Compound Planning Inc. Reduces Stake in NVIDIA Corporation $NVDA

Key Points

• Compound Planning Inc. cut its NVIDIA stake by 3.5% in the first quarter, selling 12,622 shares and retaining 346,487 shares worth approximately $60.4 million. NVIDIA remains the fund’s fifth-largest holding, representing about 1.9% of its portfolio.
• NVIDIA reported quarterly EPS of $1.87 and revenue of $81.61 billion, exceeding analyst expectations, while revenue increased 85.2% year over year. Analysts maintain a consensus “Buy” rating with an average price target of $304.26.
• Despite strong institutional ownership and operating results, NVIDIA directors sold significant shares, including a $186 million sale by Mark A. Stevens. The company also raised its quarterly dividend to $0.25 and authorized an $80 billion share-repurchase program.

Compound Planning Inc. lessened its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 3.5% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 346,487 shares of the computer hardware maker's stock after selling 12,622 shares during the quarter. NVIDIA comprises about 1.9% of Compound Planning Inc.'s portfolio, making the stock its 5th largest holding. Compound Planning Inc.'s holdings in NVIDIA were worth $60,427,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of NVDA. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA during the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA in the 1st quarter valued at $27,000. Longfellow Investment Management Co. LLC grew its holdings in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after buying an additional 67 shares in the last quarter. Phillip James Consulting Co. acquired a new position in NVIDIA in the 1st quarter valued at $40,000. Finally, Inspire Investing LLC bought a new position in NVIDIA during the 4th quarter worth $44,000. Institutional investors own 65.27% of the company's stock.

Analyst Upgrades and Downgrades

NVDA has been the subject of a number of recent research reports. Stifel Nicolaus set a $282.00 target price on shares of NVIDIA and gave the company a "buy" rating in a research report on Thursday, May 21st. CICC Research raised their price target on shares of NVIDIA from $240.60 to $268.30 and gave the stock an "outperform" rating in a research report on Friday, May 22nd. Citigroup assumed coverage on shares of NVIDIA in a research note on Wednesday, April 15th. They issued a "buy" rating for the company. Daiwa Securities Group boosted their price objective on shares of NVIDIA from $215.00 to $255.00 and gave the company an "outperform" rating in a report on Friday, May 22nd. Finally, Susquehanna restated a "positive" rating and set a $275.00 target price (up from $250.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $304.26.

Insider Buying and Selling at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA 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 sale, the director directly owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. The trade was 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 company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 over the last 90 days. Insiders own 3.94% of the company's stock.

NVIDIA Stock Performance

NASDAQ NVDA opened at $211.94 on Wednesday. The firm's 50 day simple moving average is $205.18 and its 200 day simple moving average is $196.55. The firm has a market capitalization of $5.13 trillion, a price-to-earnings ratio of 32.46, a P/E/G ratio of 0.40 and a beta of 2.23. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. NVIDIA Corporation has a 1 year low of $164.07 and a 1 year high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings data 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. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during 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 was up 85.2% on a year-over-year basis. As a group, research analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.5%. This is a boost from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA's payout ratio is 15.31%.

NVIDIA announced that its board has authorized a stock buyback plan 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 reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Elon Musk said SpaceX will build “exclusively” on NVIDIA’s Vera Rubin platform, providing a potentially significant high-profile customer commitment and strengthening confidence in demand for NVIDIA’s next-generation systems. Musk Praises Vera Rubin Platform on SpaceX Earnings Call, Nvidia Stock Climbs
• Positive Sentiment: Corvex secured a multi-year agreement for Blackwell GPU infrastructure, including liquid-cooled clusters, Quantum-2 InfiniBand and high-speed storage. The deployment adds another large-scale Blackwell installation without issuing new shares. Nvidia Stock Surges as Corvex Secures Multi-Year Blackwell GPU Deal
• Positive Sentiment: Anthropic reportedly signed a six-year, $10 billion computing agreement with NVIDIA-backed Volta Infra. The arrangement could support demand for Vera Rubin systems and validates the growth of AI cloud infrastructure. Anthropic Inks $10B Computing Deal With Nvidia-Backed Volta Infra
• Positive Sentiment: Reports describing a roughly 12-to-1 demand-to-supply imbalance, scarce chips and strong chip resale values reinforced the view that NVIDIA retains pricing power amid the AI buildout. NVIDIA Facing 12-to-1 Demand to Supply
• Positive Sentiment: NVIDIA’s Open Secure AI Alliance has expanded to more than 120 companies and is developing shared security standards, potentially broadening NVIDIA’s influence across the AI software ecosystem. Nvidia’s Open Secure AI Alliance Shows Progress
• Neutral Sentiment: Export controls are creating a gray market in Southeast Asia, where buyers use proxy cloud access to obtain NVIDIA-based compute. This signals inelastic demand but also highlights continuing regulatory and geopolitical risks. The AI Chip Blockade Is Creating a Shadow Market
• Negative Sentiment: Investor Michael Burry reportedly increased put-option exposure to NVIDIA, Micron and semiconductor ETFs, renewing concerns that AI spending expectations and valuations may be vulnerable to a correction. Michael Burry’s Latest Bet Puts Nvidia’s AI Boom on Trial
• Negative Sentiment: Analysts continue to warn that custom chips, AI inference workloads and software capable of rewriting code could gradually weaken NVIDIA’s CUDA advantage and pressure future margins.

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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