BDF Gestion Sells 15,503 Shares of NVIDIA Corporation $NVDA

Key Points

• BDF Gestion cut its NVIDIA stake by 4.5%, selling 15,503 shares in the third quarter; it still held 325,856 shares worth about $74.4 million, making NVIDIA its largest portfolio position.
• NVIDIA reported quarterly EPS of $2.22 and revenue of $96.22 billion, beating analyst estimates; the board also authorized a share repurchase program of up to $150 billion.
• Analysts’ consensus rating was Moderate Buy, with an average price target of $277.89, though coverage included both upgrades and downgrades.

BDF Gestion lowered its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 4.5% in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 325,856 shares of the computer hardware maker's stock after selling 15,503 shares during the quarter. NVIDIA accounts for approximately 10.2% of BDF Gestion's portfolio, making the stock its largest position. BDF Gestion's holdings in NVIDIA were worth $74,419,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of NVDA. Retirement Wealth Solutions LLC increased its stake in NVIDIA by 1.2% in the second quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker's stock valued at $825,000 after purchasing an additional 47 shares in the last quarter. LightSquare Wealth Management LLC raised its holdings in shares of NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock valued at $3,741,000 after purchasing an additional 49 shares during the period. CWS Financial Advisors LLC boosted its position in shares of NVIDIA by 3.1% during the 3rd quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker's stock worth $377,000 after purchasing an additional 49 shares in the last quarter. Defender Capital LLC. boosted its position in shares of NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock worth $1,507,000 after purchasing an additional 50 shares in the last quarter. Finally, Kooman & Associates boosted its position in shares of NVIDIA by 0.6% during the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker's stock worth $1,694,000 after purchasing an additional 50 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

Key Stories Impacting NVIDIA

Investors following NVDA have been watching these stories:

• Positive Sentiment: Despite cutting its price target to $300, Rosenblatt Securities maintained a Buy rating; other coverage also points to continued investor optimism about NVIDIA’s long-term growth potential. Rosenblatt Securities rating
• Positive Sentiment: Investors will look to the November 17 earnings report for evidence that AI demand remains robust. Articles cite strong infrastructure spending and a $108 billion revenue outlook as potential supports for the business. NVIDIA earnings preview
• Negative Sentiment: Reports connecting the leadership scandal to scrutiny of possible chip diversions to China have raised risks of regulatory action and reputational damage. The allegations remain under investigation, while U.S. lawmakers are seeking testimony. Congressional scrutiny

Analyst Upgrades and Downgrades

Several brokerages have recently commented on NVDA. Evercore downgraded NVIDIA from an "outperform" rating to a "positive" rating and set a $186.00 target price for the company. in a research note on Wednesday. President Capital upped their price target on NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. UBS Group reiterated a "buy" rating on shares of NVIDIA in a report on Friday, October 9th. Piper Sandler began coverage on NVIDIA in a research note on Wednesday, September 9th. They issued an "overweight" rating and a $300.00 price objective for the company. Finally, Jefferies Financial Group started coverage on NVIDIA in a research note on Wednesday. They issued a "hold" rating for the company. Five research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $277.89.

NVIDIA Trading Down 2.0%

NVDA opened at $162.85 on Friday. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA Corporation has a fifty-two week low of $148.80 and a fifty-two week high of $243.37. The firm has a market capitalization of $3.92 trillion, a PE ratio of 20.59, a P/E/G ratio of 1.28 and a beta of 2.21. The company's 50-day moving average is $214.64 and its 200 day moving average is $204.12.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company's quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.05 EPS. As a group, research analysts predict that NVIDIA Corporation will post 9.29 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. NVIDIA's dividend payout ratio is 12.64%.

NVIDIA announced that its board has initiated a stock buyback program on Monday, September 28th that permits the company to repurchase $150 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its shares are undervalued.

Insider Activity

In other news, Director Mark Stevens sold 622,239 shares of the firm's stock in a transaction that occurred 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 transaction, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 over the last 90 days. 3.94% of the stock is currently owned by corporate insiders.

About NVIDIA

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications. NVIDIA's offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.

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