NVIDIA Corporation $NVDA Stock: Forum Financial Management LP Trims Stake

Key Points

• Forum Financial Management LP cut its NVIDIA stake by 7.6% in the third quarter, selling 5,243 shares. It retained 63,794 shares, valued at about $14.6 million.
• NVIDIA reported quarterly EPS of $2.22, ahead of the $2.09 consensus estimate, while revenue of $96.22 billion exceeded forecasts and rose 105.9% year over year.
• The company authorized a $150 billion share-repurchase program, allowing it to buy back up to 2.8% of its outstanding shares.

Forum Financial Management LP trimmed its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.6% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 63,794 shares of the computer hardware maker's stock after selling 5,243 shares during the period. NVIDIA accounts for 0.2% of Forum Financial Management LP's holdings, making the stock its 28th largest position. Forum Financial Management LP's holdings in NVIDIA were worth $14,569,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of NVDA. Retirement Wealth Solutions LLC grew its holdings in shares of NVIDIA by 1.2% during the 2nd quarter. Retirement Wealth Solutions LLC now owns 4,121 shares of the computer hardware maker's stock valued at $825,000 after purchasing an additional 47 shares during the last quarter. LightSquare Wealth Management LLC increased its holdings in shares of NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker's stock worth $3,741,000 after buying an additional 49 shares in the last quarter. Defender Capital LLC. increased its holdings in shares of NVIDIA by 0.7% during the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker's stock worth $1,507,000 after buying an additional 50 shares in the last quarter. Kooman & Associates grew its position in NVIDIA by 0.6% during the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker's stock worth $1,694,000 after acquiring an additional 50 shares during the last quarter. Finally, Roof Eidam Maycock Peralta LLC increased its holdings in NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker's stock worth $3,767,000 after purchasing an additional 50 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

NVIDIA Stock Performance

Shares of NVIDIA stock opened at $166.19 on Friday. The business has a 50-day moving average price of $215.96 and a two-hundred day moving average price of $204.25. NVIDIA Corporation has a 1-year low of $148.80 and a 1-year high of $243.37. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The company has a market cap of $4.01 trillion, a P/E ratio of 21.01, a PEG ratio of 1.34 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm's revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.05 EPS. As a group, analysts anticipate that NVIDIA Corporation will post 9.29 EPS for the current year.

NVIDIA Announces Dividend

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

NVIDIA declared that its board has initiated a share buyback program on Monday, September 28th that authorizes the company to buy back $150 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its stock through open market purchases. Share buyback programs are usually a sign that the company's board believes its shares are undervalued.

NVIDIA News Roundup

These are some of the NVDA news items that stood out recently:

• Positive Sentiment: Some investors see the selloff as an opportunity: retail traders reportedly bought about $111 million of NVDA in the first 30 minutes of trading. Bullish commentary points to NVIDIA’s established AI business and continuing infrastructure demand. Article: Huang Exit Fuels Nvidia Bulls
• Neutral Sentiment: Kress’s experience as CFO and the board’s assurance that customer commitments and the product roadmap will continue provide some operational continuity, though she is serving only on an interim basis. NVIDIA’s fiscal Q3 report on Nov. 17 is the next key test for demand, guidance and confidence in the transition. Article: Colette Kress named interim CEO
• Negative Sentiment: Huang’s departure raises key-person and succession concerns after 33 years at the helm. The surrounding allegations and scrutiny—including questions about possible chip diversion to China—could invite tighter export controls and damage investor confidence; these claims remain under investigation and are not established findings. Article: Jensen Huang steps down

Analyst Ratings Changes

Several equities analysts have commented on NVDA shares. Truist Financial downgraded NVIDIA from a "buy" rating to a "hold" rating and set a $174.00 target price for the company. in a research report on Thursday. Wall Street Zen cut shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 24th. Zacks Research upgraded shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 21st. Bank of America dropped their price target on shares of NVIDIA from $350.00 to $280.00 and set a "buy" rating for the company in a research note on Thursday. Finally, Deutsche Bank restated a "buy" rating on shares of NVIDIA in a report on Monday, August 31st. Five equities research analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat.com, NVIDIA currently has a consensus rating of "Moderate Buy" and a consensus target price of $283.63.

Insider Activity at NVIDIA

In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the firm's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction 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 $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 in the last quarter. Company insiders own 3.94% of the company's stock.

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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