NVIDIA Corporation $NVDA Stock: Steel Grove Capital Advisors LLC Reduces Stake

Key Points

• Steel Grove Capital trimmed its NVIDIA stake by 0.6% in the third quarter, selling 2,779 shares; it still held 465,254 shares worth about $106.3 million, making NVIDIA its fourth-largest position.
• Analyst sentiment remains broadly positive: 48 analysts rate the stock Buy and five Strong Buy, with an average price target of $318.85. Executives and directors also sold shares recently, including insider sales totaling about $399.5 million over 90 days.
• NVIDIA beat quarterly earnings and revenue estimates, with revenue up 105.9% year over year, and authorized a $150 billion share repurchase plan.

Steel Grove Capital Advisors LLC reduced its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 0.6% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 465,254 shares of the computer hardware maker's stock after selling 2,779 shares during the quarter. NVIDIA comprises approximately 6.9% of Steel Grove Capital Advisors LLC's holdings, making the stock its 4th largest position. Steel Grove Capital Advisors LLC's holdings in NVIDIA were worth $106,255,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the stock. Boyd Wealth Management LLC increased its holdings 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 purchasing an additional 6,696 shares during the last quarter. Ally Financial Inc. lifted its position in shares of NVIDIA by 10.3% in the second quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker's stock worth $34,415,000 after buying an additional 16,000 shares in the last quarter. Altshuler Shaham Ltd boosted its stake in NVIDIA by 6,451.9% during the first quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker's stock valued at $111,134,000 after buying an additional 627,510 shares during the last quarter. Vanguard Capital Wealth Advisors boosted its stake in NVIDIA by 5.6% during the second quarter. Vanguard Capital Wealth Advisors now owns 52,163 shares of the computer hardware maker's stock valued at $10,437,000 after buying an additional 2,758 shares during the last quarter. Finally, Baker Tilly Wealth Management LLC boosted its stake in NVIDIA by 7.4% during the second quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker's stock valued at $14,386,000 after buying an additional 4,958 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction that occurred on 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 completion of the transaction, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. The trade was a 1.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 that occurred 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 transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. Insiders own 3.94% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on NVDA. Mizuho set a $315.00 price target on NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. Wall Street Zen cut NVIDIA from a "strong-buy" rating to a "buy" rating in a report on Saturday, October 24th. Raymond James Financial set a $515.00 price objective on NVIDIA and gave the stock a "strong-buy" rating in a report on Thursday, August 27th. Rothschild & Co Redburn increased their target price on NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Finally, Morgan Stanley set a $230.00 target price on NVIDIA in a research report on Friday, October 2nd. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, NVIDIA presently has an average rating of "Buy" and a consensus price target of $318.85.

NVIDIA Stock Up 2.3%

Shares of NASDAQ NVDA opened at $206.65 on Wednesday. The firm's 50-day moving average price is $221.45 and its 200-day moving average price is $204.44. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $4.98 trillion, a price-to-earnings ratio of 26.13, a P/E/G ratio of 1.55 and a beta of 2.21. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $243.37.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The company had revenue of $96.22 billion during 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%. The firm's revenue was up 105.9% on a year-over-year basis. During the same quarter last year, the business posted $1.05 earnings per share. On average, equities research analysts anticipate that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a stock buyback plan 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 buy up to 2.8% of its shares through open market purchases. Share repurchase plans are often an indication that the company's board believes its shares are undervalued.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's dividend payout ratio (DPR) is presently 12.64%.

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: The sector recovery helped NVIDIA rebound after four consecutive losing sessions. Some coverage also described the recent pullback as a potential buying opportunity, citing the company’s strong revenue growth and continued demand for AI chips. Nvidia stock up over 3%: what's driving Tuesday's rally?
• Positive Sentiment: NVIDIA’s proposed DSX POD modular design aims to shorten AI-factory deployment to 14 days. Faster installation could let customers put GPUs to work and generate returns sooner, potentially supporting infrastructure demand. Nvidia's New 14-Day AI Deployment Goal Could Unlock Faster Growth
• Neutral Sentiment: Reports say NVIDIA is asking cloud and data-center partners to ensure at least 51% of services sales come from customers outside China, in response to U.S. export rules. The move may help partners comply, but the reports do not quantify the effect on NVIDIA’s sales. What Is Nvidia Asking Cloud Clients To Change Under New China Rules?
• Negative Sentiment: Broader worries about the AI trade remain a headwind: reports point to a substantial recent decline in AI-stock valuations and hedge funds reducing exposure. A warning that Chinese AI-chip competitors could expand overseas adds to uncertainty ahead of NVIDIA’s November 17 earnings report. AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI

NVIDIA Profile

NVIDIA Corporation NASDAQ: NVDA is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company's products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.

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