Talbot Financial LLC Buys 25,049 Shares of NVIDIA Corporation $NVDA

Key Points

• Talbot Financial increased its NVIDIA stake 7.2%, buying 25,049 shares to hold 372,503 shares valued at about $85.1 million; the stock is its third-largest portfolio holding.
• NVIDIA reported quarterly earnings and revenue above analyst expectations, with revenue up 105.9% year over year. The company also authorized a $150 billion share repurchase plan.
• Shares recently traded down 2.0% to $162.85, while analyst views were mixed; MarketBeat reported a “Moderate Buy” consensus rating and an average price target of $277.89.

Talbot Financial LLC increased its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.2% in the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 372,503 shares of the computer hardware maker's stock after acquiring an additional 25,049 shares during the quarter. NVIDIA comprises 6.1% of Talbot Financial LLC's investment portfolio, making the stock its 3rd largest holding. Talbot Financial LLC's holdings in NVIDIA were worth $85,072,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of NVDA. Prairie Advisory LLC lifted its holdings in NVIDIA by 92.6% during the 3rd quarter. Prairie Advisory LLC now owns 23,634 shares of the computer hardware maker's stock worth $5,398,000 after purchasing an additional 11,364 shares in the last quarter. Capital Square LLC bought a new position in NVIDIA in the 3rd quarter worth about $3,123,000. OceanIQ Capital LLC grew its stake in NVIDIA by 2.0% during the third quarter. OceanIQ Capital LLC now owns 237,830 shares of the computer hardware maker's stock valued at $54,349,000 after acquiring an additional 4,555 shares in the last quarter. Independent Wealth Network Inc. grew its position in shares of NVIDIA by 5.6% during the 3rd quarter. Independent Wealth Network Inc. now owns 29,543 shares of the computer hardware maker's stock valued at $6,747,000 after purchasing an additional 1,556 shares in the last quarter. Finally, Arkfeld Wealth Strategies L.L.C. purchased a new position in NVIDIA during the third quarter worth about $4,727,000. Institutional investors own 65.27% of the company's stock.

NVIDIA Trading Down 2.0%

NASDAQ NVDA traded down $3.34 on Friday, hitting $162.85. The company's stock had a trading volume of 363,372,273 shares, compared to its average volume of 196,617,360. The firm has a market cap of $3.92 trillion, a P/E ratio of 20.59, a PEG ratio of 1.28 and a beta of 2.21. The company's 50-day simple moving average is $214.64 and its 200 day simple moving average is $204.12. NVIDIA Corporation has a 52-week low of $148.80 and a 52-week high of $243.37. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings data 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 business had revenue of $96.22 billion for the quarter, compared to analysts' expectations of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business's revenue was up 105.9% on a year-over-year basis. During the same period in the previous year, the firm posted $1.05 EPS. Research analysts predict that NVIDIA Corporation will post 9.29 EPS for the current fiscal year.

NVIDIA Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Thursday, September 10th. NVIDIA's dividend payout ratio (DPR) is presently 12.64%.

NVIDIA declared that its board has initiated a stock repurchase plan on Monday, September 28th that allows the company to buy back $150 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Share repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, Director Mark A. Stevens sold 622,239 shares of the company's 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 transaction, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company's stock.

Analyst Ratings Changes

NVDA has been the topic of several research reports. Daiwa Securities Group lowered their price objective on shares of NVIDIA from $255.00 to $245.00 and set an "outperform" rating on the stock in a research report on Thursday, September 17th. Deutsche Bank reiterated a "buy" rating on shares of NVIDIA in a research report on Monday, August 31st. Craig Hallum cut NVIDIA from a "buy" rating to a "hold" rating and set a $180.00 target price on the stock. in a research note on Thursday. KeyCorp lowered NVIDIA from an "overweight" rating to a "sector weight" rating in a research report on Thursday. Finally, Stifel Nicolaus set a $205.00 target price on shares of NVIDIA and gave the stock a "buy" rating in a research report on Thursday. Five analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat, NVIDIA currently has a consensus rating of "Moderate Buy" and an average price target of $277.89.

Key Headlines Impacting NVIDIA

Here are a few of the latest headlines about NVDA:

• Positive Sentiment: Despite cutting its price target to $300, Rosenblatt Securities maintained a Buy rating; other coverage also points to continued investor optimism about NVIDIA’s long-term growth potential. Rosenblatt Securities rating
• 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: 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

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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