Sheets Smith Wealth Management has reduced its holdings in NVIDIA Corporation (NASDAQ: NVDA) by 3.9% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the firm now owns 75,944 shares after selling 3,059 shares during this period. This adjustment means NVIDIA makes up approximately 1.6% of Sheets Smith’s total portfolio, ranking as the fund’s 10th largest position. As of the latest filing, the value of Sheets Smith’s holdings in NVIDIA stands at about $14.17 million.
The adjustments in Sheets Smith’s portfolio reflect broader activity among institutional investors concerning NVIDIA shares. For instance, Websterrogers Financial Advisors LLC increased its stake in NVIDIA by 2.6%, now holding 2,118 shares valued at $395,000. Similarly, Helen Stephens Group LLC also raised its investment by 3.9%, owning 1,483 shares worth $277,000 after acquiring 56 additional shares.
Other notable changes include Morton Brown Family Wealth LLC, which boosted its holdings by 1.5%, and Roof Eidam Maycock Peralta LLC, which increased its stake by 0.3%. Collectively, institutional investors and hedge funds now control 65.27% of NVIDIA’s stock.
Analyst Ratings and Market Activity
Recent analyst reports reflect a positive outlook for NVIDIA. BNP Paribas Exane raised its price target from $240.00 to $250.00, assigning an “outperform” rating on November 18, 2023. Meanwhile, HSBC set a price target of $320.00 with a “buy” rating. Seaport Global Securities increased its price objective from $100.00 to $140.00, though it maintained a “sell” rating.
Overall, five investment analysts have rated NVIDIA’s stock as a Strong Buy, while 46 assigned it a Buy rating. The stock currently carries an average rating of “Buy” with an average target price of $262.14, according to data from MarketBeat.
Insider Transactions and Stock Performance
Insider trading activity has also been noteworthy. On December 15, 2023, Harvey C. Jones, a director at NVIDIA, sold 250,000 shares at an average price of $177.33, totaling $44,332,500. After this transaction, Jones retains 6,933,280 shares, valued at approximately $1.23 billion. Similarly, Mark A. Stevens, another director, sold 222,500 shares on December 19, 2023 for around $40 million.
In total, insiders sold 1,936,474 shares worth $354.36 million in the last quarter, with insider ownership currently at 4.17% of the company.
As of the market opening on December 22, 2023, NVIDIA shares were trading at $188.85. The company has experienced a 52-week low of $86.62 and a high of $212.19. NVIDIA’s market capitalization stands at approximately $4.59 trillion, with a price-to-earnings ratio of 46.86.
NVIDIA recently reported its earnings results on November 19, 2023, posting earnings per share of $1.30 and exceeding consensus estimates by $0.07. The firm achieved revenues of $57.01 billion, significantly above the expected $54.66 billion. Year-over-year, revenue increased by 62.5%, marking a substantial growth trajectory.
In addition to its financial performance, NVIDIA announced a quarterly dividend of $0.01 per share paid on December 26, 2023, with an annualized dividend yield of 0.04%.
As the semiconductor market continues to evolve, NVIDIA’s strategic moves and analyst sentiment position the company favorably for future growth, even as it navigates challenges such as rising competition and margin sustainability.
