NVIDIA Corporation has seen a notable adjustment in its shareholder composition as Sheets Smith Wealth Management has reduced its stake by 3.9% during the third quarter of 2023. Following this transaction, the wealth management firm now holds 75,944 shares of the computer hardware giant, a decrease of 3,059 shares. This adjustment positions NVIDIA as approximately 1.6% of Sheets Smith’s overall portfolio, ranking it as the firm’s 10th largest investment.
According to the latest filing with the Securities and Exchange Commission (SEC), the value of Sheets Smith’s holdings in NVIDIA stands at around $14.17 million. This reduction comes amid a broader trend where various institutional investors and hedge funds have been adjusting their positions in NVIDIA.
Several firms have recently made changes to their holdings. For instance, Websterrogers Financial Advisors LLC increased its stake in NVIDIA by 2.6%, now owning 2,118 shares worth $395,000 after acquiring an additional 54 shares. Similarly, Helen Stephens Group LLC raised its position by 3.9%, bringing its total to 1,483 shares valued at $277,000.
Morton Brown Family Wealth LLC reported a 1.5% increase in its holdings, now owning 3,928 shares worth $621,000. Roof Eidam Maycock Peralta LLC also increased its stake by 0.3%, resulting in 20,903 shares valued at $3.30 million. Lastly, Alpha Wealth Funds LLC raised its holdings by 1.3%, now possessing 4,634 shares valued at $732,000. Collectively, institutional investors and hedge funds own 65.27% of NVIDIA’s stock.
Analysts have been actively discussing NVIDIA’s stock in recent reports. Notably, BNP Paribas Exane revised its price target for NVIDIA shares from $240.00 to $250.00, maintaining an “outperform” rating. HSBC set a target at $320.00 with a “buy” rating. Seaport Global Securities, however, downgraded its price estimate from $100.00 to $140.00, assigning a “sell” rating.
Melius Research has also increased its target price from $300.00 to $320.00, reiterating a “buy” rating. Meanwhile, New Street Research maintained a “buy” rating with a target price of $307.00. The consensus among analysts indicates a generally positive outlook, with five analysts rating the stock as a Strong Buy, forty-six as a Buy, two as Hold, and one as Sell. The average rating is currently categorized as “Buy,” with an average target price of $262.14.
In related news, insider transactions at NVIDIA have drawn attention. On December 15, Harvey C. Jones, a director at the company, sold 250,000 shares at an average price of $177.33, totaling $44,332,500.00. After this transaction, Jones holds 6,933,280 shares valued at approximately $1.23 billion, reflecting a 3.48% decrease in his ownership.
Similarly, director Mark A. Stevens sold 222,500 shares on December 19 at an average price of $180.17, amounting to $40,087,825.00. Following this, Stevens owns 7,621,453 shares, valued at around $1.37 billion, marking a 2.84% decrease in his stake. In total, insiders have sold 1,936,474 shares worth $354,356,742 in the last quarter, with insiders holding 4.17% of the company’s stock.
NVIDIA’s stock opened at $188.85 on the NASDAQ on Friday. The company has experienced significant volatility over the past year, recording a 52-week low of $86.62 and a high of $212.19. The firm boasts a quick ratio of 3.71, a current ratio of 4.47, and a debt-to-equity ratio of 0.06. Its market capitalization stands at $4.59 trillion, with a price-to-earnings ratio of 46.86.
In its most recent earnings report on November 19, NVIDIA exceeded expectations by posting earnings of $1.30 per share, surpassing the consensus estimate of $1.23 by $0.07. The company generated revenue of $57.01 billion for the quarter, exceeding the expected $54.66 billion. NVIDIA achieved a net margin of 53.01% and a return on equity of 99.24%, with year-over-year revenue growth of 62.5%.
Additionally, NVIDIA recently announced a quarterly dividend of $0.01 per share, paid on December 26 to investors on record as of December 4. This annualized dividend amounts to $0.04, reflecting a minimal yield.
As NVIDIA continues to navigate a dynamic market environment, analysts and investors are closely monitoring developments, particularly surrounding demand for its products and strategic initiatives. The company remains a significant player in the technology sector, and its performance will be pivotal for stakeholders in the coming months.
