Vanguard Group Inc Increases Holdings in NVIDIA Corporation

Published March 17, 2024

Vanguard Group Inc has recently expanded its investment in NVIDIA Corporation (NASDAQ:NVDA), enhancing its stock position by 1.1% during the third quarter, as reported in the latest filings with the SEC. Vanguard now holds a notable 203,680,199 shares in the tech giant after acquiring an additional 2,287,471 shares within the quarter. NVIDIA's stock represents about 2.2% of Vanguard's total portfolio, making it the fourth-largest holding in its lineup. By the end of the reporting period, Vanguard Group Inc's stake in NVIDIA was valued at approximately $88.6 billion, indicating a substantial ownership of around 8.25% of the company.

Other Significant Investors Making Moves

Other institutional investors and hedge funds have been actively adjusting their positions in NVIDIA as well. Moody Lynn & Lieberson LLC boosted their holdings by 7.2%, resulting in ownership of 89,053 shares valued at about $38.7 million. Affinity Capital Advisors LLC took a new position with NVIDIA stock valued at $282,000. River Street Advisors LLC and Truepoint Inc. also increased their stakes by 3.8% and a remarkable 259.9%, respectively. Main Street Research LLC notably grew its investment by 1,216.3%, currently holding 50,941 shares with a value of $22.2 million. Collectively, institutional investors own 64.79% of NVIDIA's stock.

NVIDIA's Market Performance

NVIDIA's stock has shown considerable movement in the market, with shares opening at $878.37 on a recent Friday. The 50-day moving average stood at $706.74, with the 200-day moving average at $547.32. The company boasts a market capitalization of $2.20 trillion, a P/E ratio of 73.56, a P/E/G ratio of 1.40, and a beta of 1.73. The company's debt-to-equity ratio is 0.20, with a quick ratio of 3.67 and a current ratio of 4.17. NVIDIA saw its 52-week price range stretch from $238.94 to $974.00.

NVIDIA reported a solid quarterly earnings outcome, with $5.16 earnings per share (EPS), surpassing the consensus estimate of $4.21 by $0.95. The revenue for the quarter was also impressive at $22.10 billion, exceeding expectations of $20.40 billion. This corresponds to a strong 265.3% year-over-year growth. Analysts project NVIDIA will post 21.77 earnings per share for the current fiscal year.

Dividends and Analyst Outlook

Furthermore, NVIDIA announced a quarterly dividend, scheduled to be paid on March 27th to shareholders recorded on March 6th, translating to a $0.16 annualized dividend and a 0.02% yield. The ex-dividend date is set for March 5th, with a current dividend payout ratio (DPR) of 1.34%. Analyst opinions on NVIDIA are positive, with Jefferies Financial Group, Bank of America, Piper Sandler Companies, Argus, and Sanford C. Bernstein setting high price objectives, ranging from $780 to $1,000, and generally giving the stock buy ratings. The consensus among analysts is a 'Moderate Buy' with an average price target of $829.66.

Insider Activity at NVIDIA

Insiders at NVIDIA have been actively trading company stock. Significant sales include transactions by Director Mark A. Stevens, who sold 35,648 shares, and insider Donald F. Robertson, Jr., who sold 450 shares. These activities are thoughtfully documented, and insiders currently hold 3.99% of NVIDIA's stock.

NVIDIA Corporation continues to be a leader in providing graphics and computing solutions across various global regions. Their Graphics segment powers gaming and professional platforms, cloud-based computing solutions, and advanced automotive infotainment systems. The company also ventures into metaverse and 3D internet applications with Omniverse software.

NVIDIA, Vanguard, Investment