SANTA CLARA, CA – Nvidia Corp (NASDAQ:NVDA) President and CEO Jen-Hsun Huang has sold a significant portion of his company stock, totaling approximately $29.6 million, according to a recent SEC filing. The transactions occurred over two days, with shares sold at prices ranging from $121.67 to $128.09.
On July 2nd and 3rd, Huang parted with multiple blocks of Nvidia shares, capitalizing on the company's recent stock performance. The sales were executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which allows company insiders to sell shares at predetermined times to avoid any accusations of insider trading.
The transactions began on July 2nd, with Huang selling 37,998 shares at an average price of $121.67, followed by a sale of 75,208 shares at an average of $122.44. Additional sales on the same day included 6,794 shares at an average of $123.16.
The following day, Huang continued to divest his holdings, starting with a block of 12,485 shares at an average price of $121.87. Subsequent transactions on July 3rd included sales of 48,562 shares at $122.25, 3,306 shares at $123.61, 4,195 shares at $124.51, 15,243 shares at $125.56, 7,260 shares at $126.52, 26,322 shares at $127.45, and a final block of 2,627 shares at $128.09.
Despite these sales, Huang remains a major shareholder of Nvidia, holding millions of shares directly and indirectly through trusts and partnerships. The filings indicate that Huang's direct ownership following the transactions stands at 79,734,995 shares, with additional indirect holdings through various trusts and partnerships.
Investors often monitor insider sales for hints about executives' confidence in their company's prospects. However, it's important to note that such sales can be part of normal financial planning strategies and do not necessarily indicate a change in the company's future outlook.
Nvidia, a leading technology company known for its graphics processing units (GPUs), has seen its stock price fluctuate in recent times amid the broader tech market's ups and downs. The company continues to advance in areas such as gaming, data centers, artificial intelligence, and autonomous vehicles.
This latest move by the CEO of Nvidia provides investors with a glimpse into the trading activities of high-level executives within the company, offering insights into their personal stake in the firm's success.
In other recent news, NVIDIA's earnings and revenue growth potential has been the subject of recent analyst discussions. New Street Research downgraded NVIDIA from Buy to Neutral, citing concerns over anticipated revenue growth deceleration and increased competition. The firm expects an EPS of $4.1 by 2027, setting a target price of $143 in 2026.
In contrast, Cantor Fitzgerald has maintained its Overweight rating on NVIDIA, based on the company's role in driving technological innovation and reducing computing costs. Both firms acknowledge NVIDIA's strength and influence in the tech sector, which has seen significant growth, with NVIDIA contributing significantly to the sector's overall 30% leap.
In other recent developments, NVIDIA shareholders approved key proposals at the 2024 Annual Meeting, including the election of all twelve director nominees, advisory approval of executive compensation, and ratification of the company's independent registered accounting firm, PricewaterhouseCoopers LLP. A proposal to amend the company's voting standards was also approved.
However, NVIDIA is also set to face antitrust charges in France for alleged anti-competitive behavior. This marks the first time the company will face such charges, which have resulted from investigations that included dawn raids focusing on NVIDIA.
InvestingPro Insights
In light of Nvidia Corp's (NASDAQ:NVDA) CEO Jen-Hsun Huang's recent stock sales, investors may find the following metrics and InvestingPro Tips particularly insightful. Nvidia's robust market capitalization stands at an impressive $3.1 trillion, reflecting the company's significant presence in the semiconductor industry. The stock is trading at a high earnings multiple with a P/E ratio of 73.35, indicating high investor expectations for future earnings growth.
InvestingPro Tips highlight that Nvidia is a prominent player in the Semiconductors & Semiconductor Equipment industry and analysts anticipate sales growth in the current year. This optimism is underlined by the company's substantial revenue growth over the last twelve months as of Q1 2025, which surged by 208.27%. Moreover, Nvidia's gross profit margin during the same period was a healthy 75.29%, demonstrating the company's ability to maintain profitability despite the costs associated with producing its advanced GPUs and other technology solutions.
The company's financial health is further evidenced by the fact that its cash flows can sufficiently cover interest payments, and it has maintained dividend payments for 13 consecutive years. For investors looking for more comprehensive analysis and additional InvestingPro Tips, including insights into Nvidia's valuation multiples and stock price volatility, they can explore the full suite of tips available on InvestingPro. There are 19 additional tips listed on InvestingPro, and readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Considering Nvidia's strong historical returns and the potential for continued growth as indicated by analysts, the CEO's recent stock sales may be part of a broader financial strategy rather than a reflection of the company's future prospects. Nvidia's next earnings date is set for August 15, 2024, which will provide further clarity on the company's financial trajectory and performance.
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