Arwa LLC Invests $986,000 in NVIDIA Corporation $NVDA

Key Points

• Arwa LLC disclosed a new position in NVIDIA during the fourth quarter, buying 5,287 shares valued at about $986,000.
• NVIDIA reported a strong latest quarter, with EPS of $1.87 and revenue of $81.61 billion, both ahead of Wall Street expectations and up sharply from a year earlier.
• The company also announced an $80 billion share buyback and raised its quarterly dividend to $0.25 per share, while analysts maintained a broadly bullish outlook with a consensus Buy rating.

Arwa LLC acquired a new stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 5,287 shares of the computer hardware maker's stock, valued at approximately $986,000.

Other large investors have also recently added to or reduced their stakes in the company. Joule Financial LLC increased its position in NVIDIA by 2.2% during the third quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker's stock worth $431,000 after acquiring an additional 50 shares during the period. Presidio Capital Management LLC raised its stake 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 worth $2,823,000 after purchasing an additional 53 shares in the last quarter. LMG Wealth Partners LLC boosted its holdings in NVIDIA by 0.7% in the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock valued at $1,427,000 after purchasing an additional 53 shares during the period. 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 period. Finally, IMG Wealth Management Inc. grew its position in shares of NVIDIA by 1.4% during the 3rd quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock worth $713,000 after purchasing an additional 54 shares in the last quarter. Institutional investors own 65.27% of the company's stock.

NVIDIA Stock Performance

NVDA opened at $210.69 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. NVIDIA Corporation has a fifty-two week low of $142.03 and a fifty-two week high of $236.54. The company's 50 day moving average price is $209.90 and its two-hundred day moving average price is $192.38. The firm has a market capitalization of $5.10 trillion, a price-to-earnings ratio of 32.26, a PEG ratio of 0.47 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion during the quarter, compared to analysts' expectations of $78.42 billion. During the same quarter in the prior year, the firm posted $0.81 earnings per share. The business's quarterly revenue was up 85.2% on a year-over-year basis. As a group, research analysts predict that NVIDIA Corporation will post 8.65 earnings per share for the current year.

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

NVIDIA Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Thursday, June 4th. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's dividend payout ratio (DPR) is 15.31%.

Insiders Place Their Bets

In other news, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director owned 116,135 shares of the company's stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director John Dabiri sold 625 shares of the firm's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director owned 14,163 shares of the company's stock, valued at $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,016,125 shares of company stock worth $224,582,565. Company insiders own 3.94% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on NVDA. DZ Bank reiterated a "buy" rating on shares of NVIDIA in a research note on Thursday, May 21st. Melius Research set a $400.00 price objective on NVIDIA in a report on Thursday, May 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. China Renaissance began coverage on NVIDIA in a report on Friday, June 5th. They set a "buy" rating and a $319.00 target price on the stock. Finally, KeyCorp set a $310.00 price target on NVIDIA and gave the stock an "overweight" rating in a research report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $305.67.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Jensen Huang’s latest comments were interpreted as a sign that demand for NVIDIA’s AI hardware remains strong, reinforcing the view that the company still has room to grow from the AI buildout. 13 Words From Jensen Huang That Spell Good News for Nvidia Shareholders
• Positive Sentiment: Multiple reports highlighted NVIDIA’s expanding AI ecosystem, including XR AI/public beta, physical AI, and new partnerships, which supports the case that NVIDIA is moving beyond data centers into additional growth markets. How NVIDIA (NVDA) Is Extending Its AI Infrastructure Reach Into XR and Physical AI
• Positive Sentiment: NVIDIA was said to have taken the No. 1 spot in data-center Ethernet switching by revenue in Q1, underscoring that its networking business is becoming a more meaningful part of the AI stack. Nvidia takes No. 1 spot in data center ethernet switching by revenue in Q1: IDC
• Positive Sentiment: Analysts and market commentary continued to point to NVIDIA as a leading AI beneficiary versus weaker chip names, with several pieces framing it as a core alternative in the ongoing semiconductor rally. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.
• Neutral Sentiment: Several articles noted that AI spending is broadening to suppliers, cloud providers, and custom-chip rivals, suggesting NVIDIA’s dominance is being challenged but not yet displaced. Google Is Using Nvidia's Playbook to Build a Rival AI Chip Business
• Negative Sentiment: There were also warning signs for investors, including commentary that NVIDIA has slipped since its last earnings report and concerns that heavy AI infrastructure spending, debt financing, and competition from Amazon and Google could pressure long-term margins or growth rates. Nvidia (NVDA) Down 4% Since Last Earnings Report: Can It Rebound?

NVIDIA Company 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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