Goldman Sachs Maintains NVIDIA (NVDA) Buy Recommendation

Fintel reports that on July 10, 2023, Goldman Sachs maintained coverage of NVIDIA (NASDAQ:NVDA) with a Buy recommendation.

Analyst Price Forecast Suggests 13.62% Upside

As of July 6, 2023, the average one-year price target for NVIDIA is 482.91. The forecasts range from a low of 343.40 to a high of $745.50. The average price target represents an increase of 13.62% from its latest reported closing price of 425.03.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for NVIDIA is 30,001MM, an increase of 11.22%. The projected annual non-GAAP EPS is 4.40.

For more in-depth coverage of NVIDIA, view the free, crowd-sourced company research report on Finpedia.

NVIDIA Declares $0.04 Dividend

On May 24, 2023 the company declared a regular quarterly dividend of $0.04 per share ($0.16 annualized). Shareholders of record as of June 8, 2023 received the payment on June 30, 2023. Previously, the company paid $0.04 per share.

At the current share price of $425.03 / share, the stock’s dividend yield is 0.04%.

Looking back five years and taking a sample every week, the average dividend yield has been 0.18%, the lowest has been 0.02%, and the highest has been 0.50%. The standard deviation of yields is 0.13 (n=236).

The current dividend yield is 1.16 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.09. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 4905 funds or institutions reporting positions in NVIDIA. This is an increase of 392 owner(s) or 8.69% in the last quarter. Average portfolio weight of all funds dedicated to NVDA is 1.54%, an increase of 65.46%. Total shares owned by institutions decreased in the last three months by 0.04% to 1,788,081K shares. The put/call ratio of NVDA is 1.07, indicating a bearish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 72,343K shares representing 2.93% ownership of the company. In its prior filing, the firm reported owning 71,043K shares, representing an increase of 1.80%. The firm increased its portfolio allocation in NVDA by 78.72% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 57,402K shares representing 2.32% ownership of the company. In its prior filing, the firm reported owning 57,562K shares, representing a decrease of 0.28%. The firm increased its portfolio allocation in NVDA by 75.78% over the last quarter.

Price T Rowe Associates holds 56,464K shares representing 2.28% ownership of the company. In its prior filing, the firm reported owning 56,957K shares, representing a decrease of 0.87%. The firm increased its portfolio allocation in NVDA by 75.35% over the last quarter.

Geode Capital Management holds 46,056K shares representing 1.86% ownership of the company. In its prior filing, the firm reported owning 45,789K shares, representing an increase of 0.58%. The firm increased its portfolio allocation in NVDA by 76.82% over the last quarter.

Invesco Qqq Trust, Series 1 holds 32,476K shares representing 1.31% ownership of the company. In its prior filing, the firm reported owning 32,817K shares, representing a decrease of 1.05%. The firm increased its portfolio allocation in NVDA by 58.65% over the last quarter.

NVIDIA Background Information
(This description is provided by the company.)

NVIDIA is the pioneer of GPU-accelerated computing. The Company specializes in products and platforms for the large, growing markets of gaming, professional visualization, data center, and automotive. Its creations are loved by the most demanding computer users in the world – gamers, designers, and scientists. And its work is at the center of the most consequential mega-trends in technology.

Additional reading:

CFO Commentary on First Quarter Fiscal 2024 Results
NVIDIA Announces Financial Results for First Quarter Fiscal 2024
Variable Compensation Plan – Fiscal Year 2024
Bylaws of NVIDIA Corporation, Amended and Restated as of
Statement of Eligibility under the Trust Indenture Act of 1939, as amended, on Form T-1 of Computershare Trust Company, National Association, as successor trustee to Wells Fargo Bank, National Association, under the Indenture

This article originally appeared on Fintel

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