Creekside Partners Acquires Shares in NVIDIA Co.

Creekside Partners has taken a significant step by acquiring a new position in shares of NVIDIA Co. (NASDAQ:NVDA) during the second quarter. This acquisition, as reported in their most recent 13F filing with the Securities and Exchange Commission (SEC), involved purchasing 16,047 shares of NVIDIA's stock, which is valued at approximately $1,982,000. This investment now constitutes 1.1% of Creekside Partners' overall portfolio, ranking NVIDIA as their 25th largest holding.

Institutional Investor Activity

Several other institutional investors have also made adjustments to their positions in NVIDIA recently. Among them, Vanguard Group Inc. has increased its stake in NVIDIA by 4.3% in the first quarter, now holding 213,335,626 shares valued at around $192.76 billion after an additional purchase of 8,828,050 shares. Meanwhile, Legal & General Group Plc significantly boosted its holdings by 884.0% in the second quarter, bringing its total to 213,127,959 shares valued at approximately $26.33 billion after acquiring an additional 191,469,114 shares.

Additionally, Bank of New York Mellon Corp raised its position in NVIDIA by 854.1% during the second quarter, now owning 182,622,629 shares worth about $22.56 billion after purchasing an additional 163,482,580 shares. Ameriprise Financial Inc. also raised its stake in the company, with an increase of 870.3%, bringing its total to 102,422,225 shares valued at around $12.66 billion after buying an additional 91,867,031 shares. Lastly, Dimensional Fund Advisors LP expanded its holdings by 1,123.2% in the second quarter, now owning 92,039,713 shares valued at $11.37 billion after purchasing an additional 84,515,429 shares. Overall, institutional investors control about 65.27% of NVIDIA's stock.

NVIDIA Market Performance

As of last Friday, NASDAQ NVDA opened trading at $135.40. NVIDIA has a market capitalization of approximately $3.32 trillion, with a PE ratio of 63.57 and a price-to-earnings-growth ratio of 1.40, indicating its growth potential. The company's share price has shown stability with a 50-day moving average of $125.25 and a two-hundred day moving average of $116.01. Furthermore, NVIDIA has maintained solid liquidity with a current ratio of 4.27, a quick ratio of 3.79, and a low debt-to-equity ratio of 0.15. Over the past year, the stock reached a low of $42.89 and a high of $144.42.

Earnings Reports

NVIDIA last released its quarterly earnings data on August 28th, reporting an EPS of $0.68, exceeding analysts' expectations of $0.64. The company's return on equity was notably high at 113.50%, alongside a net margin of 55.04%. For the quarter, NVIDIA reported revenues of $30.04 billion, surpassing analyst expectations of $28.74 billion and representing a year-over-year increase of 122.4%. Analysts project that NVIDIA will report an EPS of 2.65 for the current year.

Dividend Activity

The company recently declared a quarterly dividend, which was paid on October 3rd. Stockholders who were on record as of September 12th received a dividend of $0.01 per share, translating to an annualized dividend of $0.04 and a dividend yield of 0.03%. The dividend payout ratio currently stands at 1.88%.

Stock Buyback Program

In a strategic move, NVIDIA's Board of Directors announced a stock buyback program on August 28th, which authorizes the company to repurchase up to $50 billion of its outstanding shares. This indicates confidence from the company’s leadership in the stock's value, suggesting they believe the shares are undervalued.

Analyst Ratings

Research analysts have been actively issuing ratings and price targets for NVIDIA. Piper Sandler reaffirmed an "overweight" rating, setting a price target of $140.00 on August 29th. KeyCorp increased their target price from $130.00 to $180.00, maintaining an "overweight" rating. Additionally, Bank of America raised its target from $165.00 to $190.00, labeling the stock as a "buy." Morgan Stanley and UBS Group have also stated "overweight" ratings for NVIDIA, giving price targets of $150.00. With a consensus rating of "Moderate Buy," NVIDIA boasts an average price target of $143.07, according to MarketBeat's analysis.

Insider Transactions

In terms of insider activity, CEO Jen Hsun Huang sold 120,000 shares of NVIDIA on August 5th at an average price of $99.81, which amounted to approximately $11.98 million. Following this transaction, Huang retains ownership of 77,094,995 shares valued at about $7.69 billion. Furthermore, another insider, Donald F. Robertson, Jr., sold 4,500 shares on September 20th at an average price of $116.51, totaling around $524,295. Currently, insiders own about 4.23% of NVIDIA's stock, with 2,516,270 shares sold in the past quarter valued at approximately $291.8 million.

NVIDIA Overview

NVIDIA Corporation is recognized for providing state-of-the-art graphics and compute solutions, along with networking services both domestically and internationally. The company's offerings include GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service, as well as tools for gaming platforms. They also develop solutions for enterprise workstation graphics, cloud-based computing, automotive infotainment systems, and applications for the metaverse.

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