Do NVIDIA Corporation (NASDAQ: NVDA) Fit In A Value Investing Philosophy?


The Vanguard Group, Inc. recently announced the acquisition of new stake in NVIDIA Corporation (NASDAQ:NVDA). The institutional investor has increased its shareholding in the Technology company by 1.00% to 46.05 million shares with purchase of 0.46 million shares. This fresh investment now brings its stake to 7.49% valued currently at $19.55 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.64 million to 25.64 million shares. And T. Rowe Price Associates, Inc. (I. has lifted its position by 3.54% or 0.39 million shares – to 11.31 million shares.

With over 12.23 million NVIDIA Corporation (NVDA) shares trading Monday and a closing price of $508.81 on the day, the dollar volume was approximately $6.22 billion. The shares have shown a positive weekly performance of 3.11% and its price on 08/24/20 gained nearly 0.29%. Currently, there are 616.00M common shares owned by the public and among those 588.81M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 39 analysts who have offered their price forecasts for NVDA have a consensus price objective of $511.90. The analysts have set the share’s price value over the next 12 months at a high of $600.00 and a low of $300.00 should the stock experience a downside. Incidentally, analysts’ outlook for the NVIDIA Corporation stock is 2.00 for the next 12 months. The average price target is 1.01% above its last price level and an upside to the estimated low will see the stock lose -69.6% over that period. But an upside of 15.2% will see the stock hit the forecast high price target while mean target price for the stock is $529.00.

Insiders at the company have transacted a total of 326 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 38 of these insider trades were purchases, accounting for 552,015 shares. Insider sales of the common stock occurred on 288 occasions, with total insider shares sold totaling 1,402,964 shares.

The top 3 mutual fund holders in NVIDIA Corporation are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Fidelity Growth Company Fund. Vanguard Total Stock Market Index owns 16.61 million shares of the company’s stock, all valued at over $7.05 billion. The company sold 45444.0 shares recently to bring their total holdings to about 2.70% of the shares outstanding. Vanguard 500 Index Fund sold 76743.0 shares to see its total holdings shrink to 12.69 million shares valued at over $5.39 billion and representing 2.06% of the shares outstanding. Fidelity Growth Company Fund sold 82393.0 shares to bring its total holdings to over 10.31 million shares at a value of $4.38 billion. Fidelity Growth Company Fund now owns shares totaling to 1.68% of the shares outstanding.

Shares of NVIDIA Corporation (NASDAQ: NVDA) opened at $515.35, up $8.01 from a prior closing price of $507.34. However, the script later closed the day at $508.81, up 0.29%. The company’s stock has a 5-day price change of 3.11% and 45.91% over the past three months. NVDA shares are trading 116.24% year to date (YTD), with the 12-month market performance up to 213.23% higher. It has a 12-month low price of $159.00 and touched a high of $512.35 over the same period. Currently, 12.23 million shares have been traded, compared to an average intraday trading volume of 11.52 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 12.36%, 22.43%, and 68.75% respectively.

Institutional ownership of NVIDIA Corporation (NASDAQ: NVDA) shares accounts for 71.20% of the company’s 616.00M shares outstanding. Mutual fund holders own 4.49%, while other institutional holders and individual stakeholders account for 40.88% and 29.89% respectively.

It has a market capitalization of $300.51B and a beta (3y monthly) value of 1.47. The stock’s trailing 12-month PE ratio is 95.00, while the earnings-per-share (ttm) stands at $5.36. The company has a PEG of 5.45 and a Quick Ratio of 5.50 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.53% over the week and 3.20% over the month.

Analysts forecast that NVIDIA Corporation (NVDA) will achieve an EPS of $2.57 for the current quarter, $2.52 for the next quarter and $10.88 for 2022. The lowest estimate earnings-per-share for the quarter is $2.5 while analysts give the company a high EPS estimate of $2.72. Comparatively, EPS for the current quarter was $1.78 a year ago. Earnings per share for the fiscal year are expected to decrease by -25.10%, and 20.76% over the next financial year. EPS should shrink at an annualized rate of 17.44% over the next five years, compared to 32.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 39 brokerage firm advisors rate NVIDIA Corporation (NVDA) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 27 Wall Street analysts polled rate the stock as a buy, while 6 of the 39 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the NVDA, a number of firms have released research notes about the stock. Wells Fargo stated their Overweight rating for the stock in a research note on August 20, 2020, with the firm’s price target at $510-$535. Wedbush coverage for the NVIDIA Corporation (NVDA) stock in a research note released on August 20, 2020 offered a Outperform rating with a price target of $525. Truist was of a view on August 20, 2020 that the stock is Buy, while Susquehanna gave the stock Positive rating on August 20, 2020, issuing a price target of $540- $560. Rosenblatt on their part issued Buy rating on August 20, 2020.


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