NVIDIA Corporation $NVDA Shares Sold by Highland Capital Management LLC

Key Points

• Highland Capital Management reduced its NVIDIA stake by 2.7% in the fourth quarter, selling 9,810 shares and leaving it with 348,803 shares worth about $65.1 million. NVIDIA remains the fund’s fourth-largest holding.
• NVIDIA reported strong quarterly results, beating analyst estimates with $1.87 EPS and $81.62 billion in revenue, while revenue rose 85.2% year over year. The company also continues to benefit from strong AI demand and bullish analyst commentary.
• The company boosted shareholder returns by raising its quarterly dividend to $0.25 per share and authorizing an $80 billion share buyback. Analysts remain mostly positive, with a consensus rating of “Buy” and an average price target of about $305.38.

Highland Capital Management LLC trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 348,803 shares of the computer hardware maker's stock after selling 9,810 shares during the quarter. NVIDIA accounts for approximately 3.2% of Highland Capital Management LLC's portfolio, making the stock its 4th biggest position. Highland Capital Management LLC's holdings in NVIDIA were worth $65,052,000 as of its most recent SEC filing.

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

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Wall Street analysts remain constructive after earnings, with Truist raising its price target to $307 and Tigress Financial lifting its target to $425, citing NVIDIA’s dominant position in AI hardware and strong growth outlook.
• Positive Sentiment: Management’s Taiwan expansion plan is reinforcing the long-term AI demand story. NVIDIA said it plans to spend about $150 billion a year in Taiwan and build a new headquarters there, underscoring confidence in the supply chain and future production capacity.
• Positive Sentiment: Recent commentary continues to frame NVIDIA as a key beneficiary of the AI infrastructure buildout, with articles pointing to ongoing shortages in memory, networking, and power as evidence that demand for NVIDIA’s Blackwell systems remains very strong.
• Neutral Sentiment: Several articles highlight Jensen Huang’s growing influence and visibility, including reports that he may join the advisory board of Tsinghua University and that he is now among the world’s richest people. These are notable but not direct stock catalysts.
• Neutral Sentiment: A number of pieces focus on broader AI ecosystem developments, including Groq’s fundraising, IREN’s Blackwell purchase, and other semiconductor names benefiting from the AI trade. These reinforce sector momentum but are mostly indirect for NVDA.
• Negative Sentiment: Some investors are worried NVIDIA’s valuation has become stretched and that the AI trade may be crowded, with bearish commentary warning that a lot of good news may already be priced in.
• Negative Sentiment: There are also geopolitical and regulatory concerns, including reports of possible NVIDIA chip smuggling to China via Japan, which could revive scrutiny around export controls and China exposure.

NVIDIA Trading Up 0.8%

Shares of NASDAQ:NVDA opened at $214.25 on Friday. NVIDIA Corporation has a 52 week low of $132.92 and a 52 week high of $236.54. The company's 50 day moving average is $198.67 and its two-hundred day moving average is $189.55. 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 company has a market cap of $5.18 trillion, a PE ratio of 32.81, a P/E/G ratio of 0.51 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced 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 net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.62 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the prior year, the firm posted $0.81 EPS. The company's quarterly revenue was up 85.2% compared to the same quarter last year. Equities analysts predict that NVIDIA Corporation will post 8.04 earnings per share for the current fiscal year.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost from NVIDIA's previous quarterly dividend of $0.01. NVIDIA's payout ratio is currently 0.61%.

NVIDIA declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on NVDA shares. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $255.00 price target (up from $220.00) on shares of NVIDIA in a research note on Thursday, May 21st. Rosenblatt Securities reaffirmed a "buy" rating and issued a $325.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. New Street Research dropped their target price on NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. Fundamental Research set a $218.00 target price on NVIDIA in a research report on Thursday, February 26th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $350.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $305.38.

Insider Transactions at NVIDIA

In related news, Director John Dabiri sold 3,004 shares of the company's stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $184.90, for a total value of $555,439.60. Following the completion of the transaction, the director directly owned 14,788 shares of the company's stock, valued at $2,734,301.20. This represents a 16.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Colette Kress sold 42,650 shares of the company's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $174.89, for a total value of $7,459,058.50. Following the completion of the transaction, the chief financial officer directly owned 881,387 shares of the company's stock, valued at $154,145,772.43. This trade represents a 4.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 906,336 shares of company stock valued at $162,802,518 over the last three months. 3.94% of the stock is owned by corporate insiders.

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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