NVIDIA Corporation $NVDA Stock Sold by Cornerstone Enterprises LLC

Key Points

• Cornerstone Enterprises cut its NVIDIA stake by 41% in the third quarter, selling 23,696 shares and retaining 34,050 shares valued at about $7.8 million.
• Analyst sentiment remained broadly positive: 53 analysts rated NVIDIA Buy or Strong Buy, while the consensus rating was Buy with a $318.75 price target.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and authorized a $150 billion share-repurchase program.

Cornerstone Enterprises LLC reduced its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 41.0% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 34,050 shares of the computer hardware maker's stock after selling 23,696 shares during the period. NVIDIA makes up about 4.7% of Cornerstone Enterprises LLC's investment portfolio, making the stock its 6th biggest holding. Cornerstone Enterprises LLC's holdings in NVIDIA were worth $7,776,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently added to or reduced their stakes in the company. Montgomery Financial Services LLC purchased a new stake in shares of NVIDIA during the 2nd quarter valued at about $28,000. Newton One Investments LLC acquired a new position in NVIDIA during the 3rd quarter worth approximately $34,000. Phillip James Consulting Co. purchased a new position in NVIDIA in the 1st quarter worth approximately $40,000. Bard Associates Inc. boosted its holdings in NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock worth $54,000 after acquiring an additional 266 shares during the period. Finally, Frankly Finances LLC acquired a new stake in NVIDIA in the second quarter valued at approximately $60,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

NVDA has been the topic of a number of analyst reports. Morgan Stanley set a $230.00 price objective on shares of NVIDIA in a research note on Friday, October 2nd. Sanford C. Bernstein reissued an "outperform" rating on shares of NVIDIA in a research report on Monday. KeyCorp restated an "overweight" rating and issued a $330.00 target price on shares of NVIDIA in a research note on Monday, August 24th. Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Finally, Cantor Fitzgerald restated an "overweight" rating and set a $350.00 target price on shares of NVIDIA in a research note on Thursday, October 1st. Five research 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 stock. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of "Buy" and a consensus price target of $318.75.

NVIDIA News Roundup

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 Transactions at NVIDIA

In related news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction that occurred 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 sale, the chief financial officer owned 765,103 shares of the company's stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 firm's stock in a transaction that occurred 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 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 position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by company insiders.

NVIDIA Stock Performance

Shares of NVDA opened at $168.93 on Wednesday. The business's fifty day moving average price is $217.99 and its 200 day moving average price is $204.42. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $243.37. The stock has a market capitalization of $4.07 trillion, a PE ratio of 21.36, a price-to-earnings-growth ratio of 1.37 and a beta of 2.21. 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 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. The firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm's revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.05 earnings per share. Equities research analysts forecast that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were issued 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 is 12.64%.

NVIDIA announced that its board has authorized a share buyback program on Monday, September 28th that permits the company to buy back $150 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share repurchase programs are typically a sign that the company's management 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.