QVT Financial LP Grows Position in NVIDIA Corporation $NVDA

Key Points

• QVT Financial LP sharply increased its NVIDIA stake by 692.6% in the fourth quarter, ending with 136,645 shares valued at about $25.5 million. NVIDIA is now the firm’s 8th-largest holding.
• NVIDIA continues to attract heavy institutional interest, with several large funds boosting or initiating positions and 65.27% of the stock now owned by institutional investors.
• The company posted strong quarterly results, with EPS of $1.87 and revenue of $81.62 billion, both ahead of estimates. NVIDIA also lifted its dividend and authorized an $80 billion share buyback, while analysts maintain a consensus Buy rating.

QVT Financial LP increased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 692.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 136,645 shares of the computer hardware maker's stock after acquiring an additional 119,405 shares during the quarter. NVIDIA comprises about 2.2% of QVT Financial LP's investment portfolio, making the stock its 8th largest holding. QVT Financial LP's holdings in NVIDIA were worth $25,484,000 at the end of the most recent quarter.

A number of other hedge funds have also bought and sold shares of NVDA. Norges Bank bought a new position in NVIDIA during the fourth quarter worth about $62,244,133,000. Cardano Risk Management B.V. increased its position in NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker's stock worth $14,570,119,000 after acquiring an additional 70,283,539 shares during the period. Capital Research Global Investors increased its position in NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker's stock worth $30,855,564,000 after acquiring an additional 22,896,705 shares during the period. Laurel Wealth Advisors LLC increased its position in NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker's stock worth $3,454,534,000 after acquiring an additional 21,725,326 shares during the period. Finally, Danske Bank A S bought a new position in NVIDIA during the third quarter worth about $3,180,313,000. 65.27% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Citic Securities raised their price target on shares of NVIDIA from $242.00 to $315.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Zacks Research downgraded shares of NVIDIA from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Needham & Company LLC reiterated a "buy" rating and set a $270.00 price objective on shares of NVIDIA in a research note on Tuesday, June 2nd. Wall Street Zen upgraded shares of NVIDIA from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 23rd. Finally, BTIG Research began coverage on shares of NVIDIA in a research note on Wednesday, April 15th. They set a "buy" rating on the stock. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, NVIDIA has a consensus rating of "Buy" and a consensus price target of $305.67.

NVIDIA Trading Up 3.5%

Shares of NVDA stock opened at $212.45 on Tuesday. The stock's fifty day moving average price is $207.54 and its two-hundred day moving average price is $191.65. The company has a market cap of $5.14 trillion, a PE ratio of 32.53, a P/E/G ratio of 0.46 and a beta of 2.22. NVIDIA Corporation has a fifty-two week low of $142.03 and a fifty-two week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.

NVIDIA (NASDAQ:NVDA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. The company had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm's revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.81 EPS. Equities analysts predict that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.

NVIDIA Increases Dividend

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

NVIDIA announced that its Board of Directors has initiated a stock 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 repurchase up to 1.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's management believes its stock is undervalued.

Trending Headlines about NVIDIA

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

Insider Activity at NVIDIA

In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction that occurred on 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 sale, 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Colette Kress sold 20,000 shares of NVIDIA stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $174.89, for a total transaction of $3,497,800.00. Following the sale, the chief financial officer directly owned 83,060 shares in the company, valued at $14,526,363.40. This trade represents a 19.41% 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 in the last ninety days. 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.

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.