Convergence Financial LLC Reduces Holdings in NVIDIA Corporation $NVDA

Key Points

• Convergence Financial LLC trimmed its NVIDIA stake by 4.9% in the fourth quarter, selling 3,245 shares and leaving it with 62,437 shares valued at about $11.65 million.
• NVIDIA’s recent earnings beat expectations, reporting $1.87 EPS on $81.62 billion in revenue, while revenue jumped 85.2% year over year. The company also authorized an $80 billion share repurchase program and increased its quarterly dividend to $0.25.
• Despite some valuation and market pullback concerns, analysts remain bullish on NVDA, with a consensus rating of “Buy” and an average price target of $305.67.

Convergence Financial LLC trimmed its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 4.9% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 62,437 shares of the computer hardware maker's stock after selling 3,245 shares during the period. NVIDIA accounts for about 1.7% of Convergence Financial LLC's investment portfolio, making the stock its 18th biggest holding. Convergence Financial LLC's holdings in NVIDIA were worth $11,645,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Longfellow Investment Management Co. LLC lifted its position in NVIDIA by 47.9% during the second 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 during the period. Spurstone Advisory Services LLC purchased a new position in NVIDIA during the second quarter valued at $40,000. Syntax Research Inc. lifted its position in NVIDIA by 62.5% during the fourth quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock valued at $49,000 after buying an additional 100 shares during the period. Sellwood Investment Partners LLC purchased a new position in NVIDIA during the third quarter valued at $50,000. Finally, Networth Advisors LLC purchased a new position in NVIDIA during the fourth quarter valued at $51,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Colette Kress sold 42,650 shares of NVIDIA stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $174.89, for a total value of $7,459,058.50. Following the completion of the sale, the chief financial officer owned 881,387 shares of the company's stock, valued at $154,145,772.43. The trade was a 4.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,622,461 shares of company stock worth $332,629,083 over the last quarter. Corporate insiders own 3.94% of the company's stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts remain broadly bullish, with reports saying NVIDIA’s profit margins look relatively safe through 2030 and Wall Street still sees strong upside from AI demand, Blackwell ramp momentum, and continued data center spending.
• Positive Sentiment: Several articles highlight fresh demand signals for NVIDIA hardware, including OpenAI reportedly considering an Ohio data center deal with Nvidia backing, Apple using NVIDIA GPUs for advanced AI workloads via Google Cloud, and Nebius launching NVIDIA-powered AI initiatives in the UK and Europe.
• Positive Sentiment: Management and supporters are framing the recent pullback as a buying opportunity, with Jensen Huang’s upbeat comments echoed by commentators such as Jim Cramer and multiple bullish stock-picking pieces.
• Positive Sentiment: Company-specific partnerships in South Korea and continued ecosystem expansion suggest NVIDIA remains central to the AI infrastructure buildout, which supports the long-term growth story.
• Neutral Sentiment: Some coverage notes that NVIDIA’s stock is consolidating near technical support after a strong run, which could matter more as a setup for the next move than as a sign of deteriorating fundamentals.
• Negative Sentiment: The main headwind is a broader semiconductor and tech selloff, with NVIDIA falling alongside peers like AMD and Broadcom as markets react to inflation, geopolitical worries, and a general pullback from high-multiple AI names.
• Negative Sentiment: Some articles also raise valuation concerns and point to hedge fund/institutional selling, suggesting investors are becoming more cautious after NVIDIA’s huge multi-year run.

Analyst Ratings Changes

Several brokerages have commented on NVDA. Royal Bank Of Canada set a $280.00 price objective on NVIDIA in a research report on Thursday, May 21st. HSBC reissued a "buy" rating and set a $325.00 price objective (up from $295.00) on shares of NVIDIA in a research report on Tuesday, May 19th. Citigroup began coverage on NVIDIA in a research report on Wednesday, April 15th. They set a "buy" rating for the company. Benchmark reissued a "buy" rating and set a $335.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Wall Street Zen upgraded NVIDIA from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 23rd. Three 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. Based on data from MarketBeat, NVIDIA presently has an average rating of "Buy" and a consensus target price of $305.67.

NVIDIA Price Performance

NVDA opened at $200.42 on Thursday. The stock has a 50-day moving average price of $205.64 and a 200-day moving average price of $191.06. 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 firm has a market cap of $4.85 trillion, a PE ratio of 30.69, a P/E/G ratio of 0.47 and a beta of 2.22. NVIDIA Corporation has a 1 year low of $140.85 and a 1 year 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 (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.62 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.NVIDIA's quarterly revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.81 EPS. Sell-side analysts predict that NVIDIA Corporation will post 8.61 earnings per share for the current fiscal year.

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

NVIDIA Increases Dividend

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

About NVIDIA

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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