Jensen Huang, President and CEO of Nvidia (NVDA) sold shares worth $14.4 million of the semiconductor company on June 20. The stock sale is part of his $865 million disposal plan, under which Huang plans to sell a total of 6 million of the company’s common shares.
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Huang adopted a new 10b5-1 plan in March, a pre-arranged trading plan that allows him to sell up to 6 million shares of NVDA by the end of 2025. Such plans are typically adopted by billionaires and key company personnel to inform shareholders in advance about their planned share sales and to avoid significant stock price fluctuations. Huang has also filed a regulatory form with the SEC indicating his intent to sell another 50,000 NVDA stock soon.
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
A Closer Look at the Insider’s Transactions
According to the Form 4 filed with the SEC on June 23, Huang sold 100,000 NVDA stock on June 20 and June 23. Shares were sold in multiple tranches at weighted average prices ranging between $142.8047 and $145.864 apiece.
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 32 Buys and three Hold ratings. Also, the average Nvidia price target of $174.39 implies 21% upside potential from current levels. Year-to-date, NVDA stock has gained over 7%.
