RNC Capital Management LLC Sells 3,167 Shares of NVIDIA Corporation $NVDA

Key Points

• RNC Capital Management LLC trimmed its NVIDIA stake by 1.8% in the fourth quarter, selling 3,167 shares and ending with 168,329 shares valued at about $31.4 million.
• NVIDIA reported strong fiscal results, with quarterly EPS of $1.87 and revenue of $81.62 billion, both above analyst estimates and up 85.2% year over year.
• The company also announced a $80 billion share buyback and boosted its quarterly dividend to $0.25 from $0.01, signaling confidence in its cash flow and outlook.

RNC Capital Management LLC decreased its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 1.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 168,329 shares of the computer hardware maker's stock after selling 3,167 shares during the quarter. RNC Capital Management LLC's holdings in NVIDIA were worth $31,393,000 at the end of the most recent quarter.

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

NVIDIA Price Performance

NVDA stock opened at $214.25 on Friday. The company has a fifty day simple moving average of $198.67 and a two-hundred day simple moving average of $189.55. The firm has a market capitalization of $5.18 trillion, a P/E ratio of 32.81, a price-to-earnings-growth ratio of 0.51 and a beta of 2.25. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. NVIDIA Corporation has a 52 week low of $132.92 and a 52 week high of $236.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.62 billion during 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 business's revenue was up 85.2% on a year-over-year basis. During the same quarter last year, the business earned $0.81 EPS. Analysts anticipate that NVIDIA Corporation will post 8.04 earnings per share for the current fiscal year.

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

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 given a $0.25 dividend. This is an increase 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 dividend on an annualized basis and a yield of 0.5%. NVIDIA's dividend payout ratio is currently 0.61%.

Insider Buying and Selling

In related news, CFO Colette Kress sold 20,000 shares of the stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $174.89, for a total value of $3,497,800.00. Following the sale, the chief financial officer directly owned 83,060 shares of the company's stock, valued at $14,526,363.40. This represents a 19.41% 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 3,004 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $184.90, for a total transaction of $555,439.60. Following the completion of the sale, the director directly owned 14,788 shares in the company, valued at $2,734,301.20. This trade represents a 16.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 906,336 shares of company stock worth $162,802,518 over the last three months. 3.94% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Piper Sandler reissued an "overweight" rating on shares of NVIDIA in a report on Thursday, February 26th. DA Davidson increased their price objective on shares of NVIDIA from $250.00 to $300.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Rosenblatt Securities reiterated a "buy" rating and set a $325.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Seaport Research Partners increased their price objective on shares of NVIDIA from $140.00 to $180.00 and gave the company a "sell" rating in a research report on Thursday, May 21st. Finally, New Street Research lowered their price objective on shares of NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $305.38.

More 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.

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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