Marathon Capital Management Grows Holdings in NVIDIA Corporation $NVDA

Key Points

• Marathon Capital Management increased its NVIDIA stake by 91.5% in the second quarter, bringing its holdings to 11,415 shares valued at approximately $2.28 million. Institutional investors own 65.27% of NVIDIA’s outstanding stock.
• NVIDIA reported quarterly revenue of $96.22 billion and earnings of $2.22 per share, exceeding analyst expectations, with revenue rising 105.9% year over year. The company also authorized an $80 billion share-repurchase program and announced a quarterly dividend of $0.25 per share.
• Insiders have been substantial net sellers: executives and directors sold 2.59 million shares worth about $571 million over the past three months. Despite these sales and valuation concerns, analysts maintain a consensus “Buy” rating with an average price target of $324.34.

Marathon Capital Management grew its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 91.5% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 11,415 shares of the computer hardware maker's stock after acquiring an additional 5,455 shares during the period. Marathon Capital Management's holdings in NVIDIA were worth $2,284,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of NVDA. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the first quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC increased its position in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after buying an additional 67 shares in the last quarter. Phillip James Consulting Co. acquired a new position in shares of NVIDIA during the 1st quarter worth approximately $40,000. Finally, Inspire Investing LLC acquired a new position in shares of NVIDIA during the 4th quarter worth approximately $44,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Timothy S. Teter sold 30,000 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company's stock, valued at approximately $585,587,360.80. The trade was a 1.10% 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. Over the last three months, insiders sold 2,585,740 shares of company stock worth $571,015,527. Insiders own 3.94% of the company's stock.

NVIDIA Stock Down 0.0%

Shares of NVDA opened at $218.29 on Friday. The stock has a 50 day moving average price of $213.29 and a 200 day moving average price of $203.33. NVIDIA Corporation has a one year low of $164.27 and a one year high of $236.54. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The stock has a market capitalization of $5.26 trillion, a price-to-earnings ratio of 27.60, a PEG ratio of 1.71 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data 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. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the firm posted $1.05 EPS. The firm's revenue for the quarter was up 105.9% on a year-over-year basis. Equities research analysts forecast that NVIDIA Corporation will post 9.12 earnings per share for the current fiscal year.

NVIDIA announced that its board has approved a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, September 10th. NVIDIA's dividend payout ratio is 12.64%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on NVDA. Zacks Research cut shares of NVIDIA from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 21st. Stifel Nicolaus set a $315.00 price objective on shares of NVIDIA in a research report on Thursday, August 27th. Argus increased their price objective on shares of NVIDIA from $220.00 to $270.00 and gave the company a "buy" rating in a report on Thursday, May 21st. William Blair reaffirmed an "outperform" rating on shares of NVIDIA in a report on Tuesday, June 2nd. Finally, KGI Securities lifted their target price on shares of NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Three equities research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $324.34.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook
• Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue
• Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership
• Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate
• Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales

NVIDIA Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

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