New Street Research updates NVDA to buy

New Street Research just released their rating for NVDA. As of Apr 12th, 2022 New Street Research rates NVDA as a buy, compared to their previous rating of hold for NVDA.

What stocks is New Street Research currently covering?

To give you some perspective, New Street Research covers 20 companies. We can take a look at the overall rating distribution across these companies. Here is the rating breakdown for the 20 companies it currently covers:

15 Buys

5 Holds

0 Sells

Current NVDA Analyst Ratings

Here is the current analyst rating distribution for NVDA. In total there are 28 NVDA analyst ratings.

22 Buys

5 Holds

1 Sell

Analyst Ratings have provided relatively strong indicators of future price movement, which is why they are used to determine a NVDA stock forecast. However, this shouldn't be the only factor when determining whether to invest in NVIDIA Corporation, I would use Analyst Ratings as a datapoint along with other fundamental indicators and investment metrics.

GRANDVIEW ASSET MANAGEMENT LLC Increases $NVDA Holdings

On 2022-03-31 GRANDVIEW ASSET MANAGEMENT LLC changed its ownership of NVDA from 58,031 to 57,221. The current market value for these shares is 15.61M. As of Apr 26th, 2022 NVDA represents 6.6% of their total portfolio.

It is useful to know how a fund is performing overall. This provides an indication of their ability to select stocks and build a profitable portfolio. It is tough to beat the market, and even tougher for funds because they need to have proper asset allocation relative to their fund's risk profile.

Fund Performance Summary

First, let's look at the fund itself to get some context before looking at the performance. GRANDVIEW ASSET MANAGEMENT LLC currently holds 136 different investments in their portfolio and have a current fund value of $236.4M. We can see based on the size of the fund that NVDA, representing 6.6% of their total portfolio, is a pretty significant holding.

Let's take a closer look at GRANDVIEW ASSET MANAGEMENT LLC to see how they've performed as a whole. Here are their returns

1-year return 8.67%.
3-year return 54.55%.
Return Since inception 63.88%.

Typically we want to see a fund "beat" the market, otherwise you are better off just investing in the S&P 500. So let's take a quick look and see how GRANDVIEW ASSET MANAGEMENT LLC performed relative to the S&P 500 over the same time periods

So this gives us a good sense of GRANDVIEW ASSET MANAGEMENT LLC performance as a fund. What we want to look at now is how they have managed their NVDA holdings as part of their fund.

They first added NVDA to their fund in 1,975, which is a while ago. As mentioned earlier, they changed their holdings of NVDA by -1.28% by selling 810 shares at an average price per share of $295.86

Why Tracking Fund Buying and Selling is Useful

There are several reasons a fund buys or sells different holdings in its portfolio. Most of the time they are rebalancing their portfolio to ensure it aligns with the fund's objectives and risk tolerance. When we see a relatively small change in holdings for a particular stock that they already own then it might not be particularly insightful. If we see a fund take a significant position in a company or sell a significant position then that is a sign of its conviction regarding the future performance of the company in question.

As an investor, this is useful to know because it provides an interesting data point in terms of what "smart" money thinks about a stock. Fund managers might come out and say positive or negative things about a company, but knowing where they actually put their money is more telling. This should be taken with a grain of salt because sometimes funds are wrong in their plays. You also have to look at the track record in terms of stock picks and performance.

Final Thoughts on NVDA Position Increase

Looking at GRANDVIEW ASSET MANAGEMENT LLC recent re-allocation of its NVDA holdings seems to be pretty straightforward and likely part of their risk management and rebalancing requirements.