Disciplined Investments LLC Reduces Stake in NVIDIA Corporation (NASDAQ:NVDA)

Disciplined Investments LLC has cut its stake in NVIDIA Co. (NASDAQ:NVDA) by 36.4% as reported in its latest filing with the SEC. After selling 6,971 shares during the recent quarter, the firm now holds 12,169 shares of the renowned computer hardware maker. The value of Disciplined Investments LLC's holdings in NVIDIA is approximately $1,478,000 as of the end of the reporting period.

Additionally, other institutional investors and hedge funds have made adjustments to their positions in NVIDIA. CGC Financial Services LLC acquired a new stake in NVIDIA during the second quarter, valued at about $26,000. Similarly, Quest Partners LLC purchased shares worth approximately $27,000 in the same period. In the third quarter, Christopher J. Hasenberg Inc. bought a new position in NVIDIA worth around $27,000. The University of Texas Texas A&M Investment Management Co. acquired a new stake in the company during the second quarter, valued at about $31,000. Furthermore, FPC Investment Advisory Inc. increased its position in NVIDIA by a remarkable 900.0% during the second quarter. They now possess 290 shares, valued at $34,000 after acquiring an additional 261 shares last quarter. Institutional investors collectively own 65.27% of NVIDIA's shares.

NVIDIA Stock Performance

On Thursday, NASDAQ NVDA opened at $140.22. The company maintains a quick ratio of 3.64, a current ratio of 4.10, and a modest debt-to-equity ratio of 0.13. NVIDIA's stock has seen a 52-week low of $47.32 and a high of $152.89. The stock's fifty-day simple moving average is $139.84, while the 200-day simple moving average sits at $127.62. NVIDIA has a market capitalization of $3.43 trillion, a price-to-earnings (P/E) ratio of 55.18, a P/E/G ratio of 2.43, and a beta of 1.64.

NVIDIA recently released its quarterly earnings results on November 20th, reporting earnings per share (EPS) of $0.81, surpassing the consensus estimate of $0.69 by $0.12. The company recorded a net margin of 55.69% and a notable return on equity of 114.83%. NVIDIA reported a revenue of $35.08 billion for the quarter, exceeding analyst expectations of $33.15 billion. This marks a significant increase, with revenue up 93.6% compared to the same quarter last year. Analysts predict that NVIDIA will post an EPS of 2.78 for the current year.

The board of NVIDIA also announced a stock buyback program on August 28, which allows for the repurchase of up to $50 billion in shares. This initiative enables the company to buy back up to 1.6% of its shares through open market transactions, indicating that the board believes the stock is undervalued.

NVIDIA Dividend Declaration

NVIDIA disclosed its latest quarterly dividend, which is set to be paid on December 27th. Shareholders on record as of December 5th will receive a $0.01 dividend, leading to an annualized dividend of $0.04 and a yield of 0.03%. Currently, NVIDIA's payout ratio stands at 1.57%.

Insider Transactions at NVIDIA

In recent insider activity, CFO Colette Kress sold 66,670 shares of NVIDIA on December 13 at an average price of $135.40, totaling over $9 million. After the transaction, she holds 3,351,572 shares valued at around $453 million. This sale reflects a 1.95% decrease in her total position. Moreover, Director Tench Coxe sold 1,000,000 shares on December 16 at an average price of $131.26, an overall value of $131 million. Post-sale, he holds 28,671,360 shares worth approximately $3.76 billion, a 3.37% decrease in his position. In total, insiders have sold 1,391,886 shares valued at about $181.67 million in the past 90 days. Currently, company insiders own 4.23% of NVIDIA's stock.

Analyst Ratings and Industry Insights

Several equity research analysts have commented positively on NVIDIA shares. TD Cowen raised its target price from $165.00 to $175.00 while maintaining a “buy” rating on November 21. Similarly, Loop Capital reiterated a “buy” rating with a price target of $175.00. Stifel Nicolaus also increased its target from $165.00 to $180.00, endorsing a “buy” rating. Oppenheimer conveyed an “outperform” rating with a $175.00 price target on November 21. Additionally, William Blair initiated coverage of NVIDIA, giving it an “outperform” rating. Among the analysts, four have rated the stock as a hold, thirty-nine have issued a buy rating, and one has granted a strong buy rating. According to MarketBeat.com, NVIDIA enjoys a consensus rating of “Moderate Buy” with an average target price set at $164.15.

Learn More About NVIDIA

NVIDIA Overview

NVIDIA Corporation specializes in providing graphics and computing solutions, operating in the United States, Taiwan, China, Hong Kong, and beyond. Its Graphics segment includes GeForce GPUs for gaming, the GeForce NOW game streaming service, and enterprise solutions for graphics in addition to automotive platforms for infotainment systems and software for developing metaverse applications.

Investments, NVIDIA, Stocks