NVIDIA (NASDAQ:NVDA) Approves Share Repurchase Plan

NVIDIA (NASDAQ:NVDA) declared that its board has authorized a stock repurchase plan on Wednesday, August 28th, RTT News reports. The company plans to buyback $50.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 1.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

NVIDIA Trading Down 6.4 %

Shares of NVDA opened at $117.59 on Friday. NVIDIA has a 1 year low of $39.23 and a 1 year high of $140.76. The company has a current ratio of 3.53, a quick ratio of 3.14 and a debt-to-equity ratio of 0.17. The stock has a 50 day simple moving average of $120.51 and a 200-day simple moving average of $102.70. The stock has a market cap of $2.89 trillion, a PE ratio of 68.77, a PEG ratio of 1.15 and a beta of 1.68.

NVIDIA (NASDAQ:NVDA) last released its quarterly earnings results on Wednesday, August 28th. The computer hardware maker reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.05. NVIDIA had a return on equity of 110.60% and a net margin of 53.40%. The firm had revenue of $30.04 billion during the quarter, compared to analysts’ expectations of $28.74 billion. During the same period last year, the firm posted $0.25 EPS. The business’s revenue was up 122.4% on a year-over-year basis. On average, sell-side analysts predict that NVIDIA will post 2.53 EPS for the current fiscal year.

NVIDIA Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 3rd. Shareholders of record on Thursday, September 12th will be given a $0.01 dividend. The ex-dividend date of this dividend is Thursday, September 12th. This represents a $0.04 dividend on an annualized basis and a yield of 0.03%. NVIDIA’s payout ratio is 2.34%.

Wall Street Analyst Weigh In

NVDA has been the topic of several recent analyst reports. Needham & Company LLC upped their price target on NVIDIA from $120.00 to $145.00 and gave the company a “buy” rating in a research report on Thursday. Evercore ISI upped their price target on NVIDIA from $145.00 to $150.00 and gave the company an “outperform” rating in a research report on Friday, August 23rd. Wells Fargo & Company upped their price target on NVIDIA from $155.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday. Wedbush reissued an “outperform” rating and set a $138.00 price target on shares of NVIDIA in a research report on Thursday. Finally, Westpark Capital upped their price target on NVIDIA from $127.50 to $165.00 and gave the company a “buy” rating in a research report on Thursday. Five equities research analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, NVIDIA currently has an average rating of “Moderate Buy” and a consensus price target of $142.10.

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CEO Jen Hsun Huang sold 120,000 shares of the stock in a transaction on Thursday, June 13th. The stock was sold at an average price of $128.74, for a total value of $15,448,800.00. Following the transaction, the chief executive officer now directly owns 81,358,830 shares in the company, valued at approximately $10,474,135,774.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, CEO Jen Hsun Huang sold 120,000 shares of the firm’s stock in a transaction on Thursday, June 13th. The stock was sold at an average price of $128.74, for a total value of $15,448,800.00. Following the transaction, the chief executive officer now directly owns 81,358,830 shares in the company, valued at approximately $10,474,135,774.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Tench Coxe sold 100,000 shares of the firm’s stock in a transaction on Friday, June 7th. The stock was sold at an average price of $1,194.57, for a total value of $119,457,000.00. Following the completion of the transaction, the director now owns 2,967,136 shares in the company, valued at $3,544,451,651.52. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 4,021,333 shares of company stock worth $599,173,182. Insiders own 4.23% of the company’s stock.

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.