Sheets Smith Wealth Management Cuts Position in NVIDIA Corporation $NVDA

Key Points

• Sheets Smith Wealth Management reduced its position in NVIDIA Corporation by 4.3%, owning 79,003 shares valued at approximately $12.48 million by the end of the second quarter.
• NVIDIA reported a net margin of 52.41% and earnings per share (EPS) of $1.05, surpassing analysts' predictions and marking a 55.6% year-over-year revenue growth.
• Insider activity saw significant sales, with Director Persis Drell and another director selling shares worth over $68 million collectively, indicating a notable decrease in their ownership stakes.

Sheets Smith Wealth Management decreased its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 4.3% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 79,003 shares of the computer hardware maker's stock after selling 3,535 shares during the quarter. NVIDIA accounts for approximately 1.5% of Sheets Smith Wealth Management's portfolio, making the stock its 13th largest position. Sheets Smith Wealth Management's holdings in NVIDIA were worth $12,482,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Pachira Investments Inc. increased its holdings in NVIDIA by 1.0% in the second quarter. Pachira Investments Inc. now owns 6,450 shares of the computer hardware maker's stock valued at $1,019,000 after buying an additional 63 shares during the last quarter. HFG Wealth Management LLC grew its holdings in shares of NVIDIA by 3.4% during the second quarter. HFG Wealth Management LLC now owns 2,075 shares of the computer hardware maker's stock worth $328,000 after purchasing an additional 68 shares during the last quarter. Hidden Cove Wealth Management LLC grew its holdings in shares of NVIDIA by 0.3% during the second quarter. Hidden Cove Wealth Management LLC now owns 23,778 shares of the computer hardware maker's stock worth $3,757,000 after purchasing an additional 69 shares during the last quarter. Burkett Financial Services LLC grew its holdings in shares of NVIDIA by 1.3% during the second quarter. Burkett Financial Services LLC now owns 5,450 shares of the computer hardware maker's stock worth $861,000 after purchasing an additional 70 shares during the last quarter. Finally, Guided Capital Wealth Management LLC grew its holdings in shares of NVIDIA by 0.3% during the second quarter. Guided Capital Wealth Management LLC now owns 27,858 shares of the computer hardware maker's stock worth $4,401,000 after purchasing an additional 70 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA Price Performance

NVDA stock opened at $187.62 on Friday. The firm has a 50 day moving average of $178.11 and a 200-day moving average of $148.15. NVIDIA Corporation has a 12-month low of $86.62 and a 12-month high of $191.05. The company has a current ratio of 4.21, a quick ratio of 3.60 and a debt-to-equity ratio of 0.08. The company has a market cap of $4.56 trillion, a price-to-earnings ratio of 53.45, a PEG ratio of 1.37 and a beta of 2.12.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 27th. The computer hardware maker reported $1.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.04. NVIDIA had a net margin of 52.41% and a return on equity of 101.74%. The company had revenue of $46.74 billion during the quarter, compared to the consensus estimate of $45.65 billion. During the same period last year, the firm earned $0.68 EPS. The company's revenue for the quarter was up 55.6% on a year-over-year basis. NVIDIA has set its Q3 2026 guidance at EPS. As a group, equities analysts expect that NVIDIA Corporation will post 2.77 EPS for the current fiscal year.

NVIDIA Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 2nd. Stockholders of record on Thursday, September 11th were given a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. The ex-dividend date was Thursday, September 11th. NVIDIA's dividend payout ratio (DPR) is presently 1.14%.

Insider Activity at NVIDIA

In other news, Director Persis Drell sold 40,000 shares of NVIDIA stock in a transaction that occurred on Friday, September 19th. The shares were sold at an average price of $177.65, for a total transaction of $7,106,000.00. Following the completion of the sale, the director directly owned 138,740 shares in the company, valued at approximately $24,647,161. This trade represents a 22.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark A. Stevens sold 350,000 shares of the firm's stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $176.39, for a total transaction of $61,736,500.00. Following the transaction, the director directly owned 7,399,803 shares of the company's stock, valued at approximately $1,305,251,251.17. This trade represents a 4.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 4,097,407 shares of company stock valued at $714,378,504 in the last 90 days. Insiders own 4.17% of the company's stock.

Analyst Ratings Changes

Several brokerages have issued reports on NVDA. Barclays reaffirmed an "overweight" rating and set a $240.00 price objective (up previously from $200.00) on shares of NVIDIA in a report on Monday, September 22nd. TD Cowen raised their price objective on NVIDIA from $140.00 to $235.00 and gave the stock a "buy" rating in a report on Tuesday, August 19th. Morgan Stanley raised their price objective on NVIDIA from $206.00 to $210.00 and gave the stock an "overweight" rating in a report on Thursday, August 28th. Craig Hallum raised their price objective on NVIDIA from $195.00 to $245.00 and gave the stock a "buy" rating in a report on Thursday, August 28th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $225.00 price objective (up previously from $200.00) on shares of NVIDIA in a report on Thursday, August 28th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $211.00.

NVIDIA Profile

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.

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