NVIDIA Corp (NASDAQ:NVDA) President and CEO Jen-Hsun Huang has recently sold a significant number of company shares, amounting to over $29 million. The transactions were executed over two days, with prices ranging from $122.88 to $128.05 per share.
The sales were conducted under a prearranged trading plan, known as a Rule 10b5-1 plan, which allows company insiders to sell shares over a predetermined period of time to avoid accusations of insider trading. This plan was adopted by Huang on March 14, 2024, as noted in the footnotes of the filing.
On June 26, Huang sold NVIDIA shares in multiple transactions at prices that varied slightly. The sales included 1,560 shares at an average price of $122.88, 45,036 shares at $123.56, 24,385 shares at $124.40, 17,263 shares at $125.49, 18,657 shares at $126.54, 12,699 shares at $127.37, and 400 shares at $128.05. The following day, on June 27, he continued selling, offloading 200 shares at $122.97, 30,811 shares at $123.66, 75,300 shares at $124.50, 12,602 shares at $125.35, and 1,087 shares at $126.15.
Following these sales, Huang's direct ownership in NVIDIA stands at 80,314,995 shares. Additionally, he has indirect ownership through various trusts and partnerships. The Jen-Hsun & Lori Huang Living Trust, where Huang serves as a trustee alongside Lori Huang, holds a substantial number of shares. Other holdings include shares by J. and L. Huang Investments, L.P., The Huang 2012 Irrevocable Trust, The Huang Irrevocable Remainder Trust, and annuity trusts named after Huang and his spouse.
These transactions are disclosed in compliance with SEC regulations, which mandate company insiders to report sales and purchases of company stock. The detailed report provides transparency to investors and the market about the trading activities of high-level executives within the company.
In other recent news, NVIDIA, a leading AI chip manufacturer, has been in the spotlight with several significant developments. Cantor Fitzgerald maintained its Overweight rating on NVIDIA and raised the stock's price target to $175, based on the company's role in driving technological innovation and reducing computing costs. In a similar move, Citi also raised its price target for NVIDIA to $150, maintaining a Buy rating on the stock. This decision followed an increase in their CY25/26 EPS forecasts by 7% and 13%, respectively, based on anticipated growth in production.
Investment activity also saw Cathie Wood's ARK ETFs selling a substantial number of NVIDIA shares, indicating strategic adjustments to its portfolio. NVIDIA's advancements in artificial intelligence and its continuous software innovation were highlighted by both Cantor Fitzgerald and Citi as key factors in their positive outlook. These recent developments underscore NVIDIA's position at the forefront of the tech sector, with further growth expected in the AI sector.
InvestingPro Insights
Amidst the news of NVIDIA Corp's (NASDAQ:NVDA) CEO Jen-Hsun Huang selling a significant portion of his shares, the company's financial health and market performance remain a keen interest to investors. NVIDIA has been recognized by InvestingPro as a prominent player in the Semiconductors & Semiconductor Equipment industry, with a standout Piotroski Score of 9, indicating strong financial health. Additionally, analysts predict that NVIDIA will continue to experience sales growth in the current year, which aligns with the company's impressive revenue growth of 208.27% over the last twelve months as of Q1 2025.
Investors should note that NVIDIA is trading at a high earnings multiple, with a P/E ratio of 71.72, which suggests a premium market valuation. Despite the high valuation, the company's liquidity is robust, with liquid assets that surpass short-term obligations. Moreover, NVIDIA has maintained dividend payments for 13 consecutive years, which may be appealing for income-focused investors.
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