Heritage Investors Management Corp Reduces Position in NVIDIA Corporation $NVDA

Key Points

• Heritage Investors Management Corp trimmed its NVIDIA stake by 2.2% in the first quarter, though it still held 489,301 shares worth about $85.3 million and made NVDA its 7th-largest position.
• NVIDIA reported another strong quarter, with EPS of $1.87 and revenue of $81.61 billion, both above analyst expectations and up sharply from a year earlier.
• The company also boosted shareholder returns by raising its quarterly dividend to $0.25 per share and approving an $80 billion stock buyback program, signaling confidence in its valuation and outlook.

Heritage Investors Management Corp cut its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.2% during the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 489,301 shares of the computer hardware maker's stock after selling 11,206 shares during the quarter. NVIDIA accounts for 2.6% of Heritage Investors Management Corp's portfolio, making the stock its 7th largest position. Heritage Investors Management Corp's holdings in NVIDIA were worth $85,334,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently modified their holdings of NVDA. State Street Corp raised its holdings in shares of NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker's stock worth $184,911,111,000 after purchasing an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC grew its position in NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker's stock worth $109,446,217,000 after purchasing an additional 3,383,441 shares in the last quarter. Norges Bank acquired a new stake in NVIDIA during the 4th quarter valued at $62,244,133,000. Bank of America Corp DE lifted its holdings in shares of NVIDIA by 1.5% in the fourth quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker's stock valued at $34,909,347,000 after purchasing an additional 2,849,678 shares in the last quarter. Finally, Legal & General Group Plc grew its holdings in shares of NVIDIA by 1.5% during the third 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 buying an additional 2,609,560 shares in the last quarter. Institutional investors own 65.27% of the company's stock.

NVIDIA Stock Up 4.0%

NASDAQ NVDA traded up $8.18 during trading on Friday, hitting $210.96. 148,048,515 shares of the company traded hands, compared to its average volume of 131,546,280. NVIDIA Corporation has a 12 month low of $162.02 and a 12 month high of $236.54. The business has a fifty day simple moving average of $209.48 and a 200 day simple moving average of $194.42. The company has a market capitalization of $5.11 trillion, a P/E ratio of 32.31, a PEG ratio of 0.46 and a beta of 2.21. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts' consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter in the prior year, the firm posted $0.81 EPS. The firm's revenue for the quarter was up 85.2% on a year-over-year basis. As a group, sell-side analysts predict that NVIDIA Corporation will post 8.8 EPS for the current year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's payout ratio is currently 15.31%.

NVIDIA declared that its Board of Directors has approved a stock buyback program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Analysts and commentators said NVDA’s lower valuation and dominant position in AI spending could make recent weakness a buying opportunity, with Bank of America and others highlighting strong long-term upside.
• Positive Sentiment: Reuters reported that Nvidia supplier King Yuan Electronics plans to invest up to $1.4 billion in a U.S. facility, reinforcing the scale of the AI hardware supply chain and ongoing buildout around NVIDIA. Article Title
• Positive Sentiment: NVIDIA also announced a partnership with Fervo to launch an EGS-Twin geothermal platform, adding another AI-related ecosystem collaboration that investors may view as supportive of future growth. Article Title
• Positive Sentiment: Coverage around Nvidia’s strong Q1 results and the company’s upbeat revenue guidance near $91 billion for the next quarter continues to underline that AI demand is still running hot.
• Neutral Sentiment: Media and trading activity around NVDA remains elevated, including options-flow commentary, “most watched” stock chatter, and repeated articles on its AI leadership, which can keep the shares volatile but do not change fundamentals on their own.
• Negative Sentiment: Some reports noted pressure from customers and competitors building in-house AI chips, and there was also discussion of a possible delay to NVIDIA’s next-gen Kyber rack-scale architecture, both of which could raise investor concerns about future margins and timing.

Analyst Ratings Changes

A number of brokerages have commented on NVDA. Jefferies Financial Group restated a "buy" rating and set a $300.00 price objective (up from $275.00) on shares of NVIDIA in a research report on Thursday, May 21st. BNP Paribas Exane raised their price target on shares of NVIDIA from $270.00 to $285.00 and gave the stock an "outperform" rating in a report on Thursday, May 21st. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $255.00 price objective (up from $220.00) on shares of NVIDIA in a research note on Thursday, May 21st. Robert W. Baird set a $500.00 price target on shares of NVIDIA and gave the company an "outperform" rating in a report on Thursday, May 21st. Finally, Wells Fargo & Company reiterated an "overweight" rating and set a $315.00 price objective (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three 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 stock. According to MarketBeat.com, NVIDIA presently has a consensus rating of "Buy" and an average target price of $303.84.

Insider Buying and Selling

In related news, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, 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 SEC, which is available through this link. Also, Director John Dabiri sold 625 shares of the business's stock in a transaction on Wednesday, May 27th. The stock was 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 of the company's stock, valued at approximately $3,030,882. This represents a 4.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 1,901,125 shares of company stock valued at $410,583,015. Company insiders own 3.94% of the company's stock.

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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