Harrell Investment Partners LLC Sells 4,444 Shares of NVIDIA Corporation $NVDA

Key Points

• Harrell Investment Partners reduced its NVIDIA stake by 3.3%, selling 4,444 shares in the third quarter. It still held 131,142 shares, valued at about $30 million, making NVIDIA its fourth-largest position.
• Institutional investors made mixed moves: several funds increased their holdings, while institutions collectively owned 65.27% of NVIDIA’s stock.
• NVIDIA reported strong results, with quarterly revenue up 105.9% year over year and earnings above estimates. However, reports of an investigation involving CEO Jensen Huang have raised concerns about reputational, legal, and regulatory risks.

Harrell Investment Partners LLC cut its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 3.3% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 131,142 shares of the computer hardware maker's stock after selling 4,444 shares during the quarter. NVIDIA accounts for 6.1% of Harrell Investment Partners LLC's holdings, making the stock its 4th biggest position. Harrell Investment Partners LLC's holdings in NVIDIA were worth $29,950,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Barlow Wealth Partners LLC raised its position in shares of NVIDIA by 0.8% in the 3rd quarter. Barlow Wealth Partners LLC now owns 227,473 shares of the computer hardware maker's stock valued at $54,421,000 after acquiring an additional 1,697 shares during the period. Blueline Advisors LLC grew its holdings in NVIDIA by 40.8% during the third quarter. Blueline Advisors LLC now owns 1,690 shares of the computer hardware maker's stock valued at $386,000 after purchasing an additional 490 shares during the period. Triasima Portfolio Management inc. increased its stake in NVIDIA by 14.6% in the third quarter. Triasima Portfolio Management inc. now owns 59,171 shares of the computer hardware maker's stock valued at $13,513,000 after purchasing an additional 7,522 shares in the last quarter. Financial Harvest LLC increased its stake in NVIDIA by 15.3% in the third quarter. Financial Harvest LLC now owns 12,696 shares of the computer hardware maker's stock valued at $2,900,000 after purchasing an additional 1,683 shares in the last quarter. Finally, Brindle & Bay Financial Advisors LLC raised its holdings in NVIDIA by 46.8% in the third quarter. Brindle & Bay Financial Advisors LLC now owns 3,382 shares of the computer hardware maker's stock worth $772,000 after purchasing an additional 1,078 shares during the period. 65.27% of the stock is owned by institutional investors.

NVIDIA News Roundup

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s underlying business remains strong: its latest reported quarter beat estimates, with revenue up 105.9% year over year. That growth may help support the stock if the controversy does not disrupt operations. Article: Jensen Huang Might Be the Biggest Wild Card for Nvidia Stock
• Positive Sentiment: The company also announced a South Korean AI-infrastructure collaboration with Rebellions and SK Telecom, extending use of NVIDIA’s NVLink platform. Article: NVIDIA, Rebellions and SK Telecom Announce Collaboration
• Neutral Sentiment: NVIDIA’s board has begun an independent investigation into reports that Huang was targeted by a foreign intelligence effort. The board said it has no reason to believe company secrets or national security were compromised; Huang says he is cooperating. The outcome remains uncertain. Article: Statement from NVIDIA Board of Directors
• Negative Sentiment: The investigation follows Huang’s admission of an affair with Alice Huang, a former executive at a company that buys NVIDIA chips, who U.S. intelligence reportedly suspects of links to Chinese intelligence. Investors are concerned about potential exposure of sensitive information, reputational damage, and complications for NVIDIA’s China business. Article: Nvidia Shares Slump on Spy Probe
• Negative Sentiment: Shareholder litigation and possible congressional scrutiny add legal and regulatory risks. Questions about Huang’s future also weigh on sentiment, as reports say NVIDIA has no clear public succession plan for its founder and long-serving CEO. Article: Nvidia’s CEO Turmoil Gives Democrats Fresh Ammunition for Oversight Article: Jensen Huang Affair Puts Nvidia’s Future at Risk

NVIDIA Stock Performance

Shares of NVIDIA stock opened at $178.67 on Tuesday. The firm has a market cap of $4.31 trillion, a price-to-earnings ratio of 22.59, a price-to-earnings-growth ratio of 1.54 and a beta of 2.21. The stock's 50-day moving average is $219.03 and its 200-day moving average is $204.50. NVIDIA Corporation has a one year low of $164.27 and a one year high of $243.37. 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 (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping 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%. NVIDIA's quarterly revenue was up 105.9% on a year-over-year basis. During the same period last year, the company earned $1.05 earnings per share. Equities analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA announced that its Board of Directors has approved a stock repurchase program on Monday, September 28th that allows the company to buy back $150 billion in shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Share buyback programs are usually an indication that the company's management believes its shares are undervalued.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders 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 dividend on an annualized basis and a yield of 0.6%. NVIDIA's dividend payout ratio is 12.64%.

Insider Transactions at NVIDIA

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 shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the transaction, the director directly owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 in the last ninety days. 3.94% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

NVDA has been the subject of several research analyst reports. Oppenheimer set a $315.00 price target on shares of NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. Benchmark reiterated a "buy" rating and set a $335.00 target price on shares of NVIDIA in a report on Thursday, August 27th. Citigroup reissued a "buy" rating and issued a $315.00 target price (up from $300.00) on shares of NVIDIA in a research note on Thursday, August 27th. Rothschild & Co Redburn increased their price target on NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Finally, Phillip Securities raised their price target on NVIDIA from $285.00 to $300.00 and gave the stock a "buy" rating in a research report on Monday, August 31st. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, NVIDIA currently has a consensus rating of "Buy" and an average price target of $317.57.

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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