WCM Investment Management LLC Grows Stock Position in NVIDIA Corporation (NASDAQ:NVDA)

Key Points

• WCM Investment Management LLC has increased its stake in NVIDIA Corporation by 0.6%, bringing its total shares to over 6 million and making NVIDIA its 24th largest holding.
• NVIDIA reported a net margin of 51.69% and a year-over-year revenue increase of 69.2%, though it missed earnings expectations with $0.81 EPS against an estimate of $0.87.
• The company recently announced a quarterly dividend of $0.01 per share, with a yield of 0.02%, demonstrating a commitment to returning value to shareholders.

WCM Investment Management LLC boosted its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 0.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 6,121,714 shares of the computer hardware maker's stock after acquiring an additional 35,376 shares during the period. NVIDIA accounts for about 1.7% of WCM Investment Management LLC's investment portfolio, making the stock its 24th largest position. WCM Investment Management LLC's holdings in NVIDIA were worth $671,368,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the company. Condor Capital Management lifted its stake in NVIDIA by 3.6% in the 4th quarter. Condor Capital Management now owns 2,559 shares of the computer hardware maker's stock worth $344,000 after purchasing an additional 89 shares in the last quarter. Kelly Financial Services LLC increased its holdings in shares of NVIDIA by 2.0% in the first quarter. Kelly Financial Services LLC now owns 4,736 shares of the computer hardware maker's stock worth $513,000 after purchasing an additional 94 shares during the last quarter. Foundry Financial Group Inc. lifted its position in shares of NVIDIA by 2.2% in the fourth quarter. Foundry Financial Group Inc. now owns 4,387 shares of the computer hardware maker's stock worth $589,000 after buying an additional 96 shares in the last quarter. Mendel Capital Management LLC boosted its stake in NVIDIA by 0.8% during the first quarter. Mendel Capital Management LLC now owns 11,871 shares of the computer hardware maker's stock valued at $1,287,000 after buying an additional 96 shares during the last quarter. Finally, Wallace Hart LLC grew its holdings in NVIDIA by 3.9% during the 4th quarter. Wallace Hart LLC now owns 2,599 shares of the computer hardware maker's stock valued at $349,000 after buying an additional 97 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Stock Up 2.1%

Shares of NVIDIA stock traded up $3.76 during trading on Wednesday, reaching $179.27. The company's stock had a trading volume of 170,353,567 shares, compared to its average volume of 149,383,152. The company has a 50-day simple moving average of $153.55 and a two-hundred day simple moving average of $131.72. NVIDIA Corporation has a 1-year low of $86.62 and a 1-year high of $179.89. The company has a market cap of $4.37 trillion, a price-to-earnings ratio of 57.83, a P/E/G ratio of 1.55 and a beta of 2.13. The company has a quick ratio of 2.96, a current ratio of 3.39 and a debt-to-equity ratio of 0.10.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data on Wednesday, May 28th. The computer hardware maker reported $0.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.87 by ($0.06). The company had revenue of $44.06 billion for the quarter, compared to analyst estimates of $43.09 billion. NVIDIA had a net margin of 51.69% and a return on equity of 105.09%. The business's revenue was up 69.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.61 EPS. As a group, equities analysts forecast that NVIDIA Corporation will post 2.77 earnings per share for the current year.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 3rd. Stockholders of record on Wednesday, June 11th were paid a dividend of $0.01 per share. The ex-dividend date of this dividend was Wednesday, June 11th. This represents a $0.04 annualized dividend and a dividend yield of 0.02%. NVIDIA's payout ratio is currently 1.29%.

Insider Activity

In other news, CEO Jen Hsun Huang sold 75,000 shares of the firm's stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $175.22, for a total value of $13,141,500.00. Following the completion of the transaction, the chief executive officer directly owned 73,898,225 shares in the company, valued at $12,948,446,984.50. This trade represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Colette Kress sold 27,650 shares of the company's stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $170.89, for a total value of $4,725,108.50. Following the completion of the sale, the chief financial officer owned 2,984,516 shares in the company, valued at approximately $510,023,939.24. This represents a 0.92% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 5,264,800 shares of company stock valued at $786,735,503 over the last ninety days. 4.17% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Loop Capital raised their target price on shares of NVIDIA from $175.00 to $250.00 and gave the company a "buy" rating in a report on Wednesday, June 25th. HSBC cut shares of NVIDIA from a "buy" rating to a "hold" rating and set a $120.00 price objective for the company. in a research note on Thursday, April 3rd. The Goldman Sachs Group assumed coverage on shares of NVIDIA in a research report on Thursday, July 10th. They set a "buy" rating and a $185.00 target price on the stock. Seaport Res Ptn upgraded NVIDIA to a "strong sell" rating in a research report on Wednesday, April 30th. Finally, Hsbc Global Res cut NVIDIA from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 3rd. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, thirty-three have issued a buy rating and four have given a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $182.03.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.