Weatherly Asset Management L. P. Cuts Position in NVIDIA Corporation $NVDA

Key Points

• Weatherly Asset Management trimmed its NVIDIA stake by 2.2% in the first quarter, though it still held 129,871 shares valued at about $22.7 million. NVIDIA remained one of the firm’s larger positions, accounting for roughly 1.8% of its portfolio.
• NVIDIA’s recent fundamentals were strong, with the company beating fiscal Q1 expectations on both earnings and revenue. Revenue jumped 85.2% year over year to $81.61 billion, underscoring continued demand for its AI and data-center chips.
• Shareholder actions and analyst sentiment remain mixed but broadly positive: NVIDIA launched an $80 billion buyback and raised its quarterly dividend to $0.25, while multiple analysts kept buy ratings and a consensus target around $305.67. At the same time, insiders sold significant stock and there is some near-term risk from AI spending concerns and a lawsuit over AI training.

Weatherly Asset Management L. P. decreased its holdings in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 2.2% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 129,871 shares of the computer hardware maker's stock after selling 2,967 shares during the quarter. NVIDIA accounts for about 1.8% of Weatherly Asset Management L. P.'s holdings, making the stock its 16th largest holding. Weatherly Asset Management L. P.'s holdings in NVIDIA were worth $22,651,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA in the 4th quarter valued at $26,000. Longfellow Investment Management Co. LLC raised its position in NVIDIA by 47.9% during the second 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. Inspire Investing LLC acquired a new position in NVIDIA during the fourth quarter worth $44,000. AlphaCentric Advisors LLC purchased a new position in NVIDIA during the fourth quarter valued at $45,000. Finally, Spurstone Advisory Services LLC purchased a new position in NVIDIA during the second quarter valued at $40,000. 65.27% of the stock is owned by institutional investors and hedge funds.

NVIDIA Stock Performance

NVDA opened at $200.00 on Wednesday. NVIDIA Corporation has a twelve month low of $145.50 and a twelve month high of $236.54. The firm has a market capitalization of $4.84 trillion, a PE ratio of 30.63, a PEG ratio of 0.47 and a beta of 2.22. 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 firm's 50-day moving average price is $210.62 and its 200 day moving average price is $192.80.

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, beating analysts' consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. NVIDIA's quarterly revenue was up 85.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.81 EPS. As a group, sell-side analysts expect that NVIDIA Corporation will post 8.65 EPS for the current fiscal year.

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

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 $0.25 dividend. This is a boost from NVIDIA's previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, June 4th. NVIDIA's payout ratio is 15.31%.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA continues to secure new AI-related partnerships and product momentum, including the launch of its BioNeMo Agent Toolkit for life sciences and additional collaborations around digital twins, robotics, and energy infrastructure. Nvidia launches BioNeMo agent toolkit for AI-driven life sciences research
• Positive Sentiment: Analysts and several articles continue to frame NVIDIA as a long-term winner from AI infrastructure buildout, with some bullish commentary pointing to strong earnings growth, major data-center demand, and attractive valuation relative to its growth. Nvidia: The $1 Trillion Trade Hiding In Plain Sight
• Neutral Sentiment: The company’s latest earnings remain a positive backdrop: NVIDIA beat expectations on both EPS and revenue, with revenue up sharply year over year, reinforcing that fundamentals are still strong despite the stock’s weakness.
• Negative Sentiment: AI spending concerns are weighing on the whole chip complex, with reports that SK Hynix is slowing HBM expansion and traders worrying about the sustainability of debt-funded AI capex. That has hit NVIDIA alongside peers like AMD, Intel, Micron, and SanDisk. Lam Research, Qualcomm, and Western Digital Stocks Trade Down, What You Need To Know
• Negative Sentiment: There is also some company-specific headline risk from a Reuters report that NVIDIA was sued by music company Jamendo over AI training, adding to near-term uncertainty. Nvidia sued by music company Jamendo over AI training

Insider Buying and Selling

In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the business's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares of the company's stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director 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 ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on NVDA shares. Stifel Nicolaus set a $282.00 target price on shares of NVIDIA and gave the stock a "buy" rating in a research note on Thursday, May 21st. BTIG Research assumed coverage on shares of NVIDIA in a research note on Wednesday, April 15th. They issued a "buy" rating on the stock. Itau BBA Securities reiterated a "market perform" rating on shares of NVIDIA in a report on Thursday, February 26th. Rosenblatt Securities reissued a "buy" rating and set a $325.00 target price on shares of NVIDIA in a report on Thursday, May 21st. Finally, Evercore restated an "outperform" rating and issued a $413.00 target price (up from $352.00) on shares of NVIDIA in a research report on Thursday, May 21st. 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 an average rating of "Buy" and a consensus target price of $305.67.

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.

Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA - Free Report).

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.