Urban Wealth Management LLC Makes New Investment in NVIDIA Corporation $NVDA

Key Points

• Urban Wealth Management LLC opened a new position in NVIDIA during the fourth quarter, buying 34,096 shares valued at about $6.36 million. The stake now represents roughly 5.9% of its portfolio and is its second-largest holding.
• NVIDIA reported a strong quarter, with EPS of $1.87 and revenue of $81.62 billion, both above analyst estimates. Revenue jumped 85.2% year over year, underscoring continued demand for its AI chips.
• The company also announced a huge $80 billion share repurchase program and raised its quarterly dividend from $0.01 to $0.25 per share, signaling confidence and a stronger capital-return policy.

Urban Wealth Management LLC bought a new position in NVIDIA Corporation (NASDAQ:NVDA - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 34,096 shares of the computer hardware maker's stock, valued at approximately $6,359,000. NVIDIA makes up approximately 5.9% of Urban Wealth Management LLC's portfolio, making the stock its 2nd biggest holding.

Several other hedge funds have also added to or reduced their stakes in the stock. Joule Financial LLC boosted its holdings in NVIDIA by 2.2% in the third 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 in the last quarter. Presidio Capital Management LLC lifted its holdings in shares of NVIDIA by 0.4% during the fourth quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker's stock valued at $2,823,000 after purchasing an additional 53 shares in the last quarter. Vision Financial Markets LLC lifted its holdings in shares of NVIDIA by 1.2% during the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker's stock valued at $866,000 after purchasing an additional 53 shares in the last quarter. IMG Wealth Management Inc. lifted its holdings in shares of NVIDIA by 1.4% during the third quarter. IMG Wealth Management Inc. now owns 3,820 shares of the computer hardware maker's stock valued at $713,000 after purchasing an additional 54 shares in the last quarter. Finally, Cyr Financial Inc. lifted its holdings in shares of NVIDIA by 0.7% during the third quarter. Cyr Financial Inc. now owns 7,737 shares of the computer hardware maker's stock valued at $1,444,000 after purchasing an additional 54 shares in the last quarter. 65.27% of the stock is owned by institutional investors.

NVIDIA Stock Down 1.8%

NVDA stock opened at $219.51 on Friday. NVIDIA Corporation has a fifty-two week low of $129.16 and a fifty-two week high of $236.54. The business's 50-day moving average is $195.51 and its two-hundred day moving average is $188.87. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.24 and a current ratio of 3.91. The company has a market cap of $5.32 trillion, a price-to-earnings ratio of 33.62, a P/E/G ratio of 0.69 and a beta of 2.25.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts' consensus estimates of $1.76 by $0.11. The company had revenue of $81.62 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a return on equity of 110.48% and a net margin of 62.97%.NVIDIA's revenue was up 85.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.81 earnings per share. As a group, analysts forecast that NVIDIA Corporation will post 7.89 earnings per share for the current year.

NVIDIA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Thursday, June 4th will be given 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 dividend on an annualized basis and a yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is currently 0.82%.

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

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record Q1 revenue and EPS topped estimates, showing demand for NVIDIA’s AI chips remains exceptional.
• Positive Sentiment: Data center revenue surged again, confirming NVIDIA’s dominance in AI infrastructure and compute.
• Positive Sentiment: The company added an $80 billion buyback and sharply increased its dividend, signaling confidence and capital return strength.
• Positive Sentiment: NVIDIA’s venture arm backed French quantum startup Alice & Bob, reinforcing its strategic push into emerging compute technologies. Article Title
• Neutral Sentiment: Analysts lifted price targets across the board, but the stock’s response has been restrained as expectations remain extremely high.
• Neutral Sentiment: NVIDIA is reorganizing reporting into Data Center and Edge Computing, which better reflects the business but may make comparisons harder near term.
• Negative Sentiment: The company’s Q2 outlook excludes any Data Center compute revenue from China, leaving a meaningful market out of the near-term forecast.
• Negative Sentiment: Some investors remain cautious that AI competition is intensifying and that NVIDIA may be priced for perfection after a huge run.

Analyst Ratings Changes

A number of brokerages have recently issued reports on NVDA. Tigress Financial reaffirmed a "strong-buy" rating and set a $360.00 price target (up from $350.00) on shares of NVIDIA in a report on Thursday, March 5th. Itau BBA Securities reaffirmed a "market perform" rating on shares of NVIDIA in a report on Thursday, February 26th. Melius Research set a $400.00 price target on NVIDIA in a report on Thursday. Wells Fargo & Company reaffirmed an "overweight" rating and set a $315.00 price target (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. Finally, Seaport Research Partners upped their price target on NVIDIA from $140.00 to $180.00 and gave the company a "sell" rating in a report on Thursday. Four investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $298.58.

Insiders Place Their Bets

In other NVIDIA news, CFO Colette Kress sold 20,000 shares of the company's stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $174.89, for a total value of $3,497,800.00. Following the completion of the sale, the chief financial officer owned 83,060 shares in the company, valued at $14,526,363.40. This represents a 19.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Aarti S. Shah sold 19,000 shares of the company's stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $176.71, for a total value of $3,357,490.00. Following the completion of the sale, the director owned 36,007 shares of the company's stock, valued at approximately $6,362,796.97. The trade was a 34.54% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 906,336 shares of company stock valued at $162,802,518. 4.17% 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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