NVIDIA Corporation $NVDA Stock: Petrus Trust Company LTA Raises Stake

Key Points

• Petrus Trust Company LTA increased its NVIDIA stake by 205.8% in the second quarter, purchasing 131,702 additional shares for a total of 195,702 shares valued at approximately $39.2 million. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported strong quarterly results, with revenue rising 105.9% year over year to $96.22 billion and EPS of $2.22, exceeding analyst expectations. The company also authorized a $150 billion share-repurchase plan, while analysts maintain a consensus “Buy” rating and a $321.89 price target.
• Despite positive AI infrastructure partnerships and demand, risks include Microsoft’s growing reliance on internally developed AI chips, concerns over AI spending and valuation, technical weakness, and substantial insider selling.

Petrus Trust Company LTA raised its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 205.8% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 195,702 shares of the computer hardware maker's stock after buying an additional 131,702 shares during the quarter. NVIDIA accounts for 3.7% of Petrus Trust Company LTA's investment portfolio, making the stock its 8th largest holding. Petrus Trust Company LTA's holdings in NVIDIA were worth $39,158,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Lifetime Wealth Management P.C. acquired a new position in shares of NVIDIA during the 4th quarter valued at $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA during the first quarter worth $27,000. Langley Wealth Management LLC acquired a new stake in NVIDIA in the second quarter worth $34,000. Phillip James Consulting Co. acquired a new stake in NVIDIA in the first quarter worth $40,000. Finally, Bard Associates Inc. grew its holdings in NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock worth $54,000 after purchasing an additional 266 shares during the period. 65.27% of the stock is currently owned by institutional investors.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA and Cisco announced USFP, a next-generation optical module designed to support 400Gb/s-per-lane signals and up to 12.8Tb/s of capacity. The technology could help AI data centers scale bandwidth while reducing power use and network complexity. NVIDIA and Cisco announce USFP
• Positive Sentiment: Navitas Semiconductor is collaborating with NVIDIA on a 24-kilowatt power-delivery board for next-generation AI infrastructure. The single-stage design is intended to improve efficiency and reduce board space, reinforcing demand for NVIDIA-based AI factories. Navitas collaborates with NVIDIA
• Positive Sentiment: Bitdeer secured an eight-year agreement for a 60MW Malaysia facility designed for NVIDIA’s Vera Rubin systems, bringing its contracted AI data-center capacity to approximately 333.5MW. This provides another indication of long-term infrastructure demand. Bitdeer expands Malaysia AI campus
• Neutral Sentiment: NVIDIA is reportedly considering a larger investment in or acquisition of open-weight AI startup Reflection AI. The move could broaden NVIDIA’s software and model ecosystem, but discussions are preliminary and could fail to produce a deal. NVIDIA and Reflection AI talks
• Neutral Sentiment: Analysts and commentators remain divided: some argue triple-digit growth makes NVDA reasonably valued and see further upside, while others point to technical signs of a potential peak, a roughly $5.5 trillion valuation, and concentration risk in AI-related equities.
• Negative Sentiment: Microsoft said it plans to rely increasingly on its internally developed Maia chips for AI inference, potentially reducing its dependence on NVIDIA GPUs and intensifying competition from hyperscaler-designed silicon. Microsoft to rely more on Maia chips
• Negative Sentiment: Reports that OpenAI’s annualized revenue may be about $50 billion—below previously cited estimates—have raised questions about AI spending, infrastructure demand and the valuation of AI suppliers. Separately, Firmus’ canceled data-center IPO suggested financing conditions for AI infrastructure could be tightening.
• Negative Sentiment: Technical analysts warned that NVDA’s retreat from its record high could signal weakening momentum. Investor caution is also reflected in a reported $21 million options position betting the stock falls below $180 by January and continued insider selling, although these signals do not necessarily predict operating performance. Nvidia falls back from record high

NVIDIA Stock Down 1.3%

NVDA opened at $226.32 on Tuesday. The company's 50-day moving average price is $223.05 and its two-hundred day moving average price is $210.02. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $243.37. The stock has a market cap of $5.45 trillion, a price-to-earnings ratio of 28.61, a PEG ratio of 1.77 and a beta of 2.22. 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 (NASDAQ:NVDA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period in the previous year, the company posted $1.05 earnings per share. The business's revenue was up 105.9% on a year-over-year basis. As a group, equities analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA declared that its board has approved a share repurchase plan on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Stock repurchase plans are often a sign that the company's board of directors believes its shares are undervalued.

NVIDIA Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Thursday, September 10th. NVIDIA's payout ratio is currently 12.64%.

Insider Activity at NVIDIA

In other news, 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 value of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares of the company's stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 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 transaction, the director owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently commented on NVDA. Benchmark restated a "buy" rating and issued a $335.00 target price on shares of NVIDIA in a research note on Thursday, August 27th. Wedbush upped their price target on NVIDIA from $330.00 to $345.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Raymond James Financial set a $515.00 price target on NVIDIA and gave the stock a "strong-buy" rating in a report on Thursday, August 27th. Mizuho set a $315.00 price target on NVIDIA and gave the stock an "outperform" rating in a report on Thursday, August 27th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of NVIDIA in a research note on Monday, August 31st. Five analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $321.89.

NVIDIA Company Profile

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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