Nvidia Corp (NASDAQ:NVDA) Executive Vice President of Worldwide Field Operations, Ajay K. Puri, has sold a significant portion of his stock in the company, according to a recent SEC filing. On July 12, 2024, Puri completed multiple transactions selling a total of $13,023,949 worth of Nvidia shares. The sales occurred at prices ranging from $127.76 to $131.40 per share.
The transactions were executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Puri had adopted on April 12, 2024. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on non-public, material information.
The SEC filing reveals that Puri sold shares in several separate transactions at varying prices. The first batch of shares was sold at a weighted average price of $127.76, with individual sales prices between $127.33 and $127.99. Another set of shares was sold at an average of $128.49, with prices ranging from $128.01 to $128.99. Subsequent transactions saw shares sold at average prices of $129.54 and $130.49, with the respective sales ranging from $129.00 to $129.99 and from $130.00 to $130.99. The final batch of shares was sold at an average price of $131.40, with individual sales prices from $131.00 to $131.89.
Following these sales, Puri's remaining ownership in Nvidia is largely indirect, held by trusts where he serves as a trustee. The shares sold were held by the Ajay K. Puri Revocable Trust, and Puri's direct ownership following the transactions has been adjusted to reflect a ten-for-one forward split of Nvidia's common stock that took effect after the market closed on June 7, 2024.
The SEC form 4 filing also notes that Puri disclaims beneficial ownership of the shares held by The Puri 2019 Irrevocable Children's Trust, except to the extent of his pecuniary interest therein, if any.
Investors often monitor insider sales for signals about executives' confidence in their company's prospects. However, sales under Rule 10b5-1 plans are typically viewed as less indicative of insider sentiment, given their pre-arranged nature.
In other recent news, Nvidia, the major chipmaker, is currently under investigation by the French competition authority for potential anti-competitive practices. The probe aligns with a broader global scrutiny of big tech firms and their market practices. In another development, Nvidia's shares saw a boost as Benchmark raised its price target for the company while maintaining its Buy rating. The firm anticipates that Nvidia's growth trajectory will remain strong, unaffected by the increasing pace at which its customers are developing their own silicon solutions.
Meanwhile, Taiwan Semiconductor Manufacturing Co (TSMC), a client of Nvidia, is set to announce a significant 30% jump in its second-quarter profit due to robust demand for AI chips. The anticipated net profit for the quarter ending June 30 is projected to be T$236.1 billion ($7.25 billion), a notable increase from T$181.8 billion in the same period last year.
These are recent developments and it's important to note that they do not provide a comprehensive view of the companies' financial health. The information provided is based on recent news items and analyst notes. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions.
InvestingPro Insights
Nvidia's recent insider sales have sparked interest among investors looking to understand the implications for the company's stock performance. According to InvestingPro, Nvidia boasts a perfect Piotroski Score of 9, indicating a very healthy financial condition, which could reassure investors about the company's fundamental strength despite insider sales. Additionally, analysts are predicting sales growth in the current year, which suggests that the company's business prospects remain robust.
On the financial front, Nvidia's market capitalization stands at an impressive $3150.0 billion USD. The company has experienced substantial revenue growth over the last twelve months as of Q1 2023, with an increase of 208.27%. Furthermore, the gross profit margin is notably high at 75.29%, underscoring the company's efficiency in managing its cost of goods sold. These metrics underscore Nvidia's strong market position and operational effectiveness, factors that are essential for investors to consider.
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