Davis Selected Advisers Grows Position in NVIDIA Corporation $NVDA

Key Points

• Davis Selected Advisers increased its NVIDIA stake by 23.7% in the fourth quarter, bringing its holdings to 111,038 shares worth about $20.7 million.
• NVIDIA reported a strong quarter, with EPS of $1.87 and revenue of $81.62 billion, both above estimates and up sharply from a year earlier.
• The company boosted shareholder returns by raising its quarterly dividend from $0.01 to $0.25 and authorizing an $80 billion share buyback, while analysts remained broadly bullish on the stock.

Davis Selected Advisers grew its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 23.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 111,038 shares of the computer hardware maker's stock after purchasing an additional 21,243 shares during the period. Davis Selected Advisers' holdings in NVIDIA were worth $20,709,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of the stock. Longfellow Investment Management Co. LLC grew 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 acquired a new stake in NVIDIA during the second quarter valued at $40,000. Sellwood Investment Partners LLC acquired a new stake in NVIDIA during the third quarter valued at $50,000. Networth Advisors LLC acquired a new stake in NVIDIA during the fourth quarter valued at $51,000. Finally, EDENTREE ASSET MANAGEMENT Ltd acquired a new stake in NVIDIA during the second quarter valued at $54,000. Hedge funds and other institutional investors own 65.27% of the company's stock.

Key Stories 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

Analyst Ratings Changes

Several analysts recently commented on the stock. New Street Research dropped their price target on shares of NVIDIA from $343.00 to $340.00 in a research report on Thursday. Argus raised their price target on shares of NVIDIA from $220.00 to $270.00 and gave the company a "buy" rating in a research report on Thursday. Needham & Company LLC restated a "buy" rating and set a $270.00 price target (up from $240.00) on shares of NVIDIA in a research report on Thursday. Morgan Stanley set a $288.00 price target on shares of NVIDIA and gave the company an "overweight" rating in a research report on Thursday. Finally, The Goldman Sachs Group restated a "buy" rating and set a $285.00 price target (up from $250.00) on shares of NVIDIA in a research report on Wednesday. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $303.27.

Insiders Place Their Bets

In other news, Director Aarti S. Shah sold 19,000 shares of the business's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $176.71, for a total value of $3,357,490.00. Following the sale, the director directly owned 36,007 shares of the company's stock, valued at approximately $6,362,796.97. The trade was a 34.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Mark A. Stevens sold 221,682 shares of the business's stock in a transaction that occurred 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 sale, the director directly owned 7,399,771 shares in the company, valued at $1,285,192,227.28. This trade represents a 2.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 906,336 shares of company stock worth $162,802,518. Insiders own 4.17% of the company's stock.

NVIDIA Price Performance

Shares of NASDAQ NVDA opened at $215.33 on Monday. The company's 50-day simple moving average is $196.10 and its 200-day simple moving average is $188.93. NVIDIA Corporation has a 52-week low of $129.16 and a 52-week high of $236.54. The firm has a market cap of $5.21 trillion, a price-to-earnings ratio of 32.98, a price-to-earnings-growth ratio of 0.67 and a beta of 2.25. The company has a quick ratio of 3.24, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (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 $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter last 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. Equities analysts predict that NVIDIA Corporation will post 7.98 EPS for the current fiscal year.

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 paid a $0.25 dividend. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA's payout ratio is presently 0.61%.

NVIDIA announced that its board has initiated a share repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

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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