NVIDIA (NASDAQ:NVDA) Board of Directors Declares Stock Buyback Program

NVIDIA (NASDAQ:NVDA) announced that its Board of Directors has authorized a share repurchase plan on Wednesday, August 28th, RTT News reports. The company plans to repurchase $50.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

NVIDIA Stock Down 2.1 %

Shares of NASDAQ:NVDA traded down $2.69 during midday trading on Wednesday, hitting $125.61. 438,283,158 shares of the company’s stock were exchanged, compared to its average volume of 444,565,625. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.53 and a quick ratio of 3.14. The stock has a 50 day moving average price of $120.71 and a 200-day moving average price of $102.54. The company has a market cap of $3.09 trillion, a PE ratio of 73.46, a price-to-earnings-growth ratio of 1.15 and a beta of 1.68. NVIDIA has a 12 month low of $39.23 and a 12 month high of $140.76.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, August 28th. The computer hardware maker reported $0.68 EPS for the quarter, topping the consensus estimate of $0.59 by $0.09. The company had revenue of $30.04 billion during the quarter, compared to the consensus estimate of $28.74 billion. NVIDIA had a net margin of 53.40% and a return on equity of 110.60%. The firm’s revenue for the quarter was up 122.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.25 earnings per share. On average, sell-side analysts anticipate that NVIDIA will post 2.53 EPS for the current fiscal year.

NVIDIA Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 3rd. Stockholders of record on Thursday, September 12th will be given a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.03%. NVIDIA’s payout ratio is presently 2.34%.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. JPMorgan Chase & Co. raised their target price on shares of NVIDIA from $85.00 to $115.00 and gave the company an “overweight” rating in a research report on Thursday, May 23rd. Oppenheimer restated an “outperform” rating and issued a $110.00 target price on shares of NVIDIA in a research report on Thursday, May 23rd. Raymond James raised their target price on shares of NVIDIA from $110.00 to $120.00 and gave the company a “strong-buy” rating in a research report on Thursday, May 23rd. Argus lifted their price target on shares of NVIDIA from $110.00 to $150.00 and gave the stock a “buy” rating in a report on Tuesday, June 11th. Finally, Truist Financial lifted their price target on shares of NVIDIA from $140.00 to $145.00 and gave the stock a “buy” rating in a report on Tuesday. Five investment analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $135.24.

Insider Buying and Selling

In related news, CEO Jen Hsun Huang sold 120,000 shares of the business’s stock in a transaction dated Friday, August 9th. The shares were sold at an average price of $104.83, for a total transaction of $12,579,600.00. Following the transaction, the chief executive officer now directly owns 76,614,995 shares in the company, valued at $8,031,549,925.85. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In related news, CEO Jen Hsun Huang sold 120,000 shares of the business’s stock in a transaction dated Friday, August 9th. The shares were sold at an average price of $104.83, for a total transaction of $12,579,600.00. Following the transaction, the chief executive officer now directly owns 76,614,995 shares in the company, valued at $8,031,549,925.85. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Colette Kress sold 100,000 shares of the business’s stock in a transaction dated Friday, June 21st. The stock was sold at an average price of $126.99, for a total transaction of $12,699,000.00. Following the transaction, the chief financial officer now owns 5,288,862 shares in the company, valued at $671,632,585.38. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 4,120,723 shares of company stock worth $610,405,941. 4.23% of the stock is owned by insiders.

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.