11,773,591 NVIDIA Corporation $NVDA Shares Sold by Wellington Management Group LLP

Key Points

• Wellington Management cut its NVIDIA stake by 8.8%, selling 11.8 million shares in the second quarter, but still held 122.1 million shares worth approximately $24.4 billion. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported a strong quarter, with revenue up 105.9% year over year to $96.22 billion and EPS of $2.22, beating analyst expectations. The company also authorized a $150 billion share-buyback program and declared a quarterly dividend of $0.25 per share.
• Wall Street remains broadly bullish, with 49 analysts rating the stock a Buy, five issuing Strong Buy ratings and an average price target of $321.89. However, NVIDIA shares were trading down 3.2% at $221.30, while competition, China market-share losses and insider selling remain concerns.

Wellington Management Group LLP reduced its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 8.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 122,084,399 shares of the computer hardware maker's stock after selling 11,773,591 shares during the period. NVIDIA accounts for 4.2% of Wellington Management Group LLP's portfolio, making the stock its largest position. Wellington Management Group LLP owned approximately 0.50% of NVIDIA worth $24,427,867,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also bought and sold shares of NVDA. J. Stern & Co. LLP lifted its stake in shares of NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker's stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the period. Jupiter Topco LLC bought a new stake in shares of NVIDIA during the second quarter valued at approximately $16,156,076,000. Amundi boosted its position in shares of NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares in the last quarter. SEB Asset Management AB bought a new stake in shares of NVIDIA during the first quarter valued at approximately $1,692,807,000. Finally, Employees Provident Fund Board purchased a new stake in NVIDIA in the fourth quarter worth $1,243,336,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.

NVIDIA Trading Down 3.2%

NVIDIA stock opened at $221.30 on Thursday. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $243.37. The company has a market capitalization of $5.33 trillion, a price-to-earnings ratio of 27.98, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22. The business's fifty day simple moving average is $223.43 and its two-hundred day simple moving average is $210.73. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the firm earned $1.05 EPS. NVIDIA's quarterly revenue was up 105.9% compared to the same quarter last year. As a group, equities analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is 12.64%.

NVIDIA declared that its board has initiated a stock buyback plan on Monday, September 28th that authorizes the company to buy back $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on NVDA. Jefferies Financial Group reiterated a "buy" rating on shares of NVIDIA in a report on Wednesday, August 26th. UBS Group reissued a "buy" rating on shares of NVIDIA in a research report on Friday, October 9th. Zacks Research upgraded shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a report on Monday, September 21st. Evercore set a $465.00 target price on shares of NVIDIA and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Finally, KeyCorp reaffirmed an "overweight" rating and issued a $330.00 target price on shares of NVIDIA in a research report on Monday, August 24th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, NVIDIA has an average rating of "Buy" and an average target price of $321.89.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research
• Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing
• Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight
• Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards
• Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip
• Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34%

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer owned 765,103 shares of the company's stock, valued at $167,595,812.15. This represents a 4.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 over the last 90 days. Corporate insiders own 3.94% of the company's stock.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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