Compass Capital Management Inc. Trims Stock Holdings in NVIDIA Corporation $NVDA

Key Points

• Compass Capital Management cut its NVIDIA stake by 7.5% in the second quarter, selling 23,436 shares and retaining 289,399 shares worth approximately $57.9 million. Institutional investors and hedge funds collectively own 65.27% of NVIDIA.
• NVIDIA insiders also reported sales totaling about $399.5 million over the past quarter, including transactions by CFO Colette Kress and EVP Timothy Teter, both executed under pre-arranged Rule 10b5-1 plans.
• Despite the selling, analyst sentiment remains positive, with a consensus “Buy” rating and a $324.14 price target. NVIDIA also reported better-than-expected quarterly earnings and revenue and authorized an additional $150 billion share repurchase program.

Compass Capital Management Inc. trimmed its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.5% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 289,399 shares of the computer hardware maker's stock after selling 23,436 shares during the quarter. NVIDIA accounts for 3.5% of Compass Capital Management Inc.'s portfolio, making the stock its 8th largest position. Compass Capital Management Inc.'s holdings in NVIDIA were worth $57,906,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. LightSquare Wealth Management LLC boosted its holdings in shares of NVIDIA by 0.3% in 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 buying an additional 49 shares during the period. Defender Capital LLC. increased its position in shares of NVIDIA by 0.7% in the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock valued at $1,507,000 after acquiring an additional 50 shares during the last quarter. Kooman & Associates increased 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 during the last quarter. Roof Eidam Maycock Peralta LLC raised its position in NVIDIA by 0.3% during the second quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker's stock worth $3,767,000 after acquiring an additional 50 shares in the last quarter. Finally, Persium Advisors LLC raised its holdings in shares of NVIDIA by 3.5% in the 2nd quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker's stock valued at $293,000 after purchasing an additional 50 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s decision to authorize an additional $150 billion in share repurchases, bringing total remaining authorization to approximately $235 billion through fiscal 2028, signals management’s confidence in future cash flow and could support earnings per share through a lower share count. Nvidia adds $150 billion to existing share repurchase plan
• Positive Sentiment: The company launched its Open Agent Safety Platform, including tools to control, monitor and isolate AI agents. Investors may see the initiative as a new software and inference-infrastructure opportunity rather than a constraint on AI spending. NVIDIA launches Open Agent Safety Platform
• Positive Sentiment: Demand indicators remain strong. SpaceX is reportedly purchasing more NVIDIA GPUs, Uniserve signed a five-year agreement involving NVIDIA B300 servers, and potential Chinese purchases of RTX PRO 5500 processors could expand the company’s addressable market if approved. SpaceX orders more Nvidia chips
• Neutral Sentiment: Analyst optimism persists, including Rosenblatt’s reiterated Buy rating and $390 price target. Commentary also highlights accelerating TSMC 2-nanometer capacity and continued hyperscaler capital spending as longer-term support for NVIDIA’s growth. TSMC prices out the competition
• Negative Sentiment: Near-term trading was pressured by rising bond yields and macroeconomic uncertainty, while NVIDIA’s shares consolidated below their recent high after Monday’s buyback-driven advance.
• Negative Sentiment: Investors are monitoring higher memory costs and supply-chain bottlenecks that could compress gross margins even as AI revenue grows. A Netlist complaint seeking to restrict imports of Micron memory used in NVIDIA-related AI systems adds a further legal and supply risk. Netlist seeks U.S. import ban on Micron chips
• Negative Sentiment: NVIDIA is also exploring insurance structures for chip-backed loans to smaller “neocloud” customers. The effort could broaden demand, but it highlights concerns about financing risk and the ability of emerging customers to support massive AI infrastructure investments. Nvidia turns to insurers to spread risk of AI build-out

Insider Buying and Selling at NVIDIA

In other news, CFO Colette Kress sold 34,918 shares of the 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 directly owned 765,103 shares in the company, valued at approximately $167,595,812.15. This represents a 4.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the firm's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% 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 have sold 1,766,118 shares of company stock worth $399,450,353 over the last quarter. Corporate insiders own 3.94% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently weighed in on NVDA. HSBC increased their price target on NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Wall Street Zen downgraded shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a report on Saturday. UBS Group set a $300.00 target price on shares of NVIDIA and gave the stock a "buy" rating in a report on Thursday, August 27th. President Capital boosted their price target on NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. Finally, Itau BBA Securities lowered their price objective on NVIDIA from $256.00 to $218.00 in a research note on Wednesday, June 24th. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $324.14.

NVIDIA Stock Down 0.7%

Shares of NASDAQ NVDA opened at $227.21 on Wednesday. The company has a market cap of $5.48 trillion, a price-to-earnings ratio of 28.72, a PEG ratio of 1.77 and a beta of 2.22. 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 Corporation has a 12 month low of $164.27 and a 12 month high of $236.54. The stock has a 50-day moving average price of $217.43 and a two-hundred day moving average price of $206.62.

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 for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm's quarterly revenue was up 105.9% compared to the same quarter last year. During the same period last year, the company posted $1.05 EPS. As a group, analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA announced that its Board of Directors has approved a share buyback plan on Monday, September 28th that permits the company to buyback $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA's dividend payout ratio is presently 12.64%.

NVIDIA 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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