Rothschild Investment Cuts NVIDIA Holdings to $68.50 Million

Rothschild Investment LLC has reduced its stake in NVIDIA Corporation (NASDAQ: NVDA) by 3.5%, lowering its holdings to approximately $68.50 million as of the end of the most recent quarter. This reduction comes following the sale of 15,591 shares, leaving the firm with 433,565 shares of the prominent computer hardware manufacturer. NVIDIA now represents about 4.3% of Rothschild’s investment portfolio, solidifying its status as the firm’s largest position.

Several other institutional investors have made significant adjustments to their investments in NVIDIA. Geode Capital Management LLC increased its holdings by 1.5% during the second quarter, now owning 579,213,497 shares valued at approximately $91.15 billion after acquiring an additional 8,521,936 shares. In an even more dramatic move, Kingstone Capital Partners Texas LLC boosted its stake by an astonishing 267,959.7%, bringing its total to 382,373,765 shares worth around $64.98 billion.

UBS Asset Management also raised its position by 2.9% in the first quarter, owning 206,794,926 shares valued at approximately $22.41 billion. Meanwhile, Goldman Sachs Group Inc. reported a remarkable increase of 123.5% in its holdings, now controlling 187,995,213 shares worth about $20.37 billion. Hedge funds and other institutional investors collectively hold 65.27% of NVIDIA’s stock.

Insider Transactions Signal Market Movements

Recent insider transactions have also drawn attention. On November 3, 2023, Chief Financial Officer Colette Kress sold 27,640 shares at an average price of $208.33, totaling $5,758,241.20. After the sale, Kress retained 2,828,122 shares, valued at approximately $589.18 million, marking a 0.97% decrease in her holdings.

Similarly, CEO Jensen Huang sold 25,000 shares on October 29, 2023, at an average price of $207.91, resulting in a transaction value of $5,197,750. Post-sale, Huang owns 69,733,203 shares valued at approximately $14.50 billion, reflecting a 0.04% decrease in his position. In total, corporate insiders have sold 2,949,931 shares worth about $531.61 million in the past ninety days, with insiders owning 4.17% of the company’s stock.

NVIDIA’s Financial Performance and Future Outlook

NVIDIA recently reported its earnings results, revealing earnings per share (EPS) of $1.30 for the quarter, surpassing analysts’ expectations of $1.23 by $0.07. The company achieved a return on equity of 99.24% and a net margin of 53.01%, with quarterly revenue reaching $57.01 billion, significantly exceeding forecasts of $54.66 billion. Compared to the same quarter last year, revenue increased by 62.5%.

Looking ahead, analysts project NVIDIA will post an EPS of 2.77 for the current year. The company also announced a quarterly dividend of $0.01 per share, set to be paid on December 26, 2023. The record date for this dividend is December 4, 2023, with an ex-dividend date also on December 4.

Analyst ratings for NVIDIA remain predominantly positive. Reports indicate that four analysts rate the stock as a Strong Buy, while forty-six have a Buy rating. The consensus price target stands at $258.65, reflecting confidence in NVIDIA’s growth potential.

In summary, Rothschild Investment LLC’s adjustment to its holdings in NVIDIA Corporation is part of a broader trend among institutional investors, amidst significant insider trading activity and strong overall financial performance from the company. As NVIDIA continues to evolve in the competitive tech landscape, its strategic moves and financial health will be closely monitored by both investors and analysts alike.