVDA, Fidelity Management & Research Co, holds 130,649,763 shares, controlling over 5.31% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in NVDA, holding 115,278,181 shares or 4.69% stake. With a 2.89% stake in NVDA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 71,076,358 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.34% of NVDA stock, is the second-largest Mutual Fund holder. It holds 57,557,082 shares valued at 8.41 billion. Invesco QQQ Trust holds 1.33% of the stake in NVDA, owning 32,744,601 shares worth 4.79 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NVDA since 43 analysts follow the stock currently. There are 24 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NVDA analysts setting a high price target of $325.00 and a low target of $110.00, the average target price over the next 12 months is $200.33. Based on these targets, NVDA could surge 69.33% to reach the target high and fall by -42.69% to reach the target low. Reaching the average price target will result in a growth of 4.38% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NVDA will report FY 2023 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $3.34 being high and $3.19 being low. For NVDA, this leads to a yearly average estimate of $3.27. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NVIDIA Corporation surprised analysts by -$0.13 when it reported $0.58 EPS against a consensus estimate of $0.71. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.86 and the low estimate is $0.77. The average estimate for the next quarter is thus $0.81.
Dividends & Yield:
In terms of dividends, NVDA has a current ratio of $0.16, which is $0.16 over the trailing 12-months, while a dividend of $0.16 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and NVDA currently yields $0.08. In the past year, NVDA’s dividend yield has been $0.08, but when looking at the stock over the past five years, its yield has been $0.2. Accordingly, NVDA has a current buyback yield of $0.0. This was $0.0 for the TTM, and it was $1.0 for the past five years.
Summary of Insider Activity:
Insiders traded NVDA stock several times over the past three months with 5 Buys and 14 Sells. In these transactions, 1,854,805 shares were bought while 1,538,802 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 4,023,104 while 2,944,661 shares were sold.