NVIDIA Corp (NVDA) Stock’s 1.98% Increase This Year: What’s the Story?

BofA Securities has recently reiterated NVIDIA Corp (NVDA) stock to Buy rating, as announced on October 18, 2024, according to Finviz. Earlier, on October 11, 2024, Goldman had reiterated the stock to Buy, setting a price target of $150 for NVDA stock. William Blair also initiated Outperform rating. Additionally, Needham reiterated Buy rating on August 29, 2024, with a target price of $145. Goldman analysts, in their report published on August 19, 2024, also reiterated Buy rating and set a price target of $135 for NVIDIA Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

NVIDIA Corp (NVDA) Stock Trading Recap

On Friday, NVIDIA Corp (NVDA) stock saw a modest uptick, ending the day at $141.54 which represents a slight increase of $1.13 or 0.80% from the prior close of $140.41. The stock opened at $140.93 and touched a low of $140.8 during the day, reaching a high of $144.13. The volume of shares traded was 203.36 million falling short of the average volume of 322.81 million.

NVDA Stock Performance and Moving Averages

In recent trading, NVIDIA Corp (NVDA) stock price has shown some volatility, fluctuating 2.57% over the last five trades and 14.11% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 61.33%, and it has gained 26.84% in the previous three months. Currently, NVDA is trading at 6.54%, 13.82%, and 37.86% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, NVDA, a Technology sector stock, is trading -1.99% below its 52-week high but remains 260.80% above its 52-week low. The Average True Range (ATR) (14 days) of 4.69 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

NVIDIA Corp’s Profitability and Valuation Ratios

NVIDIA Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 61.87% and a profit margin of 55.04%, with a gross margin of 61.33%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, NVIDIA Corp’s market capitalization stands at $3471.98 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 66.45, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 34.8. Additionally, the Price-to-Sales Ratio is 36.05, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 59.78, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 3.98% of NVIDIA Corp (NVDA)’s shares, while financial institutions hold 65.54%.

Notable insider trades include STEVENS MARK A, Director at NVIDIA Corp (NVDA), who sold 155000 shares on Oct 09 ’24, at $132.27 each, totaling $20.50 million. On Oct 03 ’24, STEVENS MARK A, Director, sold 125000 shares for $122.61 each, amounting to $15.33 million. Additionally, on Sep 27 ’24, STEVENS MARK A sold 40000 shares at $121.01 each, generating $4.84 million.