NVIDIA Corporation $NVDA Stock Sold by SFM LLC d b a Sweeney Financial Advisors

Key Points

• SFM LLC d/b/a Sweeney Financial Advisors cut its NVIDIA stake by 21.8% in the third quarter, selling 5,398 shares; it retained 19,345 shares valued at $4.42 million.
• Several other large institutional investors increased their NVIDIA holdings, and analysts maintained a consensus Buy rating with a $318.85 average price target.
• NVIDIA’s latest reported quarter beat earnings and revenue expectations, with revenue up 105.9% year over year; however, concerns about data-center investment hurdles and financially strained cloud customers remain risks.

SFM LLC d b a Sweeney Financial Advisors reduced its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 21.8% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 19,345 shares of the computer hardware maker's stock after selling 5,398 shares during the quarter. NVIDIA comprises approximately 2.2% of SFM LLC d b a Sweeney Financial Advisors' portfolio, making the stock its 12th biggest holding. SFM LLC d b a Sweeney Financial Advisors' holdings in NVIDIA were worth $4,418,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also made changes to their positions in the company. State Street Corp lifted its holdings in NVIDIA by 1.6% in the 2nd 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 purchasing an additional 15,897,836 shares in the last quarter. Bank of America Corp DE boosted its stake in shares of NVIDIA by 2.2% during the 2nd 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 purchasing an additional 4,165,875 shares during the last quarter. Amundi grew its holdings in shares of NVIDIA by 10.4% during the first quarter. Amundi now owns 133,768,018 shares of the computer hardware maker's stock worth $23,329,141,000 after buying an additional 12,575,177 shares in the last quarter. Deutsche Bank AG grew its holdings in shares of NVIDIA by 2.3% during 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 buying an additional 2,045,101 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of NVIDIA by 0.6% during 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 buying an additional 555,221 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company's stock.

Key NVIDIA News

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

Analysts Set New Price Targets

NVDA has been the topic of several recent analyst reports. Morgan Stanley set a $230.00 price objective on shares of NVIDIA in a research note on Friday, October 2nd. Rothschild & Co Redburn raised their target price on shares of NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. JPMorgan Chase & Co. lifted their target price on shares of NVIDIA from $280.00 to $320.00 and gave the stock an "overweight" rating in a research note on Thursday, August 27th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $350.00 target price on shares of NVIDIA in a research note on Thursday, October 1st. Finally, Weiss Ratings downgraded NVIDIA from a "buy (b+)" rating to a "buy (b)" rating in a report on Monday. Five equities research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $318.85.

Insider Buying and Selling at NVIDIA

In other news, EVP Timothy S. Teter sold 30,460 shares of the firm's stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents 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 A. Stevens sold 622,239 shares of NVIDIA stock in a transaction dated 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 directly owned 2,336,531 shares in the company, valued at $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company's stock.

NVIDIA Trading Up 2.8%

NASDAQ:NVDA traded up $5.04 during trading hours on Friday, reaching $186.64. 179,613,679 shares of the company were exchanged, compared to its average volume of 100,673,888. The firm has a market cap of $4.50 trillion, a price-to-earnings ratio of 23.60, a PEG ratio of 1.55 and a beta of 2.21. The stock has a 50 day simple moving average of $219.80 and a 200 day simple moving average of $204.53. NVIDIA Corporation has a 52-week low of $164.27 and a 52-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 announced its quarterly earnings data 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. 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%. The business's quarterly revenue was up 105.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.05 EPS. As a group, analysts predict that NVIDIA Corporation will post 9.30 EPS for the current year.

NVIDIA Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's payout ratio is 12.64%.

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

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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