Renaissance Technologies LLC Boosts Stake in NVIDIA Co. (NASDAQ: NVDA)

Renaissance Technologies LLC has significantly expanded its investment in NVIDIA Co. (NASDAQ: NVDA - Free Report) by an astounding 1,175.2% during the second quarter. Recent filings with the SEC revealed that the firm now holds 7,021,790 shares of the computer hardware giant, having purchased an additional 6,471,165 shares in this period. This venture reflects a growing confidence in the potential of NVIDIA's stock, which constitutes 1.5% of Renaissance Technologies' overall investment portfolio, positioning it as the firm’s third-largest holding. The value of Renaissance's stake in NVIDIA is estimated at approximately $867.49 million.

Investment Activity from Other Institutions

Several other sizeable investors have also adjusted their holdings in NVIDIA recently. Vanguard Group Inc., for instance, increased its position in NVIDIA by 4.3% during the first quarter, now owning a total of 213,335,626 shares valued at about $192.76 billion, having added 8,828,050 shares last quarter. Similarly, Bank of New York Mellon Corp made a considerable move, raising its stake in NVIDIA by 854.1% in the second quarter, bringing its ownership to 182,622,629 shares, valued at around $22.56 billion after acquiring 163,482,580 shares in the last quarter.

Dimensional Fund Advisors LP also boosted its stake in NVIDIA by 1,123.2% during the same period, resulting in ownership of 92,039,713 shares, valued at $11.37 billion after purchasing an additional 84,515,429 shares. Furthermore, Massachusetts Financial Services Co. reported an increase of 808.6% in its NVIDIA holdings, now owning 82,689,605 shares current at $10.22 billion from their previous position after buying 73,589,208 additional shares. Baillie Gifford & Co. also raised its stake by 696.6% during the second quarter, bringing their total to 82,058,614 shares, with a net worth of $10.14 billion after acquiring 71,757,065 shares.

Currently, institutional investors and hedge funds own approximately 65.27% of NVIDIA's stock.

NVIDIA Stock Performance Insights

As of the last trading day, NVIDIA stock was valued at $138.00, with a market capitalization reaching $3.39 trillion. The stock presents a P/E ratio of 64.73, a PEG ratio of 1.25, and a beta of 1.67. Its 50-day simple moving average stands at $121.88, while the 200-day average is at $112.35. Financial metrics of NVIDIA show a current ratio of 4.27, a quick ratio of 3.79, and a low debt-to-equity ratio of 0.15. Over the past year, NVIDIA's stock has fluctuated, with a low point of $39.23 and a high point of $140.89.

Earnings and Future Expectations

NVIDIA last released its earnings report on August 28, announcing earnings of $0.68 per share, which surpassed the consensus estimate of $0.64 by $0.04. Their revenue reached $30.04 billion for the quarter, significantly exceeding projections of $28.74 billion. This performance reflects a remarkable 122.4% increase in revenue compared to the same quarter of the previous year. The company reported a return on equity of 113.50% alongside a net margin of 55.04% and is projected to achieve earnings of $2.65 per share for the current fiscal year.

Share Repurchase Program

On August 28, NVIDIA’s board approved an impressive share repurchase program totaling $50 billion, allowing the company to buy back up to 1.6% of its shares through open market purchases, an indication that leadership perceives the stock as undervalued.

Dividend Decrease

NVIDIA has recently declared a quarterly dividend, which was processed on October 3. Shareholders recorded on September 12 received a dividend of $0.01 per share, representing an annualized dividend of $0.04 and a yield of 0.03%. The current payout ratio is noted at 1.88%.

Insider Activity

Additionally, there have been notable insider transactions in NVIDIA; Director Tench Coxe sold 1,000,000 shares on September 19 at an average price of $119.27, totaling about $119.27 million. Post-sale, Coxe retains 5,852,480 shares, valued at around $698.03 million. Moreover, CEO Jen Hsun Huang sold 120,000 shares on July 24 at an average price of $117.24, amounting to roughly $14.07 million. Following this transaction, Huang owns 78,054,995 shares, valued at approximately $9.15 billion. In the last ninety days, insiders have sold a total of 2,996,270 shares for about $347.73 million, and insiders now hold 4.23% of the company’s stock.

Wall Street Analyst Opinions

In terms of analyst ratings, NVIDIA has seen favorable opinions from many research firms. Raymond James raised its target price from $120.00 to $140.00, recommending a "strong-buy" rating. TD Cowen upgraded NVIDIA to a "strong-buy" rating, while Morgan Stanley reiterated an "overweight" rating with a price target set at $150.00. Truist Financial has also increased its target from $140.00 to $145.00, indicating a "buy" stance. Furthermore, Sanford C. Bernstein lifted its price target to $155.00, with an "outperform" rating. In general, NVIDIA has garnered 37 buy ratings, five hold ratings, and two strong buy ratings based on recent feedback.

NVIDIA Overview

NVIDIA Corporation specializes in graphics and computing solutions, with a strong presence in the United States, Taiwan, China, and other global markets. Its Graphics segment includes GeForce GPUs designed for gaming, the GeForce NOW game streaming service, and enterprise-level solutions like Quadro/NVIDIA RTX GPUs for workstation graphics. NVIDIA also provides automotive platforms for infotainment systems and software solutions for creating and managing projects within the metaverse.

investments, NVIDIA, SEC