Founders Financial Securities LLC Reduces Stock Position in NVIDIA Corporation $NVDA

Key Points

• Founders Financial Securities LLC reduced its NVIDIA stake by 7.5% in the first quarter, selling 14,222 shares and leaving it with 176,415 shares valued at about $32.4 million.
• NVIDIA reported strong quarterly results, beating EPS and revenue estimates with $1.87 EPS on $81.61 billion in revenue, while revenue jumped 85.2% year over year.
• The company announced a much larger dividend and a new $80 billion share buyback, though the stock was trading down 0.9% at the time of the report amid mixed market sentiment.

Founders Financial Securities LLC decreased its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 7.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 176,415 shares of the computer hardware maker's stock after selling 14,222 shares during the period. NVIDIA comprises about 2.0% of Founders Financial Securities LLC's holdings, making the stock its 9th largest position. Founders Financial Securities LLC's holdings in NVIDIA were worth $32,445,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also bought and sold shares of NVDA. Diversified Enterprises LLC grew its position in 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 acquiring an additional 39,129 shares during the last quarter. ASR Vermogensbeheer N.V. lifted its holdings in shares of NVIDIA by 1.8% in the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker's stock worth $591,086,000 after acquiring an additional 54,877 shares during the last quarter. PMG Family Office LLC bought a new stake in shares of NVIDIA in the 3rd quarter worth approximately $2,150,000. Storen Legacy Partners LLC purchased a new stake in shares of NVIDIA in the 4th quarter valued at $1,350,000. Finally, Weaver Capital Management LLC boosted its stake in shares of NVIDIA by 5.5% in the 4th 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 in the last quarter. Institutional investors own 65.27% of the company's stock.

NVIDIA Trading Down 0.9%

Shares of NVDA opened at $198.32 on Thursday. The stock has a market capitalization of $4.80 trillion, a P/E ratio of 30.37, a PEG ratio of 0.45 and a beta of 2.22. 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 has a fifty day simple moving average of $210.80 and a two-hundred day simple moving average of $192.91. NVIDIA Corporation has a twelve month low of $149.26 and a twelve month high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) 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 96.94%. The business had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter last year, the firm earned $0.81 EPS. The company's revenue was up 85.2% on a year-over-year basis. On average, research analysts anticipate that NVIDIA Corporation will post 8.69 EPS for the current year.

NVIDIA Increases Dividend

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

NVIDIA declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase 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 shares are undervalued.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to expand its AI ecosystem, including new BioNeMo and agentic AI tools for life sciences, which supports the long-term growth story. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Wall Street commentary remains constructive, with several analysts still calling NVDA a must-own AI leader despite the recent tech sell-off. NVIDIA (NVDA) Remains a Must-Own for Bernstein Despite Tech Sell-Off
• Neutral Sentiment: The latest earnings report was strong, with NVIDIA beating EPS and revenue estimates and posting very rapid year-over-year growth, providing a solid fundamental backdrop.
• Negative Sentiment: AI spending concerns and a memory-chip selloff are weighing on the entire semiconductor group, pressuring NVIDIA as investors question the pace of future demand. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: Reuters reported that NVIDIA was sued by music company Jamendo over AI training, adding legal uncertainty and headline risk. Nvidia sued by music company Jamendo over AI training

Analysts Set New Price Targets

A number of equities analysts recently commented on NVDA shares. KeyCorp set a $310.00 target price on shares of NVIDIA and gave the stock an "overweight" rating in a research report on Thursday, May 21st. Needham & Company LLC restated a "buy" rating and set a $270.00 price target on shares of NVIDIA in a research report on Tuesday, June 2nd. Evercore reaffirmed an "outperform" rating and set a $413.00 price objective (up from $352.00) on shares of NVIDIA in a research note on Thursday, May 21st. DA Davidson reiterated a "buy" rating and issued a $300.00 price objective on shares of NVIDIA in a report on Monday, June 1st. Finally, Wolfe Research reissued an "outperform" rating and issued a $275.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $305.67.

Insider Activity at NVIDIA

In other news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction that occurred on 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 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last 90 days. Company 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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