Ares Financial Consulting LLC Acquires New Position in NVIDIA Corporation $NVDA

Key Points

• Ares Financial Consulting LLC opened a new position in NVIDIA during the fourth quarter, buying 9,628 shares worth about $1.8 million. NVIDIA now represents roughly 1.6% of the firm’s portfolio and is its 13th largest holding.
• NVIDIA reported a strong quarterly result, with EPS of $1.87 and revenue of $81.62 billion, both above expectations and up sharply from a year earlier. The company also authorized an $80 billion share buyback and raised its quarterly dividend from $0.01 to $0.25 per share.
• Despite the upbeat fundamentals, several insiders sold shares, including Director Mark A. Stevens and CFO Colette Kress, and analysts remain broadly positive with an average Buy rating and target price near $298.58.

Ares Financial Consulting LLC acquired a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor acquired 9,628 shares of the computer hardware maker's stock, valued at approximately $1,796,000. NVIDIA makes up approximately 1.6% of Ares Financial Consulting LLC's portfolio, making the stock its 13th largest holding.

Several other large investors also recently bought and sold shares of the business. Joule Financial LLC grew its stake in NVIDIA by 2.2% during the 3rd quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker's stock valued at $431,000 after acquiring an additional 50 shares in the last quarter. Presidio Capital Management LLC boosted its holdings in NVIDIA by 0.4% in the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock valued at $2,823,000 after purchasing an additional 53 shares during the last quarter. Vision Financial Markets LLC boosted its holdings in NVIDIA by 1.2% in the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock valued at $866,000 after purchasing an additional 53 shares during the last quarter. IMG Wealth Management Inc. boosted its holdings in NVIDIA by 1.4% in the 3rd quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock valued at $713,000 after purchasing an additional 54 shares during the last quarter. Finally, Cyr Financial Inc. boosted its holdings in NVIDIA by 0.7% in the 3rd quarter. Cyr Financial Inc. now owns 7,737 shares of the computer hardware maker's stock valued at $1,444,000 after purchasing an additional 54 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company's stock.

Insider Transactions at NVIDIA

In other news, Director Mark A. Stevens sold 221,682 shares of the company's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $173.68, for a total value of $38,501,729.76. Following the transaction, the director directly owned 7,399,771 shares in the company, valued at approximately $1,285,192,227.28. This represents a 2.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Colette Kress sold 42,650 shares of the company's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $174.89, for a total transaction of $7,459,058.50. Following the sale, the chief financial officer directly owned 881,387 shares in the company, valued at approximately $154,145,772.43. The trade was a 4.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 906,336 shares of company stock worth $162,802,518. 4.17% of the stock is owned by company insiders.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record revenue, earnings and cash flow, plus a major beat in data center sales, reinforce NVIDIA’s AI leadership and suggest demand remains very strong.
• Positive Sentiment: The $80 billion buyback and much higher dividend signal management confidence and should support shareholder returns.
• Positive Sentiment: Multiple analysts raised price targets after the report, reflecting continued Wall Street optimism about NVDA’s long-term growth. Article Title
• Neutral Sentiment: Management’s new outlook excludes China data-center revenue, which leaves some uncertainty around a key growth market.
• Neutral Sentiment: The stock had already run up sharply into earnings, so the market may be using the report as a chance to take profits or wait for even more upside from next-generation Vera Rubin products.
• Negative Sentiment: Investor expectations were so high that even a blockbuster quarter failed to spark a rally, suggesting the stock may be priced for perfection and vulnerable to near-term volatility.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on NVDA. New Street Research decreased their target price on shares of NVIDIA from $307.00 to $275.00 and set a "buy" rating on the stock in a report on Tuesday, March 31st. BNP Paribas Exane boosted their target price on shares of NVIDIA from $270.00 to $285.00 and gave the company an "outperform" rating in a report on Thursday. Citigroup began coverage on shares of NVIDIA in a report on Wednesday, April 15th. They issued a "buy" rating on the stock. William Blair set a $300.00 target price on shares of NVIDIA in a report on Thursday, March 12th. Finally, Fundamental Research set a $218.00 target price on shares of NVIDIA in a report on Thursday, February 26th. Four research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $298.58.

NVIDIA Stock Performance

Shares of NVDA stock opened at $219.51 on Friday. The firm's 50 day moving average price is $195.51 and its 200-day moving average price is $188.87. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.24 and a current ratio of 3.91. NVIDIA Corporation has a one year low of $129.16 and a one year high of $236.54. The firm has a market cap of $5.32 trillion, a P/E ratio of 33.62, a P/E/G ratio of 0.69 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 110.48%. The firm had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the business posted $0.81 EPS. The business's revenue for the quarter was up 85.2% compared to the same quarter last year. As a group, equities research analysts predict that NVIDIA Corporation will post 7.89 EPS for the current year.

NVIDIA announced that its Board of Directors has authorized a stock repurchase program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its shares are undervalued.

NVIDIA Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be issued a $0.25 dividend. The ex-dividend date is Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio (DPR) is currently 0.82%.

About NVIDIA

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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