Balboa Wealth Partners Decreases Position in NVIDIA Corporation $NVDA

Key Points

• Balboa Wealth Partners trimmed its NVIDIA stake by 2.3% in the first quarter, selling 6,220 shares and leaving the fund with 258,903 shares worth about $45.2 million. NVIDIA remains its largest holding, representing 7.6% of the portfolio.
• NVIDIA posted strong quarterly results, beating EPS and revenue estimates with $1.87 EPS on $81.61 billion in revenue, both up sharply year over year. The company also announced an $80 billion share repurchase program and raised its quarterly dividend to $0.25 from $0.01.
• Institutional and analyst sentiment remains broadly positive, with 65.27% of shares held by institutions and hedge funds and a consensus analyst rating of “Buy.” However, the stock faces some headwinds from insider selling, AI spending concerns, and a recent lawsuit related to AI training.

Balboa Wealth Partners lowered its position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.3% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 258,903 shares of the computer hardware maker's stock after selling 6,220 shares during the period. NVIDIA accounts for 7.6% of Balboa Wealth Partners' portfolio, making the stock its largest holding. Balboa Wealth Partners' holdings in NVIDIA were worth $45,153,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of NVDA. State Street Corp increased its stake in shares of NVIDIA by 1.2% in the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock valued at $184,911,111,000 after buying an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC lifted its position in NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after buying an additional 3,383,441 shares in the last quarter. Norges Bank acquired a new position in NVIDIA during the 4th quarter worth about $62,244,133,000. Bank of America Corp DE grew its holdings in NVIDIA by 1.5% during the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker's stock worth $34,909,347,000 after acquiring an additional 2,849,678 shares during the last quarter. Finally, Legal & General Group Plc increased its position in NVIDIA by 1.5% in the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after acquiring an additional 2,609,560 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Price Performance

Shares of NVDA stock opened at $198.32 on Thursday. NVIDIA Corporation has a 52-week low of $149.26 and a 52-week high of $236.54. The stock has a market cap of $4.80 trillion, a PE ratio of 30.37, a PEG ratio of 0.45 and a beta of 2.22. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm's 50 day moving average price is $210.80 and its two-hundred day moving average price is $192.91.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the business posted $0.81 EPS. The firm's quarterly revenue was up 85.2% on a year-over-year basis. As a group, analysts forecast that NVIDIA Corporation will post 8.69 EPS for the current year.

NVIDIA declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its shares are undervalued.

NVIDIA Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA's payout ratio is currently 15.31%.

Insiders Place Their Bets

In other news, Director Stephen C. Neal sold 15,500 shares of the business's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Insiders own 3.94% of the company's stock.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to expand its AI ecosystem, including new BioNeMo and agentic AI tools for life sciences, which supports the long-term growth story. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Wall Street commentary remains constructive, with several analysts still calling NVDA a must-own AI leader despite the recent tech sell-off. NVIDIA (NVDA) Remains a Must-Own for Bernstein Despite Tech Sell-Off
• Neutral Sentiment: The latest earnings report was strong, with NVIDIA beating EPS and revenue estimates and posting very rapid year-over-year growth, providing a solid fundamental backdrop.
• Negative Sentiment: AI spending concerns and a memory-chip selloff are weighing on the entire semiconductor group, pressuring NVIDIA as investors question the pace of future demand. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: Reuters reported that NVIDIA was sued by music company Jamendo over AI training, adding legal uncertainty and headline risk. Nvidia sued by music company Jamendo over AI training

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on NVDA. William Blair reaffirmed an "outperform" rating on shares of NVIDIA in a research note on Tuesday, June 2nd. Craig Hallum raised their price target on shares of NVIDIA from $245.00 to $275.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Seaport Research Partners boosted their price objective on shares of NVIDIA from $140.00 to $180.00 and gave the stock a "sell" rating in a research report on Thursday, May 21st. Evercore reiterated an "outperform" rating and issued a $413.00 price objective (up from $352.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Bank of America reissued a "buy" rating and issued a $350.00 target price (up from $320.00) on shares of NVIDIA in a research note on Thursday, May 21st. Three 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 company's stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $305.67.

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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