Shares of NVIDIA Corporation (NASDAQ: NVDA) experienced a notable adjustment as Sheets Smith Wealth Management disclosed a 3.9% reduction in its stake during the third quarter of 2023. According to a filing with the Securities and Exchange Commission (SEC), the firm sold 3,059 shares, bringing its total holdings to 75,944 shares, valued at approximately $14.17 million.
In this context, NVIDIA now constitutes about 1.6% of Sheets Smith Wealth Management’s overall portfolio, making it the firm’s tenth largest investment. The adjustments in holdings reflect a broader trend, as various institutional investors and hedge funds reassess their positions in the technology sector.
Websterrogers Financial Advisors LLC increased its holdings in NVIDIA by 2.6% during the same quarter, acquiring an additional 54 shares to reach a total of 2,118 shares valued at $395,000. Similarly, Helen Stephens Group LLC raised its stake by 3.9%, bringing its total to 1,483 shares worth around $277,000. Other firms, including Morton Brown Family Wealth LLC and Roof Eidam Maycock Peralta LLC, also reported slight increases in their shareholdings.
Overall, hedge funds and institutional investors collectively own 65.27% of NVIDIA’s stock, underscoring the interest in this key player in the semiconductor industry.
Analyst Ratings and Market Performance
Analysts have been active in revising their forecasts for NVIDIA, with several upgrades in recent reports. BNP Paribas Exane raised its price target from $240 to $250, rating the stock as “outperform.” HSBC has set a target of $320 with a “buy” rating, while Melius Research increased its target to $320, also assigning a “buy” rating. A total of five analysts have issued a “Strong Buy” rating, while 46 have rated it as “Buy,” highlighting strong market confidence.
As of the latest trading, NVIDIA shares opened at $188.85. The stock has shown significant volatility, with a 52-week low of $86.62 and a high of $212.19. The company’s market capitalization stands at $4.59 trillion, with a price-to-earnings ratio of 46.86.
On November 19, 2023, NVIDIA reported earnings of $1.30 per share, surpassing analyst expectations of $1.23 by $0.07. The company also announced revenue of $57.01 billion for the quarter, a substantial increase of 62.5% year-over-year.
Insider Transactions and Dividend Announcement
In related news, significant insider transactions have occurred recently. Director Harvey C. Jones sold 250,000 shares on December 15, 2023, at an average price of $177.33, totaling approximately $44.33 million. Post-sale, Jones retains 6,933,280 shares, valued at around $1.23 billion. Another director, Mark A. Stevens, sold 222,500 shares on December 19, 2023, for about $40.09 million. Following these transactions, insiders have sold a total of 1,936,474 shares worth $354.36 million in the last quarter.
Additionally, NVIDIA has announced a quarterly dividend of $0.01 per share, which was paid out on December 26, 2023, to investors recorded on December 4, 2023. This dividend indicates a modest payout ratio of 0.99%.
As NVIDIA continues to navigate the competitive landscape of the semiconductor market, its strategic moves and market performance will be closely watched by investors and analysts alike.