FengHe Fund Management Pte. Ltd. Cuts Position in NVIDIA Corporation $NVDA

Key Points

• FengHe Fund Management sharply cut its NVIDIA stake by 87.8% in the fourth quarter, selling 195,400 shares and leaving it with 27,100 shares worth about $5.05 million.
• NVIDIA’s latest earnings beat expectations, with $1.87 EPS on $81.62 billion revenue, while revenue jumped 85.2% year over year and analysts kept a broadly bullish view with a consensus rating of Buy.
• The company boosted shareholder returns by announcing a quarterly dividend increase to $0.25 per share and approving an $80 billion share repurchase program, even as some investors and insiders have sold shares recently.

FengHe Fund Management Pte. Ltd. decreased its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 87.8% during the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 27,100 shares of the computer hardware maker's stock after selling 195,400 shares during the period. FengHe Fund Management Pte. Ltd.'s holdings in NVIDIA were worth $5,054,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the business. Diversified Enterprises LLC raised its stake in shares of NVIDIA by 44.2% during the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker's stock valued at $23,798,000 after purchasing an additional 39,129 shares during the period. PMG Family Office LLC purchased a new stake in shares of NVIDIA during the third quarter valued at approximately $2,150,000. Oak Ridge Investments LLC raised its stake in shares of NVIDIA by 2.2% during the third quarter. Oak Ridge Investments LLC now owns 970,860 shares of the computer hardware maker's stock valued at $181,143,000 after purchasing an additional 20,559 shares during the period. Weaver Capital Management LLC raised its stake in shares of NVIDIA by 5.5% during the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker's stock valued at $15,893,000 after purchasing an additional 4,439 shares during the period. Finally, Circle Wealth Management LLC raised its stake in shares of NVIDIA by 16.1% during the third quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker's stock valued at $20,111,000 after purchasing an additional 14,936 shares during the period. Hedge funds and other institutional investors own 65.27% of the company's stock.

Analyst Ratings Changes

A number of research firms have recently issued reports on NVDA. Evercore reiterated an "outperform" rating and set a $413.00 price objective (up from $352.00) on shares of NVIDIA in a research note on Thursday. Truist Financial lifted their price objective on shares of NVIDIA from $287.00 to $307.00 and gave the company a "buy" rating in a research note on Thursday. KeyCorp set a $310.00 price objective on shares of NVIDIA and gave the company an "overweight" rating in a research note on Thursday. Craig Hallum lifted their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the company a "buy" rating in a research note on Thursday. Finally, BTIG Research began coverage on shares of NVIDIA in a research note on Wednesday, April 15th. They set a "buy" rating on the stock. Four analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $298.58.

Trending Headlines about NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record revenue, earnings and cash flow, plus a major beat in data center sales, reinforce NVIDIA’s AI leadership and suggest demand remains very strong.
• Positive Sentiment: The $80 billion buyback and much higher dividend signal management confidence and should support shareholder returns.
• Positive Sentiment: Multiple analysts raised price targets after the report, reflecting continued Wall Street optimism about NVDA’s long-term growth. Article Title
• Neutral Sentiment: Management’s new outlook excludes China data-center revenue, which leaves some uncertainty around a key growth market.
• Neutral Sentiment: The stock had already run up sharply into earnings, so the market may be using the report as a chance to take profits or wait for even more upside from next-generation Vera Rubin products.
• Negative Sentiment: Investor expectations were so high that even a blockbuster quarter failed to spark a rally, suggesting the stock may be priced for perfection and vulnerable to near-term volatility.

NVIDIA Stock Down 1.8%

NVDA stock opened at $219.51 on Friday. NVIDIA Corporation has a twelve month low of $129.16 and a twelve month high of $236.54. The company has a current ratio of 3.91, a quick ratio of 3.24 and a debt-to-equity ratio of 0.05. The company has a market capitalization of $5.32 trillion, a P/E ratio of 33.62, a PEG ratio of 0.69 and a beta of 2.25. The firm has a 50 day simple moving average of $195.51 and a 200-day simple moving average of $188.87.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 110.48%. The business had revenue of $81.62 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter last year, the company earned $0.81 earnings per share. The business's quarterly revenue was up 85.2% compared to the same quarter last year. On average, equities research analysts predict that NVIDIA Corporation will post 7.89 earnings per share 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 given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, June 4th. This is an increase from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA's dividend payout ratio is 0.82%.

NVIDIA declared that its board has approved a share 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 reacquire up to 1.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at NVIDIA

In other news, Director Mark A. Stevens sold 221,682 shares of the firm'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 owned 7,399,771 shares of the company's stock, valued at approximately $1,285,192,227.28. This trade represents a 2.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Colette Kress sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $174.89, for a total transaction of $3,497,800.00. Following the sale, the chief financial officer directly owned 83,060 shares of the company's stock, valued at $14,526,363.40. The trade was a 19.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 906,336 shares of company stock valued at $162,802,518. Corporate insiders own 4.17% 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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