Aljian Capital Management Raises Stake in NVIDIA Corporation

Aljian Capital Management LLC has increased its stake in NVIDIA Co. (NASDAQ:NVDA) by 7.4% during the third quarter, as reported in its latest filing with the Securities and Exchange Commission (SEC). After acquiring an additional 20,580 shares in the quarter, the institutional investor now holds 299,106 shares of the leading computer hardware manufacturer. NVIDIA represents approximately 8.5% of Aljian Capital's investment portfolio, making it the fourth largest holding for the firm. As of the end of the recent reporting period, Aljian Capital Management's holdings in NVIDIA were valued at $36,323,000.

Other significant investors have similarly adjusted their positions in NVIDIA. Legal & General Group Plc dramatically increased its holdings by 884% in the second quarter, now owning 213,127,959 shares worth approximately $26.33 billion, following a purchase of 191,469,114 additional shares. Additionally, Bank of New York Mellon Corp boosted its stake by 854.1%, accumulating 182,622,629 shares valued at around $22.56 billion, after adding 163,482,580 shares. Ameriprise Financial Inc. raised its position by 870.3%, gaining ownership of 102,422,225 shares valued at $12.66 billion. Similarly, Dimensional Fund Advisors LP increased its stake by 1,123.2% and now holds 92,039,713 shares worth about $11.37 billion after acquiring an additional 84,515,429 shares. Massachusetts Financial Services Co. MA also raised its shareholding by 808.6%, now owning 82,689,605 shares valued at approximately $10.22 billion after adding 73,589,208 shares.

Overall, hedge funds and institutional investors hold about 65.27% of NVIDIA's shares.

Recent Insider Transactions

In insider news, Director John Dabiri recently sold 716 shares of NVIDIA stock in a transaction dated November 25. The shares were sold at an average price of $142.00, resulting in a total of $101,672. After this transaction, he retains 19,942 shares in the company, valued at $2.83 million. This sale reflects a 3.47% decrease in his ownership. The details of this transaction were disclosed in a filing with the SEC. Moreover, CEO Jen Hsun Huang sold 120,000 shares on September 9 for an average price of $105.33, amounting to a total of $12.64 million. Following this sale, he continues to hold 75,895,836 shares valued at approximately $7.99 billion. In the past ninety days, corporate insiders have sold a total of 1,796,986 shares worth around $214.42 million, with insiders currently owning 4.23% of the stock.

NVIDIA Stock Performance

As of Thursday, NASDAQ:NVDA opened at $145.14. Over the past year, NVIDIA has seen a low of $45.27 and a high of $152.89. The company's 50-day moving average stands at $137.32, and its 200-day moving average is at $124.90. NVIDIA boasts a market capitalization of $3.55 trillion, a PE ratio of 57.12, and a price-to-earnings-growth ratio of 2.51, along with a beta value of 1.63. The company maintains a debt-to-equity ratio of 0.13, while its current ratio is at 4.10, and the quick ratio is at 3.64.

NVIDIA recently reported quarterly earnings on November 20. The company posted earnings per share of $0.81, exceeding analysts' predictions of $0.69 by $0.12. The reported revenue for the quarter was $35.08 billion, compared to anticipated figures of $33.15 billion. NVIDIA's net margin stands at 55.69%, and it boasts a remarkable return on equity of 114.83%. Revenue for the quarter rose by 93.6% compared to the same quarter last year, when the firm reported earnings per share of $0.38. Analysts predict that NVIDIA will post an EPS of 2.76 for the current fiscal year.

The company has also announced a stock buyback program authorized by its Board of Directors on August 28, allowing for the repurchase of up to $50 billion in outstanding shares. This buyback strategy suggests management believes its shares are undervalued.

Dividend Announcement from NVIDIA

NVIDIA recently declared a quarterly dividend, set to be paid on December 27. Shareholders on record as of December 5 will receive a dividend of $0.01. The ex-dividend date is December 5. This translates to an annual dividend of $0.04, with a yield of 0.03%. Currently, NVIDIA’s dividend payout ratio is at 1.57%.

Analyst Ratings and Insights

Numerous research firms have updated their perspectives on NVIDIA. On November 12, Redburn Atlantic initiated coverage, rating it as “buy” and setting a price target of $178. Bank of America reinforced a “buy” rating with a price target of $190 on November 21. Stifel Nicolaus raised its price target from $165 to $180, also maintaining a “buy” rating on November 19. Also, Susquehanna increased its price target from $160 to $180, rating the stock positively on November 14. Lastly, HSBC lifted its price target to $200, rating NVIDIA as a “buy” on the same date. Overall, four analysts provide hold ratings, while thirty-nine analysts recommend buying, with one assigning a strong buy rating. As per MarketBeat, NVIDIA has an average rating of “Moderate Buy” and an average price target of $164.15.

Get the Latest Insights on NVIDIA

Company Overview

NVIDIA Corporation specializes in graphics, compute, and networking solutions, serving customers in the United States, Taiwan, China, Hong Kong, and globally. The Graphics segment provides GeForce GPUs targeted at gaming and personal computers, the GeForce NOW game streaming service, and the related infrastructure for gaming platforms. They also produce Quadro/NVIDIA RTX GPUs for enterprise workstations, virtual GPU software for cloud-based visual and virtual computing, automotive platforms for infotainment systems, and software for metaverse and 3D internet applications.

NVIDIA, Investment, Stake