Compass Capital Management Inc. Trims Holdings in NVIDIA Corporation $NVDA

Key Points

• Compass Capital Management cut its NVIDIA stake by 5.8% in the first quarter, selling 19,418 shares and retaining 312,835 shares valued at approximately $54.6 million. Institutional investors collectively own 65.27% of NVIDIA.
• Wall Street remains broadly bullish, with 48 analysts rating the stock a Buy and a consensus price target of $304.26. NVIDIA also reported quarterly revenue of $81.61 billion, up 85.2% year over year, and beat earnings expectations.
• NVIDIA increased its quarterly dividend to $0.25 per share and authorized an $80 billion share-repurchase program. However, sizable insider sales and concerns about customer concentration and the company’s growing role in financing AI infrastructure remain potential risks.

Compass Capital Management Inc. lowered its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 5.8% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 312,835 shares of the computer hardware maker's stock after selling 19,418 shares during the period. NVIDIA accounts for 3.2% of Compass Capital Management Inc.'s investment portfolio, making the stock its 13th largest holding. Compass Capital Management Inc.'s holdings in NVIDIA were worth $54,558,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Brighton Jones LLC grew its holdings in shares of NVIDIA by 12.4% during the fourth quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker's stock worth $43,631,000 after buying an additional 35,815 shares during the last quarter. Bank Pictet & Cie Europe AG raised its stake in NVIDIA by 1.0% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker's stock valued at $315,100,000 after acquiring an additional 22,929 shares during the last quarter. Highview Capital Management LLC DE raised its stake in NVIDIA by 6.7% during the 4th quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker's stock valued at $7,842,000 after acquiring an additional 3,653 shares during the last quarter. Hudson Value Partners LLC lifted its position in NVIDIA by 30.7% during the 4th quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker's stock worth $6,805,000 after acquiring an additional 11,900 shares during the period. Finally, Wealth Group Ltd. grew its stake in shares of NVIDIA by 15.7% in the 1st quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker's stock valued at $715,000 after purchasing an additional 896 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on NVDA. Weiss Ratings reissued a "buy (b)" rating on shares of NVIDIA in a report on Wednesday, July 8th. Citigroup assumed coverage on NVIDIA in a report on Wednesday, April 15th. They set a "buy" rating for the company. Citic Securities lifted their price objective on shares of NVIDIA from $242.00 to $315.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. TD Cowen reissued a "buy" rating and issued a $275.00 price objective (up from $235.00) on shares of NVIDIA in a research note on Friday, May 15th. Finally, KeyCorp restated an "overweight" rating and set a $330.00 price objective (up from $310.00) on shares of NVIDIA in a research report on Tuesday, July 14th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, NVIDIA has an average rating of "Buy" and a consensus price target of $304.26.

NVIDIA Stock Down 2.9%

NVDA opened at $217.55 on Tuesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The business has a 50 day simple moving average of $205.53 and a 200-day simple moving average of $197.54. The stock has a market capitalization of $5.26 trillion, a P/E ratio of 33.32, a P/E/G ratio of 0.44 and a beta of 2.23. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54.

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 firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the business earned $0.81 earnings per share. The company's revenue for the quarter was up 85.2% compared to the same quarter last year. On average, equities analysts anticipate that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Thursday, June 4th. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's payout ratio is presently 15.31%.

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

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA is reportedly partnering with Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield, Goldman Sachs and KKR on an AI infrastructure financing effort targeting up to $500 billion. The initiative could accelerate data-center construction and support future demand for NVIDIA’s GPUs. Nvidia teams up with Wall Street asset managers on $500 billion AI infrastructure push
• Positive Sentiment: Bank of America maintained a Buy rating and $350 price target, projecting second-quarter revenue of $94 billion to $95 billion—potentially $3 billion to $4 billion above NVIDIA’s guidance—and forecasting a “multi-quarter upgrade cycle.” BofA: Nvidia's next earnings report could kick off a multi-quarter upgrade cycle
• Positive Sentiment: Analysts remain constructive ahead of the August 26 earnings report, citing expected $91 billion of quarterly revenue, gross margins near 75%, strong Data Center demand and continued adoption of Blackwell systems. Nvidia: Buy Before Q2 Shows The AI Factory Trade Is Still Early
• Neutral Sentiment: NVIDIA is reportedly considering investing as much as $3 billion in Lancium, an AI data-center power infrastructure company. The investment could strengthen NVIDIA’s ecosystem position, but it also adds to questions about how much capital the chipmaker should devote to investments instead of share buybacks. Nvidia Stock Slips as Its AI Investments Draw Fresh Scrutiny
• Negative Sentiment: Investors are increasingly focused on NVIDIA’s expanding role in financing the AI buildout. Mark Cuban compared the strategy with dot-com-era companies that funded customers, raising concerns that financing could amplify concentration and credit risks if AI spending fails to generate adequate returns. Mark Cuban warned Nvidia's AI financing could crumble the market
• Negative Sentiment: Reports that Microsoft is reconsidering its reliance on NVIDIA in favor of internally developed AI silicon highlight a potential long-term customer-concentration and pricing risk, even though near-term demand remains robust. Microsoft rethinks its Nvidia reliance

Insider Transactions at NVIDIA

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

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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