NVIDIA Corporation $NVDA Stock Sold by Herold Advisors Inc.

Key Points

• Herold Advisors cut its NVIDIA stake by 7.8% in the third quarter, selling 8,874 shares; it retained 105,203 shares worth about $24 million, making NVIDIA its third-largest holding.
• Analyst views were mixed: MarketBeat reported a “Moderate Buy” consensus and a $277.89 average price target, while some firms downgraded the stock or lowered their targets.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and authorized a $150 billion share-repurchase program.

Herold Advisors Inc. decreased its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.8% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 105,203 shares of the computer hardware maker's stock after selling 8,874 shares during the quarter. NVIDIA makes up 4.4% of Herold Advisors Inc.'s holdings, making the stock its 3rd biggest position. Herold Advisors Inc.'s holdings in NVIDIA were worth $24,026,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of NVDA. Boyd Wealth Management LLC lifted its stake in shares of NVIDIA by 273.4% in the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker's stock worth $1,830,000 after buying an additional 6,696 shares in the last quarter. Ally Financial Inc. raised its holdings in NVIDIA by 10.3% in the 2nd quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock valued at $34,415,000 after acquiring an additional 16,000 shares during the last quarter. Altshuler Shaham Ltd lifted its stake in NVIDIA by 6,451.9% in the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock worth $111,134,000 after purchasing an additional 627,510 shares in the last quarter. Vanguard Capital Wealth Advisors lifted its stake in NVIDIA by 5.6% in the 2nd quarter. Vanguard Capital Wealth Advisors now owns 52,163 shares of the computer hardware maker's stock worth $10,437,000 after purchasing an additional 2,758 shares in the last quarter. Finally, Baker Tilly Wealth Management LLC lifted its stake in NVIDIA by 7.4% in the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock worth $14,386,000 after purchasing an additional 4,958 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on NVDA shares. Deutsche Bank reiterated a "buy" rating on shares of NVIDIA in a research report on Monday, August 31st. Robert W. Baird cut NVIDIA from an "outperform" rating to a "neutral" rating and dropped their target price for the company from $500.00 to $200.00 in a report on Wednesday. Oppenheimer downgraded NVIDIA from an "outperform" rating to a "market perform" rating in a research note on Thursday. Yorkville Ives began coverage on NVIDIA in a research note on Tuesday, October 6th. They issued an "outperform" rating and a $300.00 target price for the company. Finally, 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. Five analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and thirteen have issued a Hold rating to the company. According to MarketBeat.com, NVIDIA has an average rating of "Moderate Buy" and a consensus price target of $277.89.

NVIDIA Trading Down 2.0%

Shares of NVDA stock traded down $3.34 during trading hours on Friday, hitting $162.85. The company had a trading volume of 363,372,273 shares, compared to its average volume of 196,617,360. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The stock has a market capitalization of $3.92 trillion, a PE ratio of 20.59, a price-to-earnings-growth ratio of 1.28 and a beta of 2.21. The company's fifty day moving average is $214.64 and its 200 day moving average is $204.12. NVIDIA Corporation has a fifty-two week low of $148.80 and a fifty-two week high of $243.37.

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 the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. NVIDIA's revenue was up 105.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.05 EPS. Research analysts expect that NVIDIA Corporation will post 9.29 earnings per share for the current fiscal year.

NVIDIA Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors 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 0.6%. NVIDIA's dividend payout ratio (DPR) is 12.64%.

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

Insider Activity at NVIDIA

In related news, EVP Timothy Teter sold 30,460 shares of the business's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at $598,810,648. The trade was a 1.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 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 transaction, the director directly owned 2,336,531 shares of the company's stock, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company's stock.

Recent NVIDIA Headlines

These are some of the NVDA headlines that stood out recently:

• Positive Sentiment: Investors will look to the November 17 earnings report for evidence that AI demand remains robust. Articles cite strong infrastructure spending and a $108 billion revenue outlook as potential supports for the business. NVIDIA earnings preview
• Negative Sentiment: Huang’s departure creates uncertainty around succession and strategy. CFO Colette Kress is interim CEO, and the board has not yet selected a search firm for a permanent replacement. CEO search update
• Negative Sentiment: HSBC downgraded NVIDIA to Hold with a $170 target, and several firms have reduced price targets. Analysts also warn that leadership uncertainty could give chip rivals more opportunity to win business. HSBC downgrade coverage

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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