Paragon Advisors LLC Holds $8.89 Million in NVIDIA Co. (NASDAQ:NVDA)

Paragon Advisors LLC has reduced its investment in NVIDIA Co. (NASDAQ:NVDA) by 17.7% during the fourth quarter, as indicated in its recent filing with the Securities and Exchange Commission (SEC). Following the sale of 14,234 shares during the quarter, the firm now holds a total of 66,201 shares of NVIDIA, which amounts to approximately $8.89 million, making this stock the eighth largest in its portfolio, accounting for 3.0% of their overall investments.

In addition to Paragon Advisors' adjustments, several other institutional investors have also modified their stakes in NVIDIA. For instance, University of Texas Texas AM Investment Management Co. significantly increased its holdings by a staggering 897.5% during the second quarter, now owning 119,110 shares valued at $14.72 million after acquiring an additional 107,169 shares. Truepoint Inc. also raised its position in NVIDIA by 914.1%, ending up with 12,990 shares valued at $1.61 million after buying 11,709 extra shares. Other entities like Westwood Holdings Group Inc. and Palisade Asset Management LLC also increased their stakes, with 238,829 shares ($29.51 million) and 15,363 shares ($1.87 million) respectively. Overall, 65.27% of NVIDIA's stock is owned by institutional investors.

NVIDIA's Recent Stock Performance

NVIDIA shares recently opened at $118.48. The company displays a strong financial position with a quick ratio of 3.64 and a current ratio of 4.10, alongside a low debt-to-equity ratio of 0.13. Over the past year, NVIDIA has experienced fluctuations, with a low of $60.70 and a peak of $153.13. The market capitalization stands at $2.90 trillion, featuring a price-to-earnings ratio of 46.63 and a P/E/G ratio of 2.65, with a beta of 1.64. NVIDIA's 50-day and 200-day simple moving averages are $138.72 and $129.52 respectively.

NVIDIA reported its quarterly earnings on November 20th, revealing earnings of $0.81 per share, which exceeded expectations of $0.69. This reflects a return on equity of 114.83% and a net margin of 55.69%. With revenues reaching $35.08 billion for the quarter — significantly higher than the forecast of $33.15 billion — the company noted a 93.6% increase in revenue year over year. Analysts predict that NVIDIA will achieve an EPS of 2.78 for the current year.

Dividend and Insider Activity

NVIDIA declared a quarterly dividend of $0.01, payable on December 27th, with an annualized dividend yield of 0.03%. The company's dividend payout ratio is notably low at 1.57%, indicating a conservative approach to returning capital to shareholders.

In related transactions, insider Donald F. Robertson, Jr. sold 4,500 shares at an average price of $135.28, totaling about $608,760. Following this sale, he retains 480,899 shares valued at approximately $65.06 million, reflecting a minor decrease in his stake. Additionally, Director Tench Coxe sold a considerable 1,000,000 shares for $131.26 each, amounting to a total of $131.26 million. Following this major transaction, he owns 28,671,360 shares valued at roughly $3.76 billion, also representing a decrease. Over the last three months, insiders have sold 1,108,348 shares worth $146.51 million, while corporate insiders hold 4.23% of the company’s stock.

Analysts' Views on NVIDIA

Analysts have been bullish on NVIDIA's stock, with Wedbush raising their target from $160 to $175 and maintaining an “outperform” rating. Cantor Fitzgerald has an “overweight” rating, placing a $200 target on the shares. Similarly, the Goldman Sachs Group raised its price target from $150 to $165 with a “buy” rating, while UBS Group has a new target of $185. Barclays also increased its price target to $175, with general sentiments suggesting a robust outlook for the company. Analysts are largely optimistic, with an average rating of “Moderate Buy” and a consensus target price of $165.23.

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