Analyst firm IMS Investment Management Services Ltd. has reduced its stake in NVIDIA Corporation (NASDAQ: NVDA) by 1.3% during the second quarter of 2024. The update comes from the latest filing with the Securities and Exchange Commission (SEC), where it disclosed ownership of 216,631 shares after selling 2,905 shares in that period. This adjustment places NVIDIA as the 11th largest holding in IMS’s investment portfolio, accounting for approximately 1.2% of its total investments.
The value of IMS’s holdings in NVIDIA stood at around $34.23 million at the time of the filing. This adjustment is part of a broader trend among institutional investors, with several firms also making changes to their positions in NVIDIA during the same quarter.
Morton Brown Family Wealth LLC increased its holdings in NVIDIA by 1.5%, now owning 3,928 shares valued at approximately $621,000. Similarly, Roof Eidam Maycock Peralta LLC raised its position by 0.3% to 20,903 shares worth $3.30 million. Other notable movements include an increase of 14.7% by Copia Wealth Management, which now holds 468 shares valued at $74,000, and a 1.1% increase from BKM Wealth Management LLC, which owns 5,745 shares worth approximately $908,000. Notably, institutional and hedge fund ownership of NVIDIA has reached 65.27%.
Insider Transactions and Analyst Ratings
Recent transactions by NVIDIA insiders include a significant sale by CEO Jen Hsun Huang, who sold 75,000 shares on September 10, 2024, for an average price of $177.57, totaling approximately $13.32 million. Following this transaction, Huang retained ownership of 72,248,366 shares, valued at around $12.83 billion. Director Harvey C. Jones also sold 250,000 shares on September 18, 2024, at an average price of $176.21, amounting to $44.05 million. After this sale, Jones holds 7,183,280 shares valued at about $1.27 billion. Over the past ninety days, insiders have sold 3,251,577 shares valued at $583.14 million, while insiders currently own 4.17% of the company’s stock.
Analysts have given mixed but generally positive feedback on NVIDIA’s stock. Rothschild & Co Redburn raised its target price for NVIDIA shares from $211 to $245, maintaining a “buy” rating. Similarly, Mizuho increased its target from $235 to $245, while Susquehanna set its target at $250. Evercore ISI has a price target of $352, also rating the stock as “outperform.” In total, four analysts have rated NVIDIA with a “Strong Buy,” while forty-six have assigned a “Buy” rating, and one has rated it as a “Sell.” According to MarketBeat.com, the consensus target price for NVIDIA currently stands at $258.19.
NVIDIA’s Stock Performance and Future Outlook
As of the latest trading session, NVIDIA shares opened at $177.82, reflecting a decline of 2.6%. The company’s stock has a 50-day moving average of $186.62 and a 200-day moving average of $169.66. NVIDIA has reported a debt-to-equity ratio of 0.08, a quick ratio of 3.60, and a current ratio of 4.21. The stock has experienced a 52-week low of $86.62 and a high of $212.19, with a market capitalization of approximately $4.32 trillion.
In its most recent earnings report, NVIDIA announced earnings per share of $1.30, exceeding analysts’ expectations of $1.23 by $0.07. This marked a net margin of 52.41% and a return on equity of 101.74%. The company achieved revenue of $57.01 billion for the quarter, compared to the consensus estimate of $54.66 billion, representing a year-over-year revenue growth of 62.5%.
NVIDIA has also announced a quarterly dividend of $0.01 per share, payable on December 26, 2024, to shareholders of record by December 4, 2024. This results in an annualized dividend of $0.04, reflecting a minimal yield of 0.0%.
As NVIDIA continues to navigate the competitive landscape of graphics and computing solutions, its recent strategic decisions and analyst ratings will be closely monitored by investors and market participants.
