NVIDIA Corporation $NVDA Position Cut by Franchise GP Ltd

Key Points

• Franchise GP Ltd cut its NVIDIA stake by 24.3% in the third quarter, selling 23,939 shares. It still held 74,680 shares, representing 7.3% of its portfolio.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and earnings per share of $2.22, beating analyst estimates. The company also authorized a $150 billion share-repurchase plan.
• The article notes several investor and governance concerns, including reported scrutiny involving CEO Jensen Huang and shareholder lawsuits; these claims remain allegations. Analysts cited in the article largely remained positive, with a consensus Buy rating.

Franchise GP Ltd trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 24.3% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 74,680 shares of the computer hardware maker's stock after selling 23,939 shares during the period. NVIDIA comprises 7.3% of Franchise GP Ltd's investment portfolio, making the stock its 4th largest position. Franchise GP Ltd's holdings in NVIDIA were worth $17,055,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Sherman Wealth Management LLC increased its holdings in NVIDIA by 34.9% in the 3rd quarter. Sherman Wealth Management LLC now owns 11,110 shares of the computer hardware maker's stock valued at $2,537,000 after purchasing an additional 2,872 shares in the last quarter. Michael J. Porro & Co. Financial Advisors Inc. lifted its stake in shares of NVIDIA by 21.3% during the third quarter. Michael J. Porro & Co. Financial Advisors Inc. now owns 12,180 shares of the computer hardware maker's stock worth $2,782,000 after purchasing an additional 2,135 shares in the last quarter. Halbert Hargrove Global Advisors LLC lifted its stake in shares of NVIDIA by 12.8% during the third quarter. Halbert Hargrove Global Advisors LLC now owns 554 shares of the computer hardware maker's stock worth $126,000 after purchasing an additional 63 shares in the last quarter. Sustainable Growth Advisers LP boosted its position in shares of NVIDIA by 19.9% in the third quarter. Sustainable Growth Advisers LP now owns 5,661,090 shares of the computer hardware maker's stock worth $1,292,880,000 after buying an additional 940,946 shares during the period. Finally, Morangie Management LLC boosted its position in shares of NVIDIA by 0.4% in the third quarter. Morangie Management LLC now owns 14,968 shares of the computer hardware maker's stock worth $3,422,000 after buying an additional 66 shares during the period. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Price Performance

Shares of NVDA opened at $168.93 on Wednesday. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $243.37. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock has a fifty day moving average price of $217.99 and a 200 day moving average price of $204.42. The company has a market cap of $4.07 trillion, a P/E ratio of 21.36, a PEG ratio of 1.37 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $92.27 billion. During the same quarter in the prior year, the firm earned $1.05 EPS. The company's revenue was up 105.9% compared to the same quarter last year. On average, research analysts forecast that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Monday, September 28th that allows the company to repurchase $150 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Share buyback plans are usually an indication that the company's management believes its shares are undervalued.

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 paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA's dividend payout ratio is currently 12.64%.

Key Stories 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

Insider Activity

In related news, EVP Timothy Teter sold 30,460 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 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 transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company's stock.

Analyst Upgrades and Downgrades

NVDA has been the topic of a number of analyst reports. Daiwa Securities Group dropped their price objective on shares of NVIDIA from $255.00 to $245.00 and set an "outperform" rating on the stock in a research note on Thursday, September 17th. Evercore set a $465.00 target price on shares of NVIDIA and gave the company an "outperform" rating in a research note on Thursday, August 27th. Rothschild & Co Redburn raised their price target on shares of NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. DA Davidson reaffirmed a "buy" rating and set a $300.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. Finally, President Capital lifted their price target on shares of NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $318.75.

About NVIDIA

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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