QVT Financial LP Boosts Position in NVIDIA Corporation $NVDA

QVT Financial LP boosted its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA) by 692.6% during the fourth quarter, HoldingsChannel reports. The fund owned 136,645 shares of the computer hardware maker’s stock after purchasing an additional 119,405 shares during the quarter. NVIDIA comprises 2.2% of QVT Financial LP’s holdings, making the stock its 8th largest position. QVT Financial LP’s holdings in NVIDIA were worth $25,484,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC grew its holdings in NVIDIA by 47.9% during 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 last quarter. Spurstone Advisory Services LLC acquired a new stake in shares of NVIDIA in the second quarter valued at about $40,000. AlphaCentric Advisors LLC acquired a new stake in shares of NVIDIA in the fourth quarter valued at about $45,000. Syntax Research Inc. increased its stake in shares of NVIDIA by 62.5% in the fourth quarter. Syntax Research Inc. now owns 260 shares of the computer hardware maker’s stock valued at $49,000 after buying an additional 100 shares during the period. Finally, Networth Advisors LLC acquired a new stake in shares of NVIDIA in the fourth quarter valued at about $51,000. 65.27% of the stock is owned by institutional investors.

NVIDIA Trading Up 3.5%

NASDAQ:NVDA opened at $212.45 on Tuesday. The firm’s fifty day moving average is $207.54 and its 200-day moving average is $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 52 week low of $142.03 and a 52 week high of $236.54. The firm has a market cap of $5.14 trillion, a P/E ratio of 32.53, a P/E/G ratio of 0.46 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA) last posted 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. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.62 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the firm posted $0.81 EPS. The company’s quarterly revenue was up 85.2% on a year-over-year basis. Equities analysts expect that NVIDIA Corporation will post 8.65 earnings per share for the current year.

NVIDIA declared that its board has initiated a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

NVIDIA Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Thursday, June 4th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, June 4th. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is presently 15.31%.

Insider Activity at NVIDIA

In related news, Director Mark A. Stevens sold 500,000 shares of the business’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $219.83, for a total transaction of $109,915,000.00. Following the transaction, the director owned 6,399,771 shares in the company, valued at $1,406,861,658.93. The trade was a 7.25% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Ajay K. Puri sold 300,000 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $182.25, for a total transaction of $54,675,000.00. Following the transaction, the executive vice president owned 3,018,547 shares in the company, valued at $550,130,190.75. The trade was a 9.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,619,457 shares of company stock worth $332,073,643 over the last ninety days. 3.94% of the stock is owned by corporate insiders.

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

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on NVDA shares. William Blair reissued an “outperform” rating on shares of NVIDIA in a research note on Tuesday, June 2nd. Mizuho set a $300.00 price target on NVIDIA in a research note on Thursday, May 21st. DZ Bank reissued a “buy” rating on shares of NVIDIA in a research note on Thursday, May 21st. Oppenheimer reaffirmed an “outperform” rating and issued a $265.00 price objective on shares of NVIDIA in a research note on Thursday, February 26th. Finally, Evercore reaffirmed an “outperform” rating and issued a $413.00 price objective (up from $352.00) on shares of NVIDIA in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, NVIDIA presently has a consensus rating of “Buy” and an average 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.