Neumann Capital Management LLC Buys New Stake in NVIDIA Corporation $NVDA

Key Points

• Neumann Capital Management opened a $37 million NVIDIA position, buying 162,187 shares in the third quarter. The stock now represents 9.3% of its portfolio, its largest holding.
• Other major institutional investors also increased their NVIDIA stakes; institutional investors own 65.27% of the company’s shares.
• Analysts’ consensus rating is Buy, with an average price target of $318.75. NVIDIA also reported quarterly earnings and revenue above estimates and authorized up to $150 billion in share repurchases.

Neumann Capital Management LLC bought a new position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 162,187 shares of the computer hardware maker's stock, valued at approximately $37,040,000. NVIDIA accounts for 9.3% of Neumann Capital Management LLC's investment portfolio, making the stock its biggest position.

A number of other large investors have also recently added to or reduced their stakes in NVDA. State Street Corp boosted its holdings in shares of NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker's stock worth $202,047,568,000 after buying an additional 15,897,836 shares during the period. Bank of America Corp DE grew its stake in NVIDIA by 2.2% in the 2nd quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker's stock valued at $39,090,956,000 after buying an additional 4,165,875 shares during the last quarter. Amundi grew its stake in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in NVIDIA by 0.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock valued at $16,479,126,000 after buying an additional 555,221 shares during the last quarter. Finally, Deutsche Bank AG raised its holdings in NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker's stock worth $18,399,108,000 after acquiring an additional 2,045,101 shares during the period. Institutional investors own 65.27% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on NVDA. Mizuho set a $250.00 target price on shares of NVIDIA in a research report on Monday. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of NVIDIA in a research report on Monday. DZ Bank reaffirmed a "buy" rating on shares of NVIDIA in a research report on Wednesday, August 26th. UBS Group reiterated a "buy" rating on shares of NVIDIA in a research note on Friday, October 9th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $390.00 price objective on shares of NVIDIA in a research report on Tuesday, September 29th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $318.75.

NVIDIA Trading Down 5.5%

Shares of NVDA stock opened at $168.93 on Wednesday. The firm has a market capitalization of $4.07 trillion, a P/E ratio of 21.36, a price-to-earnings-growth ratio of 1.37 and a beta of 2.21. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $243.37. The firm's fifty day simple moving average is $217.99 and its 200 day simple moving average is $204.42. 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 (NASDAQ:NVDA - Get Free Report) last issued 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 firm had revenue of $96.22 billion during 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 business's revenue was up 105.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.05 EPS. As a group, sell-side analysts predict that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Dividend Announcement

The business 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 0.6%. NVIDIA's dividend payout ratio is currently 12.64%.

NVIDIA announced that its board has initiated a share repurchase plan on Monday, September 28th that permits the company to buy back $150 billion in shares. This buyback authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its stock is undervalued.

Insider Activity at NVIDIA

In related news, Director Mark A. Stevens sold 622,239 shares of the business's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director directly owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction dated 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 owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% 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. Over the last 90 days, insiders sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company's stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA, Rebellions and SK Telecom announced a collaboration to combine NVIDIA’s NVLink Fusion and infrastructure with Korean-designed AI processors, supporting the company’s effort to expand its platform and partnerships. Article: NVIDIA, Rebellions and SK Telecom collaboration
• Neutral Sentiment: Some analysts remain positive despite trimming targets: Citi lowered its target but kept a Buy rating, while Wells Fargo cut its target and maintained Overweight. Investors are also looking ahead to NVIDIA’s November 17 earnings report. Article: Nvidia Stock Falls as Citi Trims Price Target
• Negative Sentiment: The board has retained outside counsel for an independent investigation into reports that Huang was targeted by a foreign intelligence effort. FBI and congressional scrutiny raises risks of reputational damage, governance concerns and possible regulatory attention; investors are also focused on NVIDIA’s reliance on Huang and lack of a clear public succession plan. Article: Nvidia hires law firm to lead Jensen Huang probe
• Negative Sentiment: A report alleged that Huang’s relationship with Alice Huang helped facilitate at least $7.5 billion in chip shipments to Chinese firms, including companies reportedly subject to restrictions. The claims have not been established, and Reuters could not independently verify the report, but they intensify export-control and national-security concerns. Article: Why Nvidia Stock Just Fell Again
• Negative Sentiment: Shareholder securities class actions have been filed alleging investors were not adequately informed; the claims are allegations, not findings of wrongdoing. Separately, rising Treasury yields and a broader technology sell-off are weighing on growth-stock valuations. Article: NVIDIA securities class action notice

NVIDIA 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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