Cannon Capital Management Inc. Takes $2.27 Million Position in NVIDIA Corporation $NVDA

Key Points

• Cannon Capital Management initiated a new position in NVIDIA during the fourth quarter, buying 12,158 shares worth about $2.27 million. NVIDIA now accounts for roughly 2% of the firm’s portfolio.
• NVIDIA reported strong quarterly results, with EPS of $1.87 and revenue of $81.62 billion, both above analyst estimates. Revenue rose 85.2% year over year, and the company also posted very high margins and returns.
• The board approved an $80 billion share buyback and raised the quarterly dividend from $0.01 to $0.25 per share, signaling confidence in future cash flow. Despite the upbeat results, the stock was still trading lower, while analysts remained broadly bullish with a consensus Buy rating.

Cannon Capital Management Inc. acquired a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 12,158 shares of the computer hardware maker's stock, valued at approximately $2,267,000. NVIDIA makes up about 2.0% of Cannon Capital Management Inc.'s investment portfolio, making the stock its 14th largest position.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Heritage Investment Group Inc. lifted its position in NVIDIA by 5.1% during the fourth quarter. Heritage Investment Group Inc. now owns 10,558 shares of the computer hardware maker's stock valued at $1,969,000 after acquiring an additional 508 shares during the last quarter. Joseph Group Capital Management purchased a new stake in NVIDIA during the fourth quarter valued at approximately $474,000. Wagner Wealth Management LLC lifted its position in NVIDIA by 47.9% during the fourth quarter. Wagner Wealth Management LLC now owns 13,944 shares of the computer hardware maker's stock valued at $2,601,000 after acquiring an additional 4,519 shares during the last quarter. Canandaigua National Trust Co of Florida lifted its position in NVIDIA by 64.2% during the fourth quarter. Canandaigua National Trust Co of Florida now owns 16,508 shares of the computer hardware maker's stock valued at $3,079,000 after acquiring an additional 6,456 shares during the last quarter. Finally, Oakwell Private Wealth Management LLC lifted its position in NVIDIA by 39.4% during the fourth quarter. Oakwell Private Wealth Management LLC now owns 59,486 shares of the computer hardware maker's stock valued at $11,094,000 after acquiring an additional 16,818 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Trading Down 1.9%

NASDAQ NVDA opened at $215.33 on Friday. The company has a fifty day simple moving average of $196.10 and a two-hundred day simple moving average of $189.06. The stock has a market cap of $5.21 trillion, a P/E ratio of 32.98, a P/E/G ratio of 0.67 and a beta of 2.25. NVIDIA Corporation has a 12-month low of $129.16 and a 12-month high of $236.54. The company has a current ratio of 3.44, a quick ratio of 3.24 and a debt-to-equity ratio of 0.04.

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 (EPS) for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. The business had revenue of $81.62 billion during the quarter, compared to analysts' expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business's quarterly revenue was up 85.2% on a year-over-year basis. During the same quarter last year, the company posted $0.81 earnings per share. On average, analysts forecast that NVIDIA Corporation will post 7.98 earnings per share for the current year.

NVIDIA declared that its Board of Directors has initiated a stock buyback 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 reacquire up to 1.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

NVIDIA Increases Dividend

The business 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 $0.25 dividend. This is an increase from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA's dividend payout ratio is 15.31%.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA delivered a record quarter with massive revenue growth, strong guidance, and record data center sales. The Tech Download: What you might have missed in Nvidia's earnings — a $200 billion opportunity and edge computing
• Positive Sentiment: The company raised its dividend sharply and approved an $80 billion buyback, signaling confidence in future cash generation. Nvidia Just Raised Its Dividend By 2,400% -- and That Wasn't Even the Biggest News From Its Earnings Report
• Positive Sentiment: Wall Street remains broadly bullish, with multiple analysts raising price targets after earnings. Nvidia stock continues to struggle after earnings, but analysts remain firmly bullish
• Neutral Sentiment: Despite the strong report, the market seems to be digesting the results rather than rewarding them, suggesting investors may think the bar was already very high. Nvidia Stock Misses Out on Friday's Rally. Here's How Much Traders See It Moving Next Week
• Negative Sentiment: Some investors remain worried about valuation, competition, and the possibility that AI spending growth could slow from current extreme levels. Why Nvidia Stock Is Barely Moving After Earnings Crushed Expectations

Insider Activity

In related news, Director Mark A. Stevens sold 221,682 shares of the firm's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $173.68, for a total transaction of $38,501,729.76. Following the completion of the transaction, the director owned 7,399,771 shares of the company's stock, valued at $1,285,192,227.28. This trade represents a 2.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Aarti S. Shah sold 19,000 shares of the firm's stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the transaction, the director directly owned 36,007 shares of the company's stock, valued at approximately $6,362,796.97. This trade represents a 34.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 906,336 shares of company stock valued at $162,802,518 over the last quarter. Insiders own 4.17% of the company's stock.

Analysts Set New Price Targets

NVDA has been the subject of a number of analyst reports. DA Davidson increased their target price on shares of NVIDIA from $250.00 to $300.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Weiss Ratings reissued a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. William Blair set a $300.00 target price on shares of NVIDIA in a research report on Thursday, March 12th. Piper Sandler reissued an "overweight" rating on shares of NVIDIA in a research report on Thursday, February 26th. Finally, Seaport Research Partners increased their target price on shares of NVIDIA from $140.00 to $180.00 and gave the company a "sell" rating in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, NVIDIA presently has a consensus rating of "Buy" and a consensus target price of $303.27.

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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