NVIDIA Corporation $NVDA Shares Sold by Next Century Growth Investors LLC

Key Points

• Next Century Growth Investors LLC reduced its NVIDIA stake by 2.8% in the fourth quarter, selling 3,574 shares and leaving it with 124,203 shares valued at about $23.2 million.
• NVIDIA continues to draw strong support from institutions and analysts: 65.27% of the stock is held by institutional investors and hedge funds, and the consensus analyst rating remains a Buy with a target price of $305.67.
• The company reported a strong quarter, beating earnings and revenue estimates with EPS of $1.87 on $81.62 billion in revenue, while also announcing an $80 billion share buyback and a higher quarterly dividend of $0.25 per share.

Next Century Growth Investors LLC trimmed its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.8% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 124,203 shares of the computer hardware maker's stock after selling 3,574 shares during the quarter. NVIDIA comprises 1.6% of Next Century Growth Investors LLC's investment portfolio, making the stock its 14th biggest holding. Next Century Growth Investors LLC's holdings in NVIDIA were worth $23,164,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Joule Financial LLC lifted its position in NVIDIA by 2.2% during the 3rd quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker's stock worth $431,000 after acquiring an additional 50 shares during the period. Presidio Capital Management LLC lifted its position in NVIDIA by 0.4% during the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock worth $2,823,000 after acquiring an additional 53 shares during the period. LMG Wealth Partners LLC lifted its position in NVIDIA by 0.7% during the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock worth $1,427,000 after acquiring an additional 53 shares during the period. Vision Financial Markets LLC lifted its position in NVIDIA by 1.2% during the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock worth $866,000 after acquiring an additional 53 shares during the period. Finally, IMG Wealth Management Inc. lifted its position in NVIDIA by 1.4% during the 3rd quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock worth $713,000 after acquiring an additional 54 shares during the period. 65.27% of the stock is owned by institutional investors and hedge funds.

More NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA said it plans to raise about $20 billion through its first U.S. investment-grade bond offering since 2021. Investors appear to view the move as a sign of confidence in future cash flows and a way to fund massive AI-chip and infrastructure investments without stressing the balance sheet. Reuters article
• Positive Sentiment: The bond-sale news also reinforced the view that demand for NVIDIA’s AI hardware remains extremely strong, since the company is tapping debt markets to help meet capital needs tied to its AI leadership. CNBC article
• Positive Sentiment: Shares also benefited from a broader semiconductor and tech rally, with chip stocks and AI names trading strongly after improved market sentiment and reports of easing geopolitical tensions. 247WallSt article

Analysts Set New Price Targets

NVDA has been the subject of a number of recent research reports. Citigroup initiated coverage on NVIDIA in a research report on Wednesday, April 15th. They set a "buy" rating for the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of NVIDIA in a research report on Friday, April 10th. Barclays reaffirmed an "overweight" rating on shares of NVIDIA in a research report on Thursday, May 21st. Craig Hallum increased their price objective on NVIDIA from $245.00 to $275.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Finally, Wolfe Research reissued an "outperform" rating and set a $275.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $305.67.

NVIDIA Stock Performance

Shares of NVDA stock opened at $212.45 on Tuesday. The company has a market cap of $5.14 trillion, a price-to-earnings ratio of 32.53, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22. The stock has a 50 day simple moving average of $207.54 and a 200-day simple moving average of $191.65. NVIDIA Corporation has a 12-month low of $142.03 and a 12-month high of $236.54. 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 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. The business had revenue of $81.62 billion during the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company's revenue for the quarter was up 85.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.81 EPS. On average, equities analysts forecast that NVIDIA Corporation will post 8.65 EPS for the current year.

NVIDIA Increases Dividend

The company also recently disclosed 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. This represents a $1.00 annualized dividend and a 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 (DPR) is 15.31%.

NVIDIA announced that its Board of Directors has approved a share repurchase 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 reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Insider Transactions at NVIDIA

In related news, Director Mark A. Stevens sold 500,000 shares of the firm's stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $219.83, for a total value of $109,915,000.00. Following the completion of the transaction, the director directly owned 6,399,771 shares of the company's stock, valued at $1,406,861,658.93. This trade represents a 7.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Aarti S. Shah sold 19,000 shares of the firm's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $176.71, for a total value of $3,357,490.00. Following the completion of the transaction, the director directly owned 36,007 shares of the company's stock, valued at $6,362,796.97. The trade was a 34.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,619,457 shares of company stock worth $332,073,643 over the last ninety days. 3.94% of the stock is currently owned by corporate insiders.

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.

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