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Nvidia CEO Jen-Hsun Huang sells $29.31 million in company stock

Published 26/06/2024, 21:14
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Nvidia Corp (NASDAQ:NVDA) President and CEO Jen-Hsun Huang has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on June 24th and 25th, involved the sale of company stock worth approximately $29.31 million. The stock was sold at prices ranging from $118.63 to $126.19 per share.

The SEC filing revealed multiple transactions over the two days, with shares being sold at various price points within the stated range. On June 24th, shares were sold at prices between $118.11 and $124.25, while the sales on June 25th saw prices ranging from $119.37 to $126.48.

Huang's sales are part of a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This mechanism is a common practice among corporate executives, providing them with a way to gradually diversify their investment portfolios.

Following the recent sales, Huang still retains a substantial stake in Nvidia, with direct and indirect holdings across various trusts and partnerships. The transactions do not necessarily indicate a lack of confidence in the company's future but are a typical part of personal financial planning for executives with large equity stakes in their companies.

Nvidia, headquartered in Santa Clara, California, is a leading manufacturer of graphics processing units (GPUs) and has expanded its reach into various computing sectors, including artificial intelligence and data centers. The company's stock performance is closely watched by investors, given its pivotal role in the tech industry and the broader market for semiconductor devices.

Investors often pay close attention to insider transactions as they can provide insights into the company's health and executive sentiment. However, it's important to note that such sales can be motivated by a range of personal financial considerations and do not always reflect the company's operational performance or future prospects.

As of the latest SEC filings, Huang's actions reflect routine financial management, and Nvidia continues to be a key player in the semiconductor space.

In other recent news, NVIDIA, a prominent AI chip manufacturer, has been the subject of recent analyst upgrades. Cantor Fitzgerald maintained its Overweight rating and increased NVIDIA's price target to $175, citing the company's significant role in driving technological innovation and reducing computing costs. Similarly, analysts from Citi raised their price target for NVIDIA to $150, maintaining a buy rating on the stock. This decision was based on an increase in their CY25/26 EPS forecasts by 7% and 13%, respectively, due to anticipated growth in production.

In the investment sector, Cathie Wood's ARK ETFs sold a substantial number of NVIDIA shares as part of its strategic portfolio adjustments. The firm also increased its holdings in Roku (NASDAQ:ROKU) Inc and 10X Genomics Inc, reflecting confidence in these companies' growth prospects.

Furthermore, NVIDIA's potential influence on the FTSE Russell's annual reconstitution has been noted, given the company's significant share rise of approximately 180% since the last reconstitution. This development underscores the robust rally experienced by AI stocks recently. These are some of the recent developments concerning NVIDIA.

InvestingPro Insights

Nvidia's recent financial performance and market valuation provide a broader context to understand the significance of CEO Jen-Hsun Huang's recent stock sales. According to the latest data from InvestingPro, Nvidia boasts a robust market capitalization of $3090.0 billion, reflecting its significant presence in the tech industry. With a P/E ratio of 71.35 and an adjusted P/E ratio for the last twelve months as of Q1 2025 sitting at 73.41, the company trades at a high earnings multiple, which could suggest investor confidence in its continued growth and profitability.

InvestingPro Tips underscore that Nvidia is not only a prominent player in the Semiconductors & Semiconductor Equipment industry but also has a perfect Piotroski Score of 9, indicating strong financial health. Additionally, analysts anticipate sales growth in the current year, which aligns with the substantial revenue growth of 208.27% for the last twelve months as of Q1 2025. This growth trajectory is further evidenced by the company's impressive revenue of $79.77 billion over the same period.

For investors looking to delve deeper into Nvidia's financials and performance metrics, there are 20 additional InvestingPro Tips available, offering a comprehensive analysis of the company's market position and potential investment value. To access these insights and enhance your investment strategies, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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