Alley Investment Management Company LLC Purchases New Stake in NVIDIA Co. (NASDAQ:NVDA)

Alley Investment Management Company LLC purchased a new stake in NVIDIA Co. (NASDAQ:NVDA) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 57,887 shares of the computer hardware maker’s stock, valued at approximately $7,151,000.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Diversified Investment Strategies LLC bought a new position in NVIDIA in the first quarter valued at about $357,000. Wealthcare Advisory Partners LLC grew its position in NVIDIA by 3.0% in the first quarter. Wealthcare Advisory Partners LLC now owns 40,879 shares of the computer hardware maker’s stock valued at $36,936,000 after acquiring an additional 1,204 shares during the last quarter. Stonebridge Capital Management Inc. grew its position in NVIDIA by 14.9% in the first quarter. Stonebridge Capital Management Inc. now owns 4,402 shares of the computer hardware maker’s stock valued at $3,977,000 after acquiring an additional 572 shares during the last quarter. Sandbox Financial Partners LLC grew its position in NVIDIA by 81.1% in the first quarter. Sandbox Financial Partners LLC now owns 4,167 shares of the computer hardware maker’s stock valued at $3,765,000 after acquiring an additional 1,866 shares during the last quarter. Finally, Signet Financial Management LLC grew its position in NVIDIA by 76.6% in the first quarter. Signet Financial Management LLC now owns 1,849 shares of the computer hardware maker’s stock valued at $1,671,000 after acquiring an additional 802 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently weighed in on NVDA. New Street Research upgraded NVIDIA from a “neutral” rating to a “buy” rating and set a $120.00 price target on the stock in a report on Tuesday, August 6th. Morgan Stanley restated an “overweight” rating and set a $150.00 price target on shares of NVIDIA in a report on Thursday, October 10th. UBS Group restated a “buy” rating and set a $150.00 price target on shares of NVIDIA in a report on Tuesday, October 8th. Raymond James boosted their price target on NVIDIA from $120.00 to $140.00 and gave the stock a “strong-buy” rating in a report on Thursday, August 29th. Finally, DA Davidson restated a “neutral” rating and set a $90.00 price target on shares of NVIDIA in a report on Thursday, August 29th. Five analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, NVIDIA has an average rating of “Moderate Buy” and a consensus price target of $143.07.

NVIDIA Price Performance

Shares of NASDAQ:NVDA opened at $140.52 on Tuesday. The company has a quick ratio of 3.79, a current ratio of 4.27 and a debt-to-equity ratio of 0.15. NVIDIA Co. has a twelve month low of $39.23 and a twelve month high of $144.42. The stock’s 50 day moving average is $124.46 and its 200-day moving average is $114.81. The firm has a market capitalization of $3.45 trillion, a price-to-earnings ratio of 65.91, a PEG ratio of 1.50 and a beta of 1.67.

NVIDIA (NASDAQ:NVDA) last issued its earnings results on Wednesday, August 28th. The computer hardware maker reported $0.68 earnings per share for the quarter, topping analysts’ consensus estimates of $0.64 by $0.04. NVIDIA had a return on equity of 113.50% and a net margin of 55.04%. The company had revenue of $30.04 billion for the quarter, compared to analyst estimates of $28.74 billion. During the same period in the prior year, the firm earned $0.25 earnings per share. NVIDIA’s revenue for the quarter was up 122.4% on a year-over-year basis. Sell-side analysts forecast that NVIDIA Co. will post 2.65 EPS for the current fiscal year.

NVIDIA Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 3rd. Investors of record on Thursday, September 12th were given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 0.03%. The ex-dividend date was Thursday, September 12th. NVIDIA’s payout ratio is currently 1.88%.

NVIDIA declared that its Board of Directors has initiated a share repurchase plan on Wednesday, August 28th that allows the company to repurchase $50.00 billion in shares. This repurchase authorization allows the computer hardware maker to buy up to 1.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at NVIDIA

In related news, Director Tench Coxe sold 1,000,000 shares of the stock in a transaction on Thursday, September 19th. The stock was sold at an average price of $119.27, for a total value of $119,270,000.00. Following the completion of the sale, the director now directly owns 5,852,480 shares of the company’s stock, valued at approximately $698,025,289.60. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In related news, Director Mark A. Stevens sold 155,000 shares of the stock in a transaction on Wednesday, October 9th. The stock was sold at an average price of $132.27, for a total value of $20,501,850.00. Following the completion of the sale, the director now directly owns 8,100,117 shares of the company’s stock, valued at approximately $1,071,402,475.59. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Tench Coxe sold 1,000,000 shares of the stock in a transaction on Thursday, September 19th. The shares were sold at an average price of $119.27, for a total value of $119,270,000.00. Following the completion of the sale, the director now directly owns 5,852,480 shares of the company’s stock, valued at $698,025,289.60. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 2,636,270 shares of company stock valued at $305,367,927. 4.23% of the stock is owned by insiders.

About NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.