Creekside Partners Takes New Stake in NVIDIA Co. (NASDAQ:NVDA)

Creekside Partners has recently acquired a new stake in NVIDIA Co. (NASDAQ:NVDA - Free Report) during the second quarter of the year. This acquisition was detailed in the firm’s latest 13F filing with the Securities and Exchange Commission (SEC). Creekside Partners purchased 16,047 shares of the leading computer hardware manufacturer, which are currently valued at around $1,982,000. Within Creekside Partners' portfolio, NVIDIA now makes up 1.1% of their total investments, positioning it as their 25th largest holding.

Other Institutional Investors Adjust Their Stakes

In addition to Creekside Partners, several institutional investors have also made adjustments to their holdings in NVIDIA. Vanguard Group Inc. increased its stake by 4.3% in the first quarter, owning 213,335,626 shares worth approximately $192.76 billion after acquiring an additional 8,828,050 shares. Meanwhile, Legal & General Group Plc significantly grew its investment in NVIDIA, amplifying its stake by an impressive 884.0% in the second quarter. They now possess 213,127,959 shares valued at about $26.33 billion after adding 191,469,114 shares.

Bank of New York Mellon Corp also increased its holdings by 854.1% in the same quarter, owning 182,622,629 shares valued at $22.56 billion following the acquisition of an additional 163,482,580 shares. Furthermore, Ameriprise Financial Inc. raised its stake by 870.3%, now holding 102,422,225 shares valued at $12.66 billion after purchasing 91,867,031 more shares. Additionally, Dimensional Fund Advisors LP amplified their holdings by 1,123.2%, owning 92,039,713 shares worth around $11.37 billion after buying 84,515,429 shares.

Overall, institutional investors now own about 65.27% of NVIDIA's stock.

NVIDIA's Stock Performance

As of the last trading session, NVIDIA’s stock opened at $135.40. The company has a substantial market capitalization of $3.32 trillion, with a price-to-earnings (PE) ratio of 63.57 and a price-to-earnings-growth (PEG) ratio of 1.40. The firm's beta stands at 1.66, reflecting its volatility compared to the market. NVIDIA has a current ratio of 4.27, a quick ratio of 3.79, and a commendable debt-to-equity ratio of 0.15, indicating strong financial health. The stock has seen a 12-month low of $42.89 and a 12-month high of $144.42.

Recent Earnings and Dividend Announcement

NVIDIA reported its latest quarterly earnings on August 28th. The company posted an earnings per share (EPS) of $0.68, surpassing analysts' expectations, which were set at $0.64. NVIDIA's return on equity stands at 113.50% with a net margin of 55.04%. The reported revenue for the quarter reached $30.04 billion, exceeding analyst estimates of $28.74 billion and showing a remarkable year-over-year revenue growth of 122.4%.

Regarding dividends, NVIDIA recently declared a quarterly dividend of $0.01 per share, which was paid out on October 3rd. This translates to an annualized dividend rate of $0.04, resulting in a dividend yield of 0.03%. The dividend payout ratio for NVIDIA is currently at 1.88%.

Stock Buyback Program Initiated

On August 28th, NVIDIA's Board of Directors announced a stock buyback program, approving the buyback of up to $50 billion in outstanding shares. This program indicates that the company's leadership believes their shares may indeed be undervalued at present.

Analyst Ratings

Moreover, Morgan Stanley confirmed an “overweight” rating with a price target of $150.00 on October 10th, while UBS Group reiterated a “buy” rating with a similar price target of $150.00 on October 8th. In the landscape of research analysts, five rated NVIDIA as a hold, thirty-seven as a buy, and two as a strong buy, leading to a consensus rating of “Moderate Buy” and an average price target set at $143.07.

Executive Insider Transactions

An update on insider trading indicates that NVIDIA CEO Jen Hsun Huang sold 120,000 shares at an average price of $99.81, totaling approximately $11.98 million. After this transaction, he retained ownership of 77,094,995 shares, worth about $7.69 billion, reflecting no significant change in his holdings.

In another transaction, insider Donald F. Robertson, Jr. sold 4,500 shares at an average price of $116.51, totaling about $524,295. Following this, he held 492,409 shares valued approximately at $57.37 million. Insiders collectively sold a significant number of shares, valued at $291.80 million over the past quarter, and currently, insiders own 4.23% of the company’s stock.

NVIDIA Company Overview

NVIDIA Corporation is at the forefront of providing graphics, compute, and networking solutions globally, with operations spanning the United States, Taiwan, China, Hong Kong, and more countries. Their Graphics segment produces GeForce GPUs for gaming and personal computing, alongside offering various other technologies for gaming platforms, enterprise, automotive, and exciting new areas like the metaverse.

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