NVIDIA Co. (NASDAQ:NVDA) to Issue $0.01 Quarterly Dividend

NVIDIA Co. (NASDAQ:NVDA) announced a quarterly dividend on Thursday, May 29th, Wall Street Journal reports. Investors of record on Wednesday, June 11th will be paid a dividend of 0.01 per share by the computer hardware maker on Thursday, July 3rd. This represents a $0.04 annualized dividend and a yield of 0.03%. The ex-dividend date of this dividend is Wednesday, June 11th.

NVIDIA has raised its dividend by an average of 33.4% per year over the last three years and has increased its dividend every year for the last 1 years. NVIDIA has a payout ratio of 0.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect NVIDIA to earn $3.98 per share next year, which means the company should continue to be able to cover its $0.04 annual dividend with an expected future payout ratio of 1.0%.

NVIDIA Price Performance

Shares of NVDA opened at $139.19 on Friday. The company has a debt-to-equity ratio of 0.13, a current ratio of 4.10 and a quick ratio of 3.64. NVIDIA has a 1-year low of $86.62 and a 1-year high of $195.95. The stock has a market cap of $3.40 trillion, a PE ratio of 54.78, a price-to-earnings-growth ratio of 1.76 and a beta of 2.11. The firm has a fifty day moving average price of $115.20 and a 200 day moving average price of $126.61.

NVIDIA (NASDAQ:NVDA) last posted its earnings results on Wednesday, May 28th. The computer hardware maker reported $0.81 earnings per share for the quarter, missing the consensus estimate of $0.87 by ($0.06). The firm had revenue of $44.06 billion during the quarter, compared to analysts’ expectations of $43.09 billion. NVIDIA had a net margin of 55.69% and a return on equity of 114.83%. The firm’s revenue for the quarter was up 69.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.61 earnings per share. As a group, sell-side analysts anticipate that NVIDIA will post 2.77 EPS for the current year.

Wall Street Analyst Weigh In

NVDA has been the subject of several research analyst reports. William Blair reissued an “outperform” rating on shares of NVIDIA in a report on Thursday, March 20th. Bank of America increased their price target on shares of NVIDIA from $150.00 to $160.00 and gave the stock a “buy” rating in a research note on Wednesday, May 14th. HSBC lowered shares of NVIDIA from a “buy” rating to a “hold” rating and set a $120.00 price objective on the stock. in a research note on Thursday, April 3rd. Piper Sandler reiterated an “overweight” rating and set a $180.00 target price (up previously from $150.00) on shares of NVIDIA in a research note on Wednesday. Finally, Barclays restated an “overweight” rating and issued a $170.00 price target (up previously from $155.00) on shares of NVIDIA in a research report on Thursday. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, thirty-six have issued a buy rating and three have issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $171.66.

Insider Buying and Selling at NVIDIA

In related news, CFO Colette Kress sold 66,660 shares of NVIDIA stock in a transaction dated Friday, March 21st. The stock was sold at an average price of $116.83, for a total transaction of $7,787,887.80. Following the completion of the sale, the chief financial officer now owns 3,085,765 shares in the company, valued at approximately $360,509,924.95. This trade represents a 2.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Aarti S. Shah sold 20,000 shares of the company’s stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $118.42, for a total transaction of $2,368,400.00. Following the completion of the transaction, the director now owns 53,208 shares in the company, valued at approximately $6,300,891.36. This trade represents a 27.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 147,147 shares of company stock valued at $17,133,207 over the last quarter. Corporate insiders own 4.17% of the company’s stock.

Institutional Investors Weigh In On NVIDIA

Hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC boosted its position in NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after acquiring an additional 35,815 shares during the last quarter. Financial Network Wealth Advisors LLC lifted its stake in shares of NVIDIA by 65.7% during the 1st quarter. Financial Network Wealth Advisors LLC now owns 3,254 shares of the computer hardware maker’s stock worth $353,000 after purchasing an additional 1,290 shares during the period. Widmann Financial Services Inc. boosted its holdings in shares of NVIDIA by 26.5% during the first quarter. Widmann Financial Services Inc. now owns 3,165 shares of the computer hardware maker’s stock worth $343,000 after purchasing an additional 663 shares during the last quarter. New Harbor Financial Group LLC grew its position in shares of NVIDIA by 61.8% in the first quarter. New Harbor Financial Group LLC now owns 3,135 shares of the computer hardware maker’s stock valued at $340,000 after purchasing an additional 1,197 shares during the period. Finally, Eagle Capital Management LLC acquired a new position in NVIDIA in the first quarter valued at $296,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

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.