NVIDIA Corporation $NVDA Stock Holdings Cut by State of Alaska Department of Revenue

Key Points

• Alaska’s Department of Revenue cut its NVIDIA stake by 2.6% in the third quarter, selling 71,070 shares and ending with 2.65 million shares worth about $605.5 million. NVIDIA nevertheless remained its largest portfolio holding, at 5.7% of its portfolio.
• Institutional investors and hedge funds own 65.27% of NVIDIA shares; several major holders, including State Street and Bank of America, increased their positions in the periods reported.
• NVIDIA’s latest quarterly results beat estimates, with revenue up 105.9% year over year, but reports of an investigation involving CEO Jensen Huang have raised potential governance, legal, and reputational concerns.

State of Alaska Department of Revenue reduced its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.6% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 2,651,090 shares of the computer hardware maker's stock after selling 71,070 shares during the quarter. NVIDIA comprises 5.7% of State of Alaska Department of Revenue's portfolio, making the stock its biggest position. State of Alaska Department of Revenue's holdings in NVIDIA were worth $605,455,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of NVDA. State Street Corp raised its stake in NVIDIA by 1.6% during the 2nd quarter. State Street Corp now owns 1,009,783,437 shares of the computer hardware maker's stock worth $202,047,568,000 after buying an additional 15,897,836 shares during the period. Bank of America Corp DE increased its holdings in shares of NVIDIA by 2.2% in the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker's stock worth $39,090,956,000 after acquiring an additional 4,165,875 shares in the last quarter. Amundi raised its position in shares of NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares during the period. Deutsche Bank AG lifted its holdings in shares of NVIDIA by 2.3% during the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker's stock valued at $18,399,108,000 after purchasing an additional 2,045,101 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its position in shares of NVIDIA by 0.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock valued at $16,479,126,000 after purchasing an additional 555,221 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA News Roundup

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 Upgrades and Downgrades

NVDA has been the topic of a number of research reports. JPMorgan Chase & Co. lifted their price target on shares of NVIDIA from $280.00 to $320.00 and gave the company an "overweight" rating in a research note on Thursday, August 27th. Wedbush lifted their price target on NVIDIA from $330.00 to $345.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Aletheia Capital downgraded NVIDIA from a "buy" rating to a "hold" rating in a report on Monday. Royal Bank Of Canada restated an "outperform" rating and issued a $330.00 target price on shares of NVIDIA in a research note on Monday. Finally, Piper Sandler began coverage on shares of NVIDIA in a report on Wednesday, September 9th. They issued an "overweight" rating and a $300.00 price objective on the stock. Five research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $317.57.

Insider Buying and Selling at NVIDIA

In related news, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value 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. This represents a 21.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Colette Kress sold 34,918 shares of the firm'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 sale, the chief financial officer directly owned 765,103 shares of the company's stock, valued at $167,595,812.15. This represents a 4.36% decrease in their position. 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 over the last 90 days. Company insiders own 3.94% of the company's stock.

NVIDIA Trading Down 4.3%

Shares of NVIDIA stock opened at $178.67 on Tuesday. The stock has a market cap of $4.31 trillion, a P/E ratio of 22.59, a P/E/G ratio of 1.54 and a beta of 2.21. The company has a quick ratio of 3.85, a current ratio of 4.59 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. The business's 50 day moving average is $219.03 and its 200-day moving average is $204.50.

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 for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. During the same period last year, the business earned $1.05 earnings per share. The firm's revenue was up 105.9% on a year-over-year basis. Equities research analysts predict that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

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

NVIDIA announced that its Board of Directors has initiated a share repurchase program on Monday, September 28th that permits the company to repurchase $150 billion in outstanding shares. This buyback authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Stock buyback programs are typically an indication that the company's board believes its stock is undervalued.

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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