Scge Management L.P. Grows Holdings in NVIDIA Corporation $NVDA

Key Points

• Scge Management L.P. boosted its NVIDIA stake by 45.8% in the fourth quarter, buying 1,044,000 additional shares. NVIDIA is now its largest holding, making up 14.1% of the fund’s portfolio.
• Insider selling was notable, with directors Stephen C. Neal and Mark A. Stevens selling shares worth about $3.34 million and $109.9 million, respectively. Over the last 90 days, insiders sold 1.62 million shares total.
• NVIDIA continues to show strong fundamentals, reporting $1.87 EPS and $81.62 billion in quarterly revenue, both above expectations. The company also authorized an $80 billion share buyback and raised its quarterly dividend to $0.25 from $0.01.

Scge Management L.P. increased its stake in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 45.8% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 3,325,000 shares of the computer hardware maker's stock after purchasing an additional 1,044,000 shares during the quarter. NVIDIA accounts for 14.1% of Scge Management L.P.'s holdings, making the stock its biggest holding. Scge Management L.P.'s holdings in NVIDIA were worth $620,112,000 as of its most recent filing with the SEC.

Several other hedge funds also recently bought and sold shares of the business. Joule Financial LLC lifted its holdings in shares of NVIDIA by 2.2% in the 3rd quarter. Joule Financial LLC now owns 2,308 shares of the computer hardware maker's stock worth $431,000 after buying an additional 50 shares during the period. Presidio Capital Management LLC lifted its holdings in shares of NVIDIA by 0.4% in the 4th quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock worth $2,823,000 after buying an additional 53 shares during the period. LMG Wealth Partners LLC lifted its holdings in shares of NVIDIA by 0.7% in the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker's stock worth $1,427,000 after buying an additional 53 shares during the period. Vision Financial Markets LLC lifted its holdings in shares of NVIDIA by 1.2% in the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock worth $866,000 after buying an additional 53 shares during the period. Finally, IMG Wealth Management Inc. lifted its holdings in shares of NVIDIA by 1.4% in the 3rd quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock worth $713,000 after buying an additional 54 shares during the period. Institutional investors own 65.27% of the company's stock.

Insider Transactions at NVIDIA

In other news, Director Stephen C. Neal sold 15,500 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the transaction, the director directly owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Mark A. Stevens sold 500,000 shares of the firm's stock in a transaction dated 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 owned 6,399,771 shares of the company's stock, valued at approximately $1,406,861,658.93. The trade was a 7.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 1,619,457 shares of company stock valued at $332,073,643. 3.94% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. President Capital upped their target price on NVIDIA from $280.00 to $295.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. The Goldman Sachs Group reiterated a "buy" rating and issued a $285.00 target price (up from $250.00) on shares of NVIDIA in a report on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $255.00 target price (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. China Renaissance assumed coverage on NVIDIA in a report on Friday, June 5th. They issued a "buy" rating and a $319.00 target price for the company. Finally, BTIG Research initiated coverage on NVIDIA in a report on Wednesday, April 15th. They issued a "buy" rating for the company. 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, the stock presently has a consensus rating of "Buy" and a consensus target price of $305.67.

NVIDIA Trading Up 3.5%

NVIDIA stock opened at $212.45 on Tuesday. The stock has a 50-day moving average of $207.54 and a two-hundred day moving average of $191.65. 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 Corporation has a one year low of $142.03 and a one year high of $236.54. The stock has a market cap of $5.14 trillion, a PE ratio of 32.53, a price-to-earnings-growth ratio of 0.46 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results 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 return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.62 billion during the quarter, compared to analysts' expectations of $78.42 billion. During the same period last year, the business posted $0.81 earnings per share. The firm's revenue was up 85.2% compared to the same quarter last year. On average, research analysts anticipate that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.

NVIDIA declared that its Board of Directors has initiated a stock repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

NVIDIA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Thursday, June 4th will be paid a $0.25 dividend. The ex-dividend date is Thursday, June 4th. This is a positive change from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is 15.31%.

Key Stories Impacting 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

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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