RFG Advisory LLC Decreases Stock Position in NVIDIA Corporation $NVDA

Key Points

• RFG Advisory LLC cut its NVIDIA stake by 8.8% in the fourth quarter, selling 21,917 shares and leaving it with 227,482 shares worth about $42.4 million.
• NVIDIA reported strong quarterly results, with earnings and revenue both beating estimates and revenue rising 85.2% year over year to $81.62 billion. The company also announced an $80 billion stock buyback program.
• The board approved a much larger dividend, raising the quarterly payout to $0.25 per share from $0.01, while analysts remain broadly bullish with a consensus Buy rating and an average target price of $305.38.

RFG Advisory LLC lessened its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 8.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 227,482 shares of the computer hardware maker's stock after selling 21,917 shares during the quarter. NVIDIA comprises about 0.8% of RFG Advisory LLC's holdings, making the stock its 14th largest holding. RFG Advisory LLC's holdings in NVIDIA were worth $42,425,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC boosted its holdings in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker's stock worth $33,000 after acquiring an additional 67 shares during the period. Spurstone Advisory Services LLC purchased a new position in NVIDIA in the 2nd quarter worth approximately $40,000. Syntax Research Inc. boosted its holdings in NVIDIA by 62.5% in the 4th quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker's stock worth $49,000 after acquiring an additional 100 shares during the period. Sellwood Investment Partners LLC purchased a new position in NVIDIA in the 3rd quarter worth approximately $50,000. Finally, Networth Advisors LLC purchased a new position in NVIDIA in the 4th quarter worth approximately $51,000. Hedge funds and other institutional investors own 65.27% of the company's stock.

Insider Activity at NVIDIA

In other NVIDIA news, Director John Dabiri sold 625 shares of the stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the sale, the director directly owned 14,163 shares of the company's stock, valued at approximately $3,030,882. This represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ajay K. Puri sold 300,000 shares of the firm's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the completion of the transaction, the executive vice president directly owned 3,018,547 shares in the company, valued at $550,130,190.75. This represents a 9.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 906,961 shares of company stock valued at $162,936,268 in the last ninety days. 3.94% of the stock is owned by insiders.

NVIDIA Stock Performance

NVIDIA stock opened at $211.14 on Friday. 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 market cap of $5.11 trillion, a P/E ratio of 32.33, a price-to-earnings-growth ratio of 0.52 and a beta of 2.25. NVIDIA Corporation has a 52 week low of $132.92 and a 52 week high of $236.54. The stock has a 50 day moving average of $199.28 and a 200-day moving average of $189.70.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released 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 firm had revenue of $81.62 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the previous year, the company posted $0.81 earnings per share. The firm's revenue was up 85.2% on a year-over-year basis. On average, analysts expect that NVIDIA Corporation will post 8.04 EPS for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a stock buyback program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

NVIDIA Increases Dividend

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

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Investors are looking ahead to next week’s Computex conference, which could provide a fresh catalyst for NVIDIA’s AI-chip leadership and keep sentiment constructive around the stock. Why Nvidia stock is up around 1% today
• Positive Sentiment: Analysts and commentators continue to point to NVIDIA as the main winner from the AI server boom, with strong demand for its chips, Blackwell products, and broader data-center ecosystem. Jim Cramer names Nvidia as the winner behind Dell rally
• Positive Sentiment: News that NVIDIA is investing heavily in photonics, with billions directed toward next-generation data-center connectivity, suggests the company is trying to extend its AI leadership beyond GPUs into the next bottlenecks in AI infrastructure. Nvidia is investing billions into this emerging technology that could change the AI industry
• Positive Sentiment: Truist raised its price target on NVDA to $307 and kept a Buy rating, reinforcing the view that the company’s strong quarterly results and growth outlook remain intact. NVIDIA Corporation (NVDA) Stock Update: Truist Raises Target to $307 Following Strong Quarter
• Neutral Sentiment: CEO Jensen Huang’s reported advisory-board role at Tsinghua University keeps NVIDIA visible in China-related tech circles, but it is more of a corporate-profile headline than a direct earnings driver. Nvidia chief Jensen Huang to join board of Beijing's Tsinghua University, FT reports
• Negative Sentiment: Director John Dabiri sold 625 shares under a pre-arranged 10b5-1 trading plan, which is routine but can still add to investor caution when the stock is already expensive and volatile. SEC filing for John Dabiri transaction
• Negative Sentiment: Several articles highlight concerns that NVIDIA’s valuation is stretched and that the stock may be struggling to extend gains after a huge AI-driven run, which can weigh on near-term trading. Nvidia And The Reality Of Paying For Perfection

Analysts Set New Price Targets

A number of research firms have weighed in on NVDA. Fundamental Research set a $218.00 price target on NVIDIA in a report on Thursday, February 26th. Zacks Research cut NVIDIA from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Tigress Financial reiterated a "strong-buy" rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a research note on Wednesday. KeyCorp set a $310.00 target price on NVIDIA and gave the company an "overweight" rating in a research note on Thursday, May 21st. Finally, Wall Street Zen upgraded NVIDIA from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 23rd. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $305.38.

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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