Jensen Huang, CEO of Nvidia (NVDA), sold shares worth $50 million of the semiconductor company last week as part of a prearranged 10b5-1 trading plan disclosed in March. The plan allows him to sell up to 6 million shares through year-end.
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On Friday alone, Huang sold 75,000 shares for $12.94 million. Earlier in the week, he offloaded 225,000 shares worth around $37 million, bringing his total proceeds this week to nearly $50 million.
It’s important to note that a corporate insider’s stock sale doesn’t always signal caution about the company’s future potential. They may sell shares for various reasons, including financial or personal obligations. In this case, it seems Huang is capitalizing on the recent rally in Nvidia shares. He is not offloading his entire stake in the company. He still has millions of shares left under the 10b5-1 trading plan.
CEO Takes Profits as Stock Hits 52-Week High
The sale comes as Nvidia stock continues its strong run. The stock has climbed more than 75% over the past three months, driven by the AI boom. The chipmaker recently hit a 52-week high after it announced its plans to resume H20 chip sales to China.
Moreover, on July 9, Nvidia became the first U.S. public company to hit a $4 trillion market cap, fueled by booming demand for AI chips, surpassing both Microsoft (MSFT) and Apple (AAPL).
A Closer Look at the Insider’s Transactions
According to the Form 4 filed with the SEC on July 18, Huang sold 75,000 NVDA shares in multiple tranches at weighted average prices ranging between $169.7 and $173.6 per share.
NVDA stock currently has a Very Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $438 million, undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is NVDA a Good Buy Right Now?
On TipRanks, NVDA stock has a Strong Buy consensus rating based on 34 Buys, three Hold ratings and one Sell rating. Also, the average Nvidia price target of $182.49 implies 5.85% upside potential from current levels. Year-to-date, NVDA stock has gained over 28%.
