NVIDIA Corporation $NVDA is Montecito Bank & Trust's 2nd Largest Position

Key Points

• Montecito Bank & Trust cut its NVIDIA stake by 4.2% in the first quarter but still held 168,044 shares worth about $29.3 million, making NVIDIA its 2nd-largest position and roughly 4.8% of its portfolio.
• NVIDIA’s recent results were strong, with the company beating EPS and revenue estimates and posting revenue growth of 85.2% year over year in its latest quarter.
• Sentiment remains mixed: analysts largely stay bullish with an average Buy rating and a $305.67 average target, while the company is also facing AI-spending concerns and a new lawsuit related to AI training.

Montecito Bank & Trust lessened its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 4.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 168,044 shares of the computer hardware maker's stock after selling 7,297 shares during the period. NVIDIA accounts for approximately 4.8% of Montecito Bank & Trust's portfolio, making the stock its 2nd largest position. Montecito Bank & Trust's holdings in NVIDIA were worth $29,307,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the company. Diversified Enterprises LLC raised its holdings in shares of NVIDIA by 44.2% in the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker's stock valued at $23,798,000 after buying an additional 39,129 shares during the last quarter. ASR Vermogensbeheer N.V. boosted its stake in shares of NVIDIA by 1.8% during the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker's stock worth $591,086,000 after buying an additional 54,877 shares during the period. PMG Family Office LLC purchased a new position in shares of NVIDIA during the third quarter worth about $2,150,000. Storen Legacy Partners LLC purchased a new position in shares of NVIDIA during the fourth quarter worth about $1,350,000. Finally, Weaver Capital Management LLC increased its position in 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 acquiring an additional 4,439 shares during the period. Hedge funds and other institutional investors own 65.27% of the company's stock.

NVIDIA News Roundup

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

NVDA has been the subject of several analyst reports. BNP Paribas Exane upped their price objective on NVIDIA from $270.00 to $285.00 and gave the company an "outperform" rating in a research note on Thursday, May 21st. Oppenheimer reiterated an "outperform" rating and issued a $265.00 target price on shares of NVIDIA in a research note on Thursday, February 26th. China Renaissance assumed coverage on NVIDIA in a report on Friday, June 5th. They issued a "buy" rating and a $319.00 target price on the stock. Tigress Financial restated a "strong-buy" rating and set a $425.00 price target (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and set a $330.00 price target on shares of NVIDIA in a report 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 assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $305.67.

NVIDIA Stock Performance

Shares of NVDA stock opened at $198.32 on Thursday. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The stock has a 50 day simple moving average of $210.80 and a 200-day simple moving average of $192.91. The company has a market cap of $4.80 trillion, a price-to-earnings ratio of 30.37, a price-to-earnings-growth ratio of 0.45 and a beta of 2.22. NVIDIA Corporation has a 12-month low of $149.26 and a 12-month high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share 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 firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the business earned $0.81 earnings per share. The company's revenue for the quarter was up 85.2% compared to the same quarter last year. On average, equities analysts forecast that NVIDIA Corporation will post 8.69 EPS for the current year.

NVIDIA Increases Dividend

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

NVIDIA announced that its Board of Directors has approved a stock buyback program 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 programs are often a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Mark A. Stevens sold 885,000 shares of the company's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares of the company's stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director John Dabiri sold 625 shares of the 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 completion of the transaction, the director owned 14,163 shares of the company's stock, valued at $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 ninety days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. 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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