D.B. Root & Company LLC Cuts Stock Holdings in NVIDIA Corporation $NVDA

Key Points

• D.B. Root & Company LLC reduced its NVIDIA stake by 10.1% in the fourth quarter, selling 2,827 shares and ending with 25,107 shares valued at about $4.68 million.
• NVIDIA reported strong fiscal Q1 results, with EPS of $1.87 beating estimates and revenue of $81.62 billion topping expectations, while quarterly revenue surged 85.2% year over year.
• The company also boosted shareholder returns by increasing its quarterly dividend to $0.25 per share and authorizing an $80 billion share buyback, even as analysts remain broadly bullish with a consensus Buy rating and $305.38 target price.

D.B. Root & Company LLC trimmed its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 10.1% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 25,107 shares of the computer hardware maker's stock after selling 2,827 shares during the quarter. NVIDIA makes up about 1.1% of D.B. Root & Company LLC's portfolio, making the stock its 21st biggest holding. D.B. Root & Company LLC's holdings in NVIDIA were worth $4,682,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the company. State Street Corp increased its holdings in shares of NVIDIA by 1.0% during the 2nd quarter. State Street Corp now owns 978,208,862 shares of the computer hardware maker's stock valued at $154,556,803,000 after purchasing an additional 9,554,857 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of NVIDIA by 1.5% during the 2nd quarter. Geode Capital Management LLC now owns 579,213,497 shares of the computer hardware maker's stock valued at $91,150,170,000 after purchasing an additional 8,521,936 shares in the last quarter. Norges Bank purchased a new position in shares of NVIDIA during the 2nd quarter valued at approximately $51,386,863,000. Legal & General Group Plc increased its holdings in shares of NVIDIA by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker's stock valued at $33,808,862,000 after purchasing an additional 2,609,560 shares in the last quarter. Finally, Capital Research Global Investors increased its holdings in shares of NVIDIA by 16.1% during the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock valued at $30,855,564,000 after purchasing an additional 22,896,705 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Investors are looking ahead to next week’s Computex conference, which could provide a fresh catalyst for NVIDIA’s AI-chip leadership and keep sentiment constructive around the stock. Why Nvidia stock is up around 1% today
• Positive Sentiment: Analysts and commentators continue to point to NVIDIA as the main winner from the AI server boom, with strong demand for its chips, Blackwell products, and broader data-center ecosystem. Jim Cramer names Nvidia as the winner behind Dell rally
• Positive Sentiment: News that NVIDIA is investing heavily in photonics, with billions directed toward next-generation data-center connectivity, suggests the company is trying to extend its AI leadership beyond GPUs into the next bottlenecks in AI infrastructure. Nvidia is investing billions into this emerging technology that could change the AI industry
• Positive Sentiment: Truist raised its price target on NVDA to $307 and kept a Buy rating, reinforcing the view that the company’s strong quarterly results and growth outlook remain intact. NVIDIA Corporation (NVDA) Stock Update: Truist Raises Target to $307 Following Strong Quarter
• Neutral Sentiment: CEO Jensen Huang’s reported advisory-board role at Tsinghua University keeps NVIDIA visible in China-related tech circles, but it is more of a corporate-profile headline than a direct earnings driver. Nvidia chief Jensen Huang to join board of Beijing's Tsinghua University, FT reports
• Negative Sentiment: Director John Dabiri sold 625 shares under a pre-arranged 10b5-1 trading plan, which is routine but can still add to investor caution when the stock is already expensive and volatile. SEC filing for John Dabiri transaction
• Negative Sentiment: Several articles highlight concerns that NVIDIA’s valuation is stretched and that the stock may be struggling to extend gains after a huge AI-driven run, which can weigh on near-term trading. Nvidia And The Reality Of Paying For Perfection

NVIDIA Trading Down 1.5%

Shares of NVDA opened at $211.14 on Friday. NVIDIA Corporation has a 52-week low of $132.92 and a 52-week high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm's fifty day moving average is $199.28 and its two-hundred day moving average is $189.70. The stock has a market cap of $5.11 trillion, a PE ratio of 32.33, a price-to-earnings-growth ratio of 0.51 and a beta of 2.25.

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, topping 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 company had revenue of $81.62 billion for the quarter, compared to analysts' expectations of $78.42 billion. During the same quarter in the previous year, the company posted $0.81 EPS. The firm's quarterly revenue was up 85.2% on a year-over-year basis. Research analysts forecast that NVIDIA Corporation will post 8.04 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be paid a dividend of $0.25 per share. This is a boost 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 annualized dividend and a yield of 0.5%. NVIDIA's dividend payout ratio is presently 0.61%.

NVIDIA declared that its Board of Directors has authorized a stock repurchase 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 buy up to 1.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on NVDA. Jefferies Financial Group reissued a "buy" rating and issued a $300.00 price target (up from $275.00) on shares of NVIDIA in a research note on Thursday, May 21st. Stifel Nicolaus set a $282.00 price target on shares of NVIDIA and gave the company a "buy" rating in a research note on Thursday, May 21st. Raymond James Financial reissued a "strong-buy" rating and issued a $330.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Cantor Fitzgerald reissued an "overweight" rating and issued a $350.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Finally, William Blair set a $300.00 price target on shares of NVIDIA in a research note on Thursday, March 12th. Three investment analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $305.38.

Insider Activity at NVIDIA

In other news, Director Mark A. Stevens sold 221,682 shares of the business's stock in a transaction dated 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 transaction, the director owned 7,399,771 shares of the company's stock, valued at approximately $1,285,192,227.28. The trade was a 2.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 906,961 shares of company stock worth $162,936,268 over the last 90 days. Corporate insiders own 3.94% of the company's stock.

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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