ABC Arbitrage SA Makes New Investment in NVIDIA Corporation $NVDA

Key Points

• ABC Arbitrage SA has acquired a new position in NVIDIA Corporation, purchasing 11,435 shares valued at approximately $1.24 million in the first quarter.
• NVIDIA's recent earnings report showed an EPS of $1.05, surpassing estimates, with revenue totaling $46.74 billion, reflecting a 55.6% increase year-over-year.
• This stock has garnered significant interest from institutional investors, with 65.27% of shares now owned by hedge funds and institutions.

ABC Arbitrage SA acquired a new position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 11,435 shares of the computer hardware maker's stock, valued at approximately $1,239,000.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. FMR LLC increased its stake in shares of NVIDIA by 0.7% during the fourth quarter. FMR LLC now owns 1,004,376,608 shares of the computer hardware maker's stock worth $134,877,735,000 after purchasing an additional 6,665,252 shares in the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of NVIDIA by 0.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 411,328,951 shares of the computer hardware maker's stock worth $55,237,367,000 after purchasing an additional 3,721,331 shares in the last quarter. Northern Trust Corp increased its stake in shares of NVIDIA by 15.8% during the fourth quarter. Northern Trust Corp now owns 266,454,194 shares of the computer hardware maker's stock worth $35,782,134,000 after purchasing an additional 36,266,817 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of NVIDIA by 11.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 200,898,191 shares of the computer hardware maker's stock worth $26,978,618,000 after purchasing an additional 20,494,402 shares in the last quarter. Finally, Capital World Investors increased its stake in shares of NVIDIA by 6.5% during the fourth quarter. Capital World Investors now owns 140,921,614 shares of the computer hardware maker's stock worth $18,925,009,000 after purchasing an additional 8,555,411 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Stock Performance

NVIDIA stock opened at $171.66 on Friday. The firm has a 50 day simple moving average of $172.55 and a 200-day simple moving average of $140.01. NVIDIA Corporation has a 1-year low of $86.62 and a 1-year high of $184.48. The company has a debt-to-equity ratio of 0.08, a current ratio of 4.21 and a quick ratio of 3.60. The stock has a market cap of $4.17 trillion, a price-to-earnings ratio of 48.91, a price-to-earnings-growth ratio of 1.24 and a beta of 2.10.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 27th. The computer hardware maker reported $1.05 EPS for the quarter, topping the consensus estimate of $1.01 by $0.04. NVIDIA had a net margin of 52.41% and a return on equity of 101.74%. The firm had revenue of $46.74 billion for the quarter, compared to analyst estimates of $45.65 billion. During the same period in the prior year, the business posted $0.68 EPS. The business's revenue for the quarter was up 55.6% compared to the same quarter last year. NVIDIA has set its Q3 2026 guidance at EPS. On average, analysts expect that NVIDIA Corporation will post 2.77 EPS for the current year.

NVIDIA Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Stockholders of record on Thursday, September 11th will be issued a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. The ex-dividend date is Thursday, September 11th. NVIDIA's dividend payout ratio is currently 1.14%.

Insider Activity at NVIDIA

In other news, Director Mark A. Stevens sold 608,248 shares of the company's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $145.26, for a total value of $88,354,104.48. Following the transaction, the director directly owned 8,247,600 shares in the company, valued at approximately $1,198,046,376. This represents a 6.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Ajay K. Puri sold 168,195 shares of the company's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $152.64, for a total transaction of $25,673,284.80. Following the completion of the transaction, the executive vice president owned 4,018,547 shares in the company, valued at approximately $613,391,014.08. This represents a 4.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 4,872,755 shares of company stock valued at $764,283,330. 4.17% of the stock is owned by insiders.

Analyst Ratings Changes

A number of research firms have recently commented on NVDA. Truist Financial boosted their target price on shares of NVIDIA from $210.00 to $228.00 and gave the stock a "buy" rating in a research note on Thursday, August 28th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $200.00 price objective on shares of NVIDIA in a research note on Wednesday, August 27th. Rosenblatt Securities upped their price objective on shares of NVIDIA from $200.00 to $215.00 and gave the company a "buy" rating in a research note on Thursday, August 28th. UBS Group upped their price objective on shares of NVIDIA from $175.00 to $205.00 and gave the company a "buy" rating in a research note on Thursday, August 21st. Finally, Summit Insights raised shares of NVIDIA from a "hold" rating to a "buy" rating in a research note on Thursday, May 29th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, NVIDIA has an average rating of "Moderate Buy" and a consensus target price of $207.69.

NVIDIA Company Profile

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.

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