Ninety One UK Ltd Sells 829,700 Shares of NVIDIA Corporation $NVDA

Key Points

• Ninety One UK cut its NVIDIA stake by 829,700 shares, or 7.2%, but still held 10.73 million shares worth about $2.45 billion, making NVIDIA its second-largest portfolio holding.
• Analyst sentiment remained broadly positive: 55 analysts rated the stock Buy or Strong Buy, with a consensus price target of $317.57.
• NVIDIA beat quarterly earnings and revenue expectations, with revenue up 105.9% year over year; its board also authorized a $150 billion share repurchase plan.

Ninety One UK Ltd decreased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.2% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 10,733,853 shares of the computer hardware maker's stock after selling 829,700 shares during the quarter. NVIDIA comprises approximately 5.7% of Ninety One UK Ltd's portfolio, making the stock its 2nd biggest holding. Ninety One UK Ltd's holdings in NVIDIA were worth $2,451,397,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Jupiter Topco LLC bought a new stake in shares of NVIDIA during the 2nd quarter valued at $16,156,076,000. Van ECK Associates Corp boosted its stake in NVIDIA by 34.7% in the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker's stock worth $15,176,771,000 after purchasing an additional 19,522,304 shares during the period. State Street Corp boosted its stake in NVIDIA by 1.6% in 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 purchasing an additional 15,897,836 shares during the period. Amundi boosted 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 worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. Finally, Nykredit A S purchased a new position in NVIDIA during the 2nd quarter valued at about $2,315,956,000. Hedge funds and other institutional investors own 65.27% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on NVDA. Piper Sandler started coverage on NVIDIA in a research report on Wednesday, September 9th. They set an "overweight" rating and a $300.00 price target on the stock. Wells Fargo & Company set a $210.00 price objective on shares of NVIDIA in a research note on Friday, October 2nd. Wedbush upped their target price on shares of NVIDIA from $330.00 to $345.00 and gave the stock an "outperform" rating in a report on Thursday, August 27th. JPMorgan Chase & Co. increased their target price on shares of NVIDIA from $280.00 to $320.00 and gave the stock an "overweight" rating in a research note on Thursday, August 27th. Finally, Evercore set a $465.00 price target on shares of NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of "Buy" and a consensus target price of $317.57.

Key Headlines Impacting NVIDIA

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

NASDAQ NVDA opened at $178.67 on Tuesday. The company has a 50-day simple moving average of $219.03 and a two-hundred day simple moving average of $204.50. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $243.37. The firm has a market cap of $4.31 trillion, a price-to-earnings ratio of 22.59, a PEG ratio of 1.54 and a beta of 2.21. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the previous year, the business earned $1.05 earnings per share. The company's quarterly revenue was up 105.9% on a year-over-year basis. On average, equities analysts forecast that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's payout ratio is 12.64%.

NVIDIA declared that its Board of Directors has approved a stock repurchase plan on Monday, September 28th that permits the company to repurchase $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. Share buyback plans are often an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction that occurred 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 sale, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy Teter sold 30,460 shares of the stock in a transaction that occurred 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 of the company's stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their position. 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 have sold 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. Company insiders own 3.94% of the company's stock.

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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