LifeSteps Financial Inc. Sells 7,858 Shares of NVIDIA Corporation $NVDA

Key Points

• LifeSteps Financial cut its NVIDIA stake by 15.5% in the third quarter, selling 7,858 shares and ending the period with 42,989 shares worth about $9.8 million. NVIDIA remained 5% of the fund’s portfolio and its third-largest holding.
• Institutional investors collectively owned 65.27% of NVIDIA, with several funds adding shares during the quarter, including Charles Schwab Trust Co., which increased its position substantially.
• NVIDIA reported quarterly revenue growth of 105.9% year over year and beat earnings estimates; however, investors face near-term uncertainty around AI infrastructure spending and upcoming results.

LifeSteps Financial Inc. reduced its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 15.5% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 42,989 shares of the computer hardware maker's stock after selling 7,858 shares during the period. NVIDIA comprises approximately 5.0% of LifeSteps Financial Inc.'s holdings, making the stock its 3rd largest position. LifeSteps Financial Inc.'s holdings in NVIDIA were worth $9,818,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in NVDA. Charles Schwab Trust Co raised its position in NVIDIA by 4,720.5% in the 3rd quarter. Charles Schwab Trust Co now owns 135,793 shares of the computer hardware maker's stock worth $31,012,000 after buying an additional 132,976 shares during the last quarter. Gunderson Capital Management LLC purchased a new stake in shares of NVIDIA during the 3rd quarter valued at about $19,160,000. Formuepleje A S grew its stake in shares of NVIDIA by 10.3% in the third quarter. Formuepleje A S now owns 508,536 shares of the computer hardware maker's stock worth $116,139,000 after acquiring an additional 47,598 shares during the period. Turtle Creek Wealth Advisors LLC grew its stake in shares of NVIDIA by 5.2% in the third quarter. Turtle Creek Wealth Advisors LLC now owns 335,027 shares of the computer hardware maker's stock worth $76,514,000 after acquiring an additional 16,549 shares during the period. Finally, WealthPlan Investment Management LLC raised its holdings in shares of NVIDIA by 4.2% during the third quarter. WealthPlan Investment Management LLC now owns 273,587 shares of the computer hardware maker's stock valued at $62,482,000 after purchasing an additional 11,103 shares during the last quarter. 65.27% of the stock is owned by institutional investors.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Some investors see the decline as a buying opportunity, citing NVIDIA’s strong AI-chip position and profitability. ARK Invest also reportedly added $45.9 million of NVDA shares during the sell-off. Nvidia Stock Rises on Dip-Buying: 3 Reasons to Be Optimistic
• Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate more revenue per gigawatt of data-center capacity than the current platform, supporting the case for continued growth. Jensen Huang Says Nvidia's Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
• Neutral Sentiment: NVIDIA’s upcoming Nov. 17 results are a key near-term catalyst: investors will look for evidence that demand and guidance can ease fears about AI spending and justify the stock’s recovery. Nvidia Investors Need to Be Paying Attention on Nov. 17
• Negative Sentiment: The rebound follows a steep sell-off that wiped roughly $450 billion from NVIDIA’s market value. Investors are worried that a Democratic-led Congress, data-center permitting or regulatory hurdles, high capital costs, and uncertain returns could delay infrastructure projects and weaken future chip demand. AI stocks hammered by midterm shock as data center buildout becomes a 'war of attrition'
• Negative Sentiment: Reports that NVIDIA may be taking on greater exposure to financially strained “neocloud” customers raise concern that it could face risks beyond selling chips if those providers struggle to fund data centers. As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help

NVIDIA Price Performance

Shares of NASDAQ:NVDA opened at $186.64 on Monday. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $4.50 trillion, a PE ratio of 23.60, a price-to-earnings-growth ratio of 1.43 and a beta of 2.21. The firm's 50 day moving average price is $219.80 and its 200-day moving average price is $204.53. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the previous year, the business posted $1.05 earnings per share. The firm's quarterly revenue was up 105.9% compared to the same quarter last year. Equities research analysts expect that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA declared that its board has approved a stock repurchase program on Monday, September 28th that authorizes the company to buy back $150 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Share repurchase programs are typically a sign that the company's board believes its shares are undervalued.

NVIDIA Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders 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 dividend yield of 0.5%. NVIDIA's payout ratio is presently 12.64%.

Insider Activity

In other news, EVP Timothy Teter sold 30,460 shares of the company's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This represents a 1.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the firm's 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 transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last 90 days. Company insiders own 3.94% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on NVDA shares. Raymond James Financial set a $515.00 price objective on shares of NVIDIA and gave the company a "strong-buy" rating in a research report on Thursday, August 27th. Melius Research cut their target price on shares of NVIDIA from $420.00 to $315.00 and set a "buy" rating for the company in a research report on Monday, November 2nd. BNP Paribas Exane reiterated an "outperform" rating and set a $345.00 target price on shares of NVIDIA in a research note on Monday, October 5th. Wells Fargo & Company set a $210.00 price target on NVIDIA in a report on Friday, October 2nd. Finally, China Renaissance increased their price target on NVIDIA from $319.00 to $330.00 and gave the company a "buy" rating in a report on Monday, August 31st. Five analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $318.85.

NVIDIA Company Profile

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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