NVIDIA Corporation $NVDA Stock: Ninety One North America Inc. Cuts Position

Key Points

• Ninety One North America cut its NVIDIA stake by 6.2%, selling 9,022 shares and ending the quarter with 137,511 shares worth about $31.4 million.
• Several other major institutional investors increased their holdings, and institutions collectively owned 65.27% of NVIDIA stock.
• NVIDIA reported quarterly results above analyst expectations, with revenue up 105.9% year over year, and authorized a $150 billion share repurchase plan.

Ninety One North America Inc. reduced its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 6.2% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 137,511 shares of the computer hardware maker's stock after selling 9,022 shares during the period. NVIDIA makes up approximately 1.6% of Ninety One North America Inc.'s holdings, making the stock its 24th largest holding. Ninety One North America Inc.'s holdings in NVIDIA were worth $31,405,000 at the end of the most recent quarter.

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

NVIDIA Stock Performance

NVDA opened at $186.64 on Monday. The firm's 50 day moving average is $219.80 and its 200-day moving average is $204.53. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $243.37. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $4.50 trillion, a P/E ratio of 23.60, a P/E/G ratio of 1.43 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 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business's quarterly revenue was up 105.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.05 earnings per share. Analysts expect that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a share 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 buy up to 2.8% of its stock through open market purchases. Stock buyback plans are typically a sign 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 issued a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA's payout ratio is currently 12.64%.

Insiders Place Their Bets

In other news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction dated 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 directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 NVIDIA stock in a transaction dated 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 directly 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 SEC filing for this sale provides additional information. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 in the last quarter. 3.94% of the stock is owned by corporate insiders.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Some investors see the decline as a buying opportunity, citing NVIDIA’s strong AI-chip position and profitability. ARK Invest also reportedly added $45.9 million of NVDA shares during the sell-off. Nvidia Stock Rises on Dip-Buying: 3 Reasons to Be Optimistic
• Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate more revenue per gigawatt of data-center capacity than the current platform, supporting the case for continued growth. Jensen Huang Says Nvidia's Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
• Neutral Sentiment: NVIDIA’s upcoming Nov. 17 results are a key near-term catalyst: investors will look for evidence that demand and guidance can ease fears about AI spending and justify the stock’s recovery. Nvidia Investors Need to Be Paying Attention on Nov. 17
• Negative Sentiment: The rebound follows a steep sell-off that wiped roughly $450 billion from NVIDIA’s market value. Investors are worried that a Democratic-led Congress, data-center permitting or regulatory hurdles, high capital costs, and uncertain returns could delay infrastructure projects and weaken future chip demand. AI stocks hammered by midterm shock as data center buildout becomes a 'war of attrition'
• Negative Sentiment: Reports that NVIDIA may be taking on greater exposure to financially strained “neocloud” customers raise concern that it could face risks beyond selling chips if those providers struggle to fund data centers. As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Phillip Securities raised their target price on shares of NVIDIA from $285.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, August 31st. Yorkville Ives initiated coverage on shares of NVIDIA in a research report on Tuesday, October 6th. They set an "outperform" rating and a $300.00 price target for the company. Rosenblatt Securities reiterated a "buy" rating and issued a $390.00 price target on shares of NVIDIA in a report on Tuesday, September 29th. Benchmark reissued a "buy" rating and issued a $335.00 price objective on shares of NVIDIA in a research report on Thursday, August 27th. Finally, Wedbush boosted their price objective on NVIDIA from $330.00 to $345.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $318.85.

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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