NVIDIA Corporation $NVDA Stock: Assenagon Asset Management S.A. Decreases Position

Key Points

• Assenagon Asset Management cut its NVIDIA stake by 23.4% in the third quarter, selling about 6.17 million shares. It still held 20.17 million shares worth roughly $4.61 billion, making NVIDIA its fifth-largest portfolio holding.
• Institutional investors own 65.27% of NVIDIA, while company insiders sold about 1.77 million shares worth $399 million over the past 90 days. The reported executive sales were made under pre-arranged Rule 10b5-1 plans.
• NVIDIA reported quarterly revenue growth of 105.9% and beat earnings estimates; analysts’ average rating was “Buy.” The article also flags investor concerns about a board investigation involving CEO Jensen Huang and potential legal, regulatory, and reputational risks.

Assenagon Asset Management S.A. lessened its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 23.4% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 20,166,206 shares of the computer hardware maker's stock after selling 6,171,018 shares during the quarter. NVIDIA makes up approximately 3.4% of Assenagon Asset Management S.A.'s portfolio, making the stock its 5th biggest holding. Assenagon Asset Management S.A. owned 0.08% of NVIDIA worth $4,605,558,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Boyd Wealth Management LLC grew its position in NVIDIA by 273.4% in the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock worth $1,830,000 after acquiring an additional 6,696 shares in the last quarter. Ally Financial Inc. increased its stake in NVIDIA by 10.3% in the second quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock valued at $34,415,000 after acquiring an additional 16,000 shares during the last quarter. Altshuler Shaham Ltd raised its position in NVIDIA by 6,451.9% during the first quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock valued at $111,134,000 after purchasing an additional 627,510 shares in the last quarter. Vanguard Capital Wealth Advisors raised its position in NVIDIA by 5.6% during the second quarter. Vanguard Capital Wealth Advisors now owns 52,163 shares of the computer hardware maker's stock valued at $10,437,000 after purchasing an additional 2,758 shares in the last quarter. Finally, Baker Tilly Wealth Management LLC lifted its stake in NVIDIA by 7.4% during the second quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock worth $14,386,000 after purchasing an additional 4,958 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at NVIDIA

In other NVIDIA news, EVP Timothy S. Teter sold 30,460 shares of the firm's stock in a transaction that occurred on 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 transaction, the executive vice president 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 over the last ninety days. 3.94% of the stock is owned by corporate insiders.

Key NVIDIA News

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

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Zacks Research upgraded NVIDIA from a "hold" rating to a "strong-buy" rating in a report on Monday, September 21st. UBS Group reiterated a "buy" rating on shares of NVIDIA in a research report on Friday, October 9th. Jefferies Financial Group reissued a "buy" rating on shares of NVIDIA in a report on Wednesday, August 26th. DA Davidson restated a "buy" rating and issued a $300.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Finally, KGI Securities upped their target price on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $317.57.

NVIDIA Price Performance

NVDA stock opened at $178.67 on Tuesday. The firm's 50-day moving average price is $219.03 and its two-hundred day moving average price is $204.50. The stock has a market capitalization 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 current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $243.37.

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, 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 business had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. During the same quarter last year, the business posted $1.05 EPS. The business's revenue was up 105.9% on a year-over-year basis. As a group, equities analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA announced that its Board of Directors has approved a stock buyback 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 purchase up to 2.8% of its stock through open market purchases. Share buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

NVIDIA Dividend Announcement

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

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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