Main Street Research LLC Decreases Stock Position in NVIDIA Corporation $NVDA

Key Points

• Main Street Research slightly reduced its NVIDIA stake by 0.9% in Q4, but the stock still remains its largest holding at 6.2% of the portfolio.
• Insider selling was notable, with directors Stephen C. Neal and Mark A. Stevens selling large blocks of shares; over the last 90 days, insiders sold nearly 1.9 million shares worth about $387.4 million.
• NVIDIA continues to post strong fundamentals, recently beating earnings and revenue estimates, while also announcing an $80 billion buyback and raising its quarterly dividend to $0.25 per share.

Main Street Research LLC trimmed its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 0.9% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 595,844 shares of the computer hardware maker's stock after selling 5,714 shares during the period. NVIDIA accounts for 6.2% of Main Street Research LLC's portfolio, making the stock its largest holding. Main Street Research LLC's holdings in NVIDIA were worth $111,125,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of NVDA. Longfellow Investment Management Co. LLC raised its position in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock valued at $33,000 after purchasing an additional 67 shares during the period. Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA during the 2nd quarter valued at $40,000. Syntax Research Inc. raised its position in shares of NVIDIA by 62.5% during the 4th quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock valued at $49,000 after purchasing an additional 100 shares during the period. Sellwood Investment Partners LLC bought a new stake in shares of NVIDIA during the 3rd quarter valued at $50,000. Finally, Networth Advisors LLC bought a new stake in shares of NVIDIA during the 4th quarter valued at $51,000. 65.27% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director directly owned 116,135 shares of the company's stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark A. Stevens sold 500,000 shares of NVIDIA stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the transaction, the director directly owned 6,399,771 shares of the company's stock, valued at approximately $1,406,861,658.93. This represents a 7.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,922,461 shares of company stock worth $387,385,083. Insiders own 3.94% of the company's stock.

NVIDIA Stock Performance

Shares of NASDAQ:NVDA opened at $205.10 on Monday. NVIDIA Corporation has a 52 week low of $140.85 and a 52 week high of $236.54. The stock has a market capitalization of $4.96 trillion, a P/E ratio of 31.41, a PEG ratio of 0.46 and a beta of 2.22. The firm has a fifty day simple moving average of $203.37 and a two-hundred day simple moving average of $190.58. The company has a quick ratio of 2.85, a current ratio of 3.44 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, 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 $81.62 billion during the quarter, compared to analysts' expectations of $78.42 billion. During the same period last year, the company posted $0.81 EPS. The business's revenue was up 85.2% on a year-over-year basis. On average, analysts expect that NVIDIA Corporation will post 8.61 earnings per share for the current fiscal year.

NVIDIA declared that its board has approved a share repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

NVIDIA Increases Dividend

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

Key Stories Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to win bullish analyst coverage, with firms like China Renaissance and KeyBanc reiterating optimistic views and high price targets, reinforcing expectations for further upside. China Renaissance rating update
• Positive Sentiment: NVIDIA’s ecosystem is expanding, including a major AI partnership with Taiwan Semiconductor and new collaborations across software, memory, and connectivity, which supports future demand for its AI platforms. Taiwan Semiconductor Manufacturing Signs Major AI Deal With Nvidia
• Positive Sentiment: Jensen Huang’s trip to South Korea has highlighted new growth avenues, including robotics and deeper supplier relationships, adding to NVIDIA’s long-term growth narrative. Nvidia CEO sees robotics as next major sector in South Korea
• Positive Sentiment: Recent commentary says NVIDIA’s Blackwell ramp, CUDA software moat, and AI inference exposure keep the growth story strong, helping investors view pullbacks as buyable. Analyst Picks NVIDIA Over Every Other AI Chip Stock Right Now
• Positive Sentiment: The company’s new PC chip push and RTX Spark product could open another growth lane beyond data centers, even if the market is still digesting the near-term implications. Nvidia's PC Chip Reveal Obscures a Bigger Catalyst for the Stock
• Neutral Sentiment: NVIDIA recently reported strong quarterly results, beat revenue and EPS estimates, and authorized an $80 billion buyback plus a much larger dividend, but those positives are already well known and may be partly priced in. NVIDIA insider trades report
• Negative Sentiment: Broad semiconductor weakness and softer risk appetite after strong jobs data have pressured AI chip stocks, with investors questioning whether the sector’s valuation has gotten ahead of fundamentals. Nvidia stock crashes another 3% today: why Computex failed to spark a rally
• Negative Sentiment: Senator Elizabeth Warren’s invitation for Jensen Huang to testify on China chip sales adds regulatory and export-control overhang around NVIDIA’s business in China. Warren invites Nvidia CEO Jensen Huang to Senate hearing on China AI chip sales
• Negative Sentiment: Director Mark Stevens’ large share sale is also weighing on sentiment, since insider selling can make investors cautious even when the underlying business remains strong. NVIDIA insider trading filing

Analysts Set New Price Targets

A number of analysts have issued reports on the stock. Rothschild & Co Redburn lifted their price target on shares of NVIDIA from $280.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, May 26th. Wall Street Zen upgraded shares of NVIDIA from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 23rd. William Blair reiterated an "outperform" rating on shares of NVIDIA in a report on Tuesday, June 2nd. DA Davidson reiterated a "buy" rating and issued a $300.00 price target on shares of NVIDIA in a report on Monday, June 1st. Finally, Tigress Financial reiterated a "strong-buy" rating and issued a $425.00 price target (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Three equities research 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 stock. According to MarketBeat.com, NVIDIA has an average rating of "Buy" and an average target price of $305.67.

About NVIDIA

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.