Generate Investment Management Ltd Buys 266,205 Shares of NVIDIA Corporation $NVDA

Generate Investment Management Ltd raised its stake in shares of NVIDIA Corporation (NASDAQ:NVDA) by 28.0% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,215,885 shares of the computer hardware maker’s stock after purchasing an additional 266,205 shares during the period. NVIDIA accounts for 10.8% of Generate Investment Management Ltd’s portfolio, making the stock its largest position. Generate Investment Management Ltd’s holdings in NVIDIA were worth $277,684,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of NVDA. Montgomery Financial Services LLC acquired a new stake in NVIDIA in the second quarter worth about $28,000. Phillip James Consulting Co. bought a new stake in NVIDIA in the first quarter valued at $40,000. Bard Associates Inc. boosted its stake in shares of NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after buying an additional 266 shares during the last quarter. Frankly Finances LLC bought a new position in NVIDIA in the 2nd quarter worth about $60,000. Finally, ABS Investment Management LLC purchased a new position in NVIDIA in the 2nd quarter worth $80,000. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Stock Up 2.8%

Shares of NASDAQ:NVDA opened at $186.64 on Friday. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $243.37. The business’s 50 day moving average is $219.80 and its 200 day moving average is $204.53. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock has a market cap of $4.50 trillion, a price-to-earnings ratio of 23.60, a PEG ratio of 1.55 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The company had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. NVIDIA’s revenue was up 105.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.05 EPS. On average, sell-side analysts forecast that NVIDIA Corporation will post 9.30 earnings per share for the current fiscal year.

NVIDIA announced that its board has authorized a stock repurchase program on Monday, September 28th that allows the company to repurchase $150 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to buy up to 2.8% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

NVIDIA Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Some investors see the decline as a buying opportunity, citing NVIDIA’s strong AI-chip position and profitability. ARK Invest also reportedly added $45.9 million of NVDA shares during the sell-off. Nvidia Stock Rises on Dip-Buying: 3 Reasons to Be Optimistic
• Positive Sentiment: CEO Jensen Huang says the next-generation Vera Rubin platform could generate more revenue per gigawatt of data-center capacity than the current platform, supporting the case for continued growth. Jensen Huang Says Nvidia’s Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt
• Neutral Sentiment: NVIDIA’s upcoming Nov. 17 results are a key near-term catalyst: investors will look for evidence that demand and guidance can ease fears about AI spending and justify the stock’s recovery. Nvidia Investors Need to Be Paying Attention on Nov. 17
• Negative Sentiment: The rebound follows a steep sell-off that wiped roughly $450 billion from NVIDIA’s market value. Investors are worried that a Democratic-led Congress, data-center permitting or regulatory hurdles, high capital costs, and uncertain returns could delay infrastructure projects and weaken future chip demand. AI stocks hammered by midterm shock as data center buildout becomes a ‘war of attrition’
• Negative Sentiment: Reports that NVIDIA may be taking on greater exposure to financially strained “neocloud” customers raise concern that it could face risks beyond selling chips if those providers struggle to fund data centers. As neoclouds face a financial reckoning, Nvidia has to decide how far to go to help

Insiders Place Their Bets

In other news, CFO Colette Kress sold 34,918 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This represents a 4.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last 90 days. 3.94% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Royal Bank Of Canada upped their price objective on NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Sanford C. Bernstein reiterated a “buy” rating on shares of NVIDIA in a research note on Monday, September 21st. Mizuho set a $315.00 price target on NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a report on Thursday, October 1st. Finally, KeyCorp reissued an “overweight” rating and set a $330.00 price target on shares of NVIDIA in a research report on Monday, August 24th. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, NVIDIA presently has a consensus rating of “Buy” and a consensus price target of $318.85.

NVIDIA Profile

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.

NVIDIA’s offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.