Arlington Trust Co LLC Sells 36,094 Shares of NVIDIA Corporation $NVDA

Key Points

• Arlington Trust Co LLC cut its NVIDIA stake by 69.5% in the fourth quarter, selling 36,094 shares and ending with 15,848 shares valued at about $2.96 million.
• NVIDIA’s latest quarterly results were strong, with EPS of $1.87 and revenue of $81.62 billion, both above expectations and far higher than a year ago.
• The company boosted shareholder returns by approving an $80 billion share buyback and raising its quarterly dividend from $0.01 to $0.25 per share, while analysts remained broadly bullish with a consensus Buy rating.

Arlington Trust Co LLC reduced its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 69.5% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 15,848 shares of the computer hardware maker's stock after selling 36,094 shares during the quarter. NVIDIA accounts for approximately 0.3% of Arlington Trust Co LLC's investment portfolio, making the stock its 18th biggest holding. Arlington Trust Co LLC's holdings in NVIDIA were worth $2,956,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC raised its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after acquiring an additional 67 shares in the last quarter. Spurstone Advisory Services LLC bought a new stake in NVIDIA during the second quarter worth $40,000. Sellwood Investment Partners LLC bought a new stake in NVIDIA during the third quarter worth $50,000. Networth Advisors LLC bought a new stake in NVIDIA during the fourth quarter worth $51,000. Finally, EDENTREE ASSET MANAGEMENT Ltd bought a new stake in NVIDIA during the second quarter worth $54,000. 65.27% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

NVDA has been the topic of several research analyst reports. Weiss Ratings reissued a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. Benchmark reissued a "buy" rating and issued a $335.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Thursday. Stifel Nicolaus set a $282.00 price objective on shares of NVIDIA and gave the company a "buy" rating in a research report on Thursday. DA Davidson increased their price objective on shares of NVIDIA from $250.00 to $300.00 and gave the company a "buy" rating in a research report on Monday. Finally, Wall Street Zen lowered shares of NVIDIA from a "strong-buy" rating to a "buy" rating in a research report on Sunday, April 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, NVIDIA presently has a consensus rating of "Buy" and a consensus price target of $298.58.

NVIDIA Trading Down 1.8%

NVDA stock opened at $219.51 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.24 and a current ratio of 3.91. The company's 50-day simple moving average is $195.51 and its 200 day simple moving average is $188.87. NVIDIA Corporation has a 52 week low of $129.16 and a 52 week high of $236.54. The company has a market capitalization of $5.32 trillion, a PE ratio of 33.62, a price-to-earnings-growth ratio of 0.69 and a beta of 2.25.

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

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a dividend of $0.25 per share. The ex-dividend date is Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA's dividend payout ratio is currently 0.82%.

NVIDIA announced that its Board of Directors has initiated a share repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In other NVIDIA news, EVP Ajay K. Puri sold 300,000 shares of the stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the sale, the executive vice president directly owned 3,018,547 shares in the company, valued at $550,130,190.75. This represents a 9.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Colette Kress sold 20,000 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $174.89, for a total transaction of $3,497,800.00. Following the sale, the chief financial officer owned 83,060 shares in the company, valued at $14,526,363.40. The trade was a 19.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 906,336 shares of company stock valued at $162,802,518. Company insiders own 4.17% of the company's stock.

Key Stories Impacting NVIDIA

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.

NVIDIA Profile

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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