Sumitomo Life Insurance Trims Stake in NVIDIA Co. (NVDA) by 6.4%, Holding Valued at $20.77 Million

Get the latest on Sumitomo Life Insurance’s strategic move as it decreases its holdings in NVIDIA Co., impacting its investment portfolio. Discover the implications for both companies and the market at large.

Sumitomo Life Insurance Co. has strategically reduced its stake in NVIDIA Co. (NASDAQ: NVDA) by 6.4%

According to its latest disclosure with the Securities and Exchange Commission. The Japanese insurer sold 3,265 shares of the computer hardware giant during the third quarter, bringing its total holdings to 47,737 shares. Despite the reduction, NVIDIA remains a significant part of Sumitomo Life Insurance Co.’s investment portfolio, ranking as its 15th largest holding and valued at $20.77 million at the end of the quarter.

This move by Sumitomo Life Insurance Co. aligns with a broader trend seen among large investors adjusting their positions in NVIDIA. Other notable institutional investors and hedge funds have either increased or decreased their stakes in the company. Peoples Financial Services CORP., Marquette Asset Management LLC, Quarry LP, Compass Wealth Management LLC, and MRP Capital Investments LLC are among those making moves in recent quarters. Institutional investors and hedge funds collectively own 64.79% of NVIDIA’s outstanding shares.

NVIDIA’s stock (NVDA) opened at $490.97 on Monday, boasting a market capitalization of $1.21 trillion. The company currently holds a price-to-earnings (P/E) ratio of 64.77, a P/E/G ratio of 3.29, and a beta of 1.64. Its financial health is supported by a quick ratio of 3.06, a current ratio of 3.59, and a debt-to-equity ratio of 0.25. The 50-day moving average price is $476.28, while the two-hundred-day moving average is $455.28. The stock has shown a remarkable 12-month performance, reaching a high of $505.48 and a low of $140.34.

NVIDIA reported its quarterly earnings results on November 21st, surpassing expectations with earnings per share (EPS) of $4.02, beating the consensus estimate of $3.03 by $0.99. The company’s revenue for the quarter was $18.12 billion, exceeding analyst estimates of $16.19 billion. NVIDIA demonstrated a net margin of 42.10% and a return on equity of 72.28%. Year-over-year, the firm’s revenue surged by an impressive 205.5%. Analysts anticipate that NVIDIA Co. will post 11.06 earnings per share for the current fiscal year.

In terms of shareholder returns, NVIDIA recently declared a quarterly dividend, paying $0.04 per share on December 28th. The ex-dividend date was December 5th, and the annualized dividend yield stands at 0.03%. NVIDIA’s dividend payout ratio (DPR) currently sits at 2.11%.

Insider activity at NVIDIA has been noteworthy, with Director Dawn E. Hudson recently selling 1,000 shares at an average price of $492.52, totaling $492,520. Following the sale, Hudson holds 70,500 shares valued at approximately $34,722,660. In the last three months, insiders have collectively sold 77,442 shares, amounting to $37,710,302. Insiders now own 3.99% of the company’s stock.

Analysts have been bullish on NVDA, with Truist Financial raising its price target to $674.00, TD Cowen to $700.00, Benchmark to $625.00, and The Goldman Sachs Group to $625.00. According to MarketBeat, NVIDIA has an average rating of “Moderate Buy,” with an average price target of $593.26.

About NVIDIA:

NVIDIA Corporation is a global provider of graphics, computing, and networking solutions, offering a range of products from GeForce GPUs for gaming to enterprise workstation graphics. The company also provides solutions for gaming platforms, cloud-based visual and virtual computing, automotive infotainment systems, and 3D design and virtual world development through Omniverse software.

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