Acadian Asset Management Boosts NVIDIA Stake by 4.1 Million Shares

Acadian Asset Management LLC has significantly increased its stake in NVIDIA Corporation (NASDAQ:NVDA) by acquiring an additional 4,121,559 shares during the second quarter of 2023. According to its latest 13F filing with the Securities and Exchange Commission, Acadian now holds a total of 13,471,111 shares, marking a 44.1% increase in ownership. This makes NVIDIA approximately 4.4% of Acadian’s investment portfolio, solidifying it as the fund’s largest position.

The total value of Acadian’s holdings in NVIDIA reached approximately $2.13 billion at the close of the most recent reporting period. This substantial investment reflects growing confidence in the computer hardware maker, which has attracted attention from various institutional investors and hedge funds.

Several other investment firms have also adjusted their positions in NVIDIA. Harbor Asset Planning Inc. entered the market by acquiring shares worth around $28,000. Similarly, Spurstone Advisory Services LLC invested approximately $40,000 in the company. Kathleen S. Wright Associates Inc. increased its holdings by 169.3% in the first quarter, now owning 404 shares valued at roughly $44,000 after acquiring 254 additional shares.

Other notable investments include Legend Financial Advisors Inc., which purchased a new position worth about $55,000, and Campbell Capital Management Inc., which raised its stake by an impressive 5,900% during the first quarter, now holding 600 shares valued at approximately $65,000. Overall, institutional investors and hedge funds own 65.27% of NVIDIA’s stock.

NVIDIA’s Recent Performance and Market Outlook

On November 19, 2023, NVIDIA reported strong quarterly earnings, revealing an earnings per share (EPS) of $1.30, surpassing analysts’ expectations of $1.23 by $0.07. The company’s revenue for the quarter reached $57.01 billion, significantly higher than the anticipated $54.66 billion. This represents a remarkable 62.5% increase compared to the same quarter last year, when NVIDIA reported an EPS of $0.81.

Despite fluctuations in the market, NVIDIA’s stock opened at $183.38 on Friday, reflecting a 2.1% increase. The company maintains a market capitalization of $4.46 trillion, with a price-to-earnings ratio of 45.50 and a 12-month high of $212.19. Analysts predict an EPS of $2.77 for the current fiscal year.

In addition to its financial performance, NVIDIA announced a quarterly dividend of $0.01, set to be paid on December 26, 2023. Shareholders on record as of December 4 will be eligible for this dividend, which translates to an annualized payout of $0.04. The company’s dividend payout ratio currently stands at 0.99%.

Insider Activity and Analyst Ratings

Recent insider transactions reveal ongoing activity among NVIDIA executives. Director A. Brooke Seawell sold 12,728 shares on December 2, with the total sale valued at approximately $2.34 million. Additionally, Chief Financial Officer Colette Kress sold 20,000 shares on November 3, amounting to $4.17 million. Following these transactions, Kress retains 123,060 shares valued at approximately $25.64 million.

Over the last quarter, insiders have sold a total of 2,949,931 shares, valued at around $531.61 million. Insiders currently own 4.17% of the company’s stock.

Wall Street analysts remain optimistic about NVIDIA, with a majority rating the stock as a “Buy.” KeyCorp recently raised its price target from $250.00 to $275.00, while Rothschild & Co Redburn increased their target from $211.00 to $245.00. Overall, NVIDIA has received five Strong Buy ratings, 46 Buy ratings, two Hold ratings, and one Sell rating, culminating in a consensus target price of $258.65 according to MarketBeat.

NVIDIA Corporation continues to lead in the graphics and computing sector, providing innovative solutions across various markets, including gaming, automotive, and cloud computing. With strong financial results and increasing institutional interest, NVIDIA appears well-positioned for future growth.