Renaissance Technologies LLC Increases Investment in NVIDIA with Major Stake Boost

Renaissance Technologies LLC has significantly increased its investment in NVIDIA Corporation (NASDAQ: NVDA). According to the latest filing with the Securities and Exchange Commission (SEC), the investment firm raised its stake by an astounding 1,175.2% during the second quarter. This brings the total number of NVIDIA shares held by Renaissance Technologies to 7,021,790. The firm added 6,471,165 shares to its portfolio during this period.

NVIDIA now represents 1.5% of Renaissance Technologies' overall investment portfolio, making it the company's third-largest holding. As per the most recent SEC filing, the value of Renaissance Technologies' holdings in NVIDIA is reported to be approximately $867,494,000.

Additional Investor Activity

Other large investors have also been active in modifying their positions in NVIDIA recently. Vanguard Group Inc. increased its holdings by 4.3% in the first quarter, acquiring an additional 8,828,050 shares. This brought Vanguard's total shares to 213,335,626, valued at about $192.76 billion.

Furthermore, the Bank of New York Mellon Corp boosted its stake by 854.1% during the second quarter, now owning 182,622,629 shares valued at approximately $22.56 billion. Dimensional Fund Advisors LP increased its holdings in NVIDIA by 1,123.2%, owning 92,039,713 shares worth about $11.37 billion after purchasing 84,515,429 additional shares.

Massachusetts Financial Services Co. also expanded its stake in NVIDIA by 808.6%, holding 82,689,605 shares valued at around $10.22 billion after acquiring 73,589,208 shares in the last quarter. Meanwhile, Baillie Gifford & Co. raised its position by 696.6%, adding 71,757,065 shares, now totaling 82,058,614 shares worth about $10.14 billion.

Currently, institutional investors and hedge funds own approximately 65.27% of NVIDIA's stock.

NVIDIA Stock Overview

As of the last trading session, NVIDIA (NASDAQ: NVDA) opened at $138.00, with a market capitalization of $3.39 trillion. The company's price-to-earnings (P/E) ratio stands at 64.73, while its price-to-earnings growth (PEG) ratio is 1.25, indicating its current growth prospects.

NVIDIA has a beta of 1.67, reflecting a relatively higher volatility compared to the broader market. The stock has recorded a 50-day simple moving average of $121.88 and a 200-day simple moving average of $112.35. Its highest price over the past year has been $140.89, while the lowest was $39.23.

Recent Earnings and Plans

NVIDIA recently reported its quarterly earnings, announcing earnings per share of $0.68, surpassing the consensus estimate of $0.64 by $0.04. The company saw revenues of $30.04 billion, exceeding expectations of $28.74 billion. The return on equity stood at an impressive 113.50%, and the net margin was recorded at 55.04%. Compared to the same quarter last year, NVIDIA's revenue increased by 122.4%.

Additionally, NVIDIA announced a substantial share repurchase program, authorizing up to $50.00 billion in buybacks. This move generally indicates that the company’s management believes its shares are undervalued.

Dividends and Insiders

NVIDIA also declared a $0.01 per share quarterly dividend, which was distributed to investors who held shares as of September 12. This payout brings the annualized dividend to $0.04, yielding approximately 0.03%. Currently, NVIDIA’s payout ratio is positioned at 1.88%.

In terms of insider transactions, Director Tench Coxe sold 1,000,000 shares on September 19 at an average price of $119.27, totaling roughly $119.27 million. After the sale, Coxe still holds about 5,852,480 shares in NVIDIA. Additionally, CEO Jen Hsun Huang sold 120,000 shares on July 24, also as part of insider selling activities.

Analysts' Perspectives

The stock has been receiving mixed but generally positive reactions from analysts recently. Some financial analysts have increased their target prices, with Raymond James raising NVIDIA’s target from $120.00 to $140.00. Others, like Morgan Stanley, issued an $150.00 price target, reflecting optimism about the company’s performance.

Out of analysts who have reviewed NVIDIA stock, five have given it a hold rating, while 37 have recommended buying, and two rated it as a strong buy. The consensus rating stands at a “Moderate Buy” with an average target price of $143.07.

About NVIDIA Corporation

NVIDIA Corporation is a global leader in graphics and compute solutions, designing innovative GPUs and providing gaming, professional visualization, data center, and automotive solutions. The company operates in various regions, including the United States, Taiwan, China, and beyond.

NVIDIA's products include solutions for gamers, professionals, and enterprise applications, aiming to enhance experiences in artificial intelligence, gaming, and advanced computing.

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