Western Financial Corp CA Sells 3,273 Shares of NVIDIA Corporation $NVDA

Key Points

• Western Financial Corp. CA cut its NVIDIA stake by 41.1% in the third quarter, selling 3,273 shares and retaining 4,696 shares valued at about $1.07 million.
• Institutional investors own 65.27% of NVIDIA, and analysts maintain 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; the company also authorized a $150 billion share buyback.

Western Financial Corp CA lessened its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 41.1% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 4,696 shares of the computer hardware maker's stock after selling 3,273 shares during the quarter. Western Financial Corp CA's holdings in NVIDIA were worth $1,072,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Montgomery Financial Services LLC purchased a new stake in shares of NVIDIA during the 2nd quarter worth $28,000. Phillip James Consulting Co. purchased a new position in NVIDIA in the first quarter valued at about $40,000. Bard Associates Inc. grew its stake in NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock valued at $54,000 after purchasing an additional 266 shares during the last quarter. Frankly Finances LLC purchased a new position in NVIDIA in the second quarter valued at about $60,000. Finally, ABS Investment Management LLC bought a new position in NVIDIA in the second quarter worth about $80,000. Institutional investors own 65.27% of the company's stock.

More 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

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Zacks Research raised shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 21st. Evercore set a $465.00 price target on shares of NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 27th. Wedbush lifted their price objective on shares of NVIDIA from $330.00 to $345.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. TD Cowen reiterated a "buy" rating on shares of NVIDIA in a research note on Tuesday, August 18th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of NVIDIA in a research report on Wednesday, August 26th. Five 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 company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $318.85.

Insider Activity

In related news, CFO Colette Kress sold 34,918 shares of NVIDIA stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This trade represents a 4.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company's stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,766,118 shares of company stock worth $399,450,353 over the last 90 days. 3.94% of the stock is currently owned by corporate insiders.

NVIDIA Stock Up 2.8%

Shares of NVDA stock opened at $186.64 on Friday. The stock's fifty day moving average price is $219.80 and its 200 day moving average price is $204.53. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $243.37. The company has a market cap of $4.50 trillion, a price-to-earnings ratio of 23.60, a price-to-earnings-growth ratio of 1.43 and a beta of 2.21. 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 released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating analysts' consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion during the quarter, compared to analysts' expectations of $92.27 billion. During the same period last year, the business posted $1.05 earnings per share. The firm's revenue was up 105.9% compared to the same quarter last year. On average, research analysts expect that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA Dividend Announcement

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

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