NVIDIA Corporation $NVDA Shares Bought by AlphaStar Capital Management LLC

Key Points

• AlphaStar Capital Management increased its NVIDIA stake by 5.9% in the third quarter, adding 9,968 shares to reach 179,272 shares valued at about $40.9 million.
• NVIDIA reported quarterly earnings of $2.22 per share and revenue of $96.22 billion, beating analyst estimates; revenue rose 105.9% year over year. The company also authorized a $150 billion share-repurchase program.
• Analyst views are mixed: NVIDIA has a “Moderate Buy” consensus rating and a $277.89 average target, while some firms have downgraded the stock or lowered targets.

AlphaStar Capital Management LLC raised its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 5.9% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 179,272 shares of the computer hardware maker's stock after purchasing an additional 9,968 shares during the period. NVIDIA accounts for approximately 2.4% of AlphaStar Capital Management LLC's portfolio, making the stock its 11th largest holding. AlphaStar Capital Management LLC's holdings in NVIDIA were worth $40,942,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Retirement Wealth Solutions LLC increased its holdings in NVIDIA by 1.2% during the 2nd quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker's stock worth $825,000 after acquiring an additional 47 shares during the period. LightSquare Wealth Management LLC boosted its stake in shares of NVIDIA by 0.3% during the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock valued at $3,741,000 after purchasing an additional 49 shares in the last quarter. CWS Financial Advisors LLC lifted its holdings in shares of NVIDIA by 3.1% during the third quarter. CWS Financial Advisors LLC now owns 1,653 shares of the computer hardware maker's stock valued at $377,000 after purchasing an additional 49 shares during the last quarter. Defender Capital LLC. increased its holdings in shares of NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock worth $1,507,000 after purchasing an additional 50 shares in the last quarter. Finally, Kooman & Associates grew its stake in shares of NVIDIA by 0.6% during the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker's stock valued at $1,694,000 after purchasing an additional 50 shares during the period. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Trading Down 2.0%

Shares of NVIDIA stock opened at $162.85 on Friday. NVIDIA Corporation has a 1 year low of $148.80 and a 1 year 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 market cap of $3.92 trillion, a PE ratio of 20.59, a price-to-earnings-growth ratio of 1.28 and a beta of 2.21. The firm has a fifty day moving average price of $214.64 and a 200 day moving average price of $204.12.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released 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 business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the business posted $1.05 EPS. The company's revenue was up 105.9% on a year-over-year basis. Equities research analysts predict that NVIDIA Corporation will post 9.29 earnings per share for the current year.

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

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's dividend payout ratio is presently 12.64%.

Insider Activity

In related news, CFO Colette Kress sold 34,918 shares of the business's stock in a transaction on 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 completion of the sale, the chief financial officer owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the company'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 transaction, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 in the last quarter. Corporate insiders own 3.94% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have commented on NVDA. Benchmark reissued a "buy" rating and set a $335.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Oppenheimer lowered NVIDIA from an "outperform" rating to a "market perform" rating in a report on Thursday. Citigroup lowered their price target on NVIDIA from $315.00 to $285.00 and set a "buy" rating for the company in a research report on Tuesday. Wells Fargo & Company dropped their price objective on shares of NVIDIA from $315.00 to $300.00 and set an "overweight" rating for the company in a research note on Tuesday. Finally, William Blair cut shares of NVIDIA from an "outperform" rating to a "market perform" rating in a research report on Thursday. Five research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $277.89.

Key Stories Impacting NVIDIA

Investors following NVDA have been watching these stories:

• Positive Sentiment: Investors will look to the November 17 earnings report for evidence that AI demand remains robust. Articles cite strong infrastructure spending and a $108 billion revenue outlook as potential supports for the business. NVIDIA earnings preview
• Neutral Sentiment: Investors are also being urged to judge AI demand by the revenue generated from computing capacity—not just the capital companies spend to build it. That could sharpen questions about how quickly AI infrastructure investments translate into sales. Barron's analysis of AI revenue
• Negative Sentiment: HSBC downgraded NVIDIA to Hold with a $170 target, and several firms have reduced price targets. Analysts also warn that leadership uncertainty could give chip rivals more opportunity to win business. HSBC downgrade coverage

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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