NVIDIA Corporation $NVDA Stock Purchased by Sustainable Growth Advisers LP

Key Points

• Sustainable Growth Advisers increased its NVIDIA stake by 19.9% in the third quarter, adding 940,946 shares to hold 5.66 million shares worth about $1.29 billion.
• NVIDIA represents 14.1% of the adviser’s portfolio and is its largest holding; institutional investors and hedge funds collectively own 65.27% of the company’s stock.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and authorized a $150 billion share repurchase plan.

Sustainable Growth Advisers LP raised its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 19.9% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 5,661,090 shares of the computer hardware maker's stock after purchasing an additional 940,946 shares during the quarter. NVIDIA makes up about 14.1% of Sustainable Growth Advisers LP's portfolio, making the stock its biggest holding. Sustainable Growth Advisers LP's holdings in NVIDIA were worth $1,292,880,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. State Street Corp increased its holdings 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 worth $202,047,568,000 after buying an additional 15,897,836 shares during the last quarter. Bank of America Corp DE lifted its stake in 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 valued at $39,090,956,000 after acquiring an additional 4,165,875 shares during the last quarter. Amundi grew its position in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock valued at $23,329,141,000 after acquiring an additional 12,575,177 shares during the period. Deutsche Bank AG grew its position in shares of NVIDIA by 2.3% in 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 acquiring an additional 2,045,101 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in shares of NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker's stock worth $16,479,126,000 after purchasing an additional 555,221 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA, Rebellions and SK Telecom announced a collaboration to combine NVIDIA’s NVLink Fusion and infrastructure with Korean-designed AI processors, supporting the company’s effort to expand its platform and partnerships. Article: NVIDIA, Rebellions and SK Telecom collaboration
• Neutral Sentiment: Some analysts remain positive despite trimming targets: Citi lowered its target but kept a Buy rating, while Wells Fargo cut its target and maintained Overweight. Investors are also looking ahead to NVIDIA’s November 17 earnings report. Article: Nvidia Stock Falls as Citi Trims Price Target
• Negative Sentiment: The board has retained outside counsel for an independent investigation into reports that Huang was targeted by a foreign intelligence effort. FBI and congressional scrutiny raises risks of reputational damage, governance concerns and possible regulatory attention; investors are also focused on NVIDIA’s reliance on Huang and lack of a clear public succession plan. Article: Nvidia hires law firm to lead Jensen Huang probe
• Negative Sentiment: A report alleged that Huang’s relationship with Alice Huang helped facilitate at least $7.5 billion in chip shipments to Chinese firms, including companies reportedly subject to restrictions. The claims have not been established, and Reuters could not independently verify the report, but they intensify export-control and national-security concerns. Article: Why Nvidia Stock Just Fell Again
• Negative Sentiment: Shareholder securities class actions have been filed alleging investors were not adequately informed; the claims are allegations, not findings of wrongdoing. Separately, rising Treasury yields and a broader technology sell-off are weighing on growth-stock valuations. Article: NVIDIA securities class action notice

Insider Buying and Selling at NVIDIA

In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the stock in a transaction dated 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 $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the business'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 owned 2,336,531 shares of the company's stock, valued at $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. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 in the last three months. 3.94% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Mizuho set a $250.00 target price on shares of NVIDIA in a report on Monday. China Renaissance lifted their price target on NVIDIA from $319.00 to $330.00 and gave the stock a "buy" rating in a report on Monday, August 31st. TD Cowen reissued a "buy" rating on shares of NVIDIA in a research report on Tuesday, August 18th. BMO Capital Markets set a $340.00 price objective on NVIDIA and gave the company an "outperform" rating in a research note on Thursday, August 20th. Finally, KGI Securities raised their price objective on NVIDIA from $335.00 to $345.00 in a research report on Thursday, August 27th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $318.75.

NVIDIA Price Performance

Shares of NVDA opened at $168.93 on Wednesday. The firm has a market capitalization of $4.07 trillion, a PE ratio of 21.36, a PEG ratio of 1.37 and a beta of 2.21. The company's 50-day moving average is $217.99 and its 200-day moving average is $204.42. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA's quarterly revenue was up 105.9% compared to the same quarter last year. During the same quarter last year, the company posted $1.05 EPS. Equities analysts forecast that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA declared that its board has approved a stock repurchase plan on Monday, September 28th that permits the company to repurchase $150 billion in shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

NVIDIA Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid 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 0.6%. NVIDIA's dividend payout ratio is 12.64%.

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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