NVIDIA CEO’s Stock Sales
NVIDIA’s stock hit an all-time high this June, coinciding with CEO Jensen Huang selling a significant portion of his shares. According to a document filed with the U.S. Securities and Exchange Commission (SEC) on Thursday, Huang sold over 5 million shares in recent months. Specifically, from June 13th to September 4th, he sold approximately 5.3 million shares in multiple transactions.
Amount of Shares and Value
Each of these transactions involved the sale of 120,000 shares, bringing the total value of these sales to about $630 million. The sales were conducted under a pre-established trading plan known as a 10b5-1 plan, which allows executives and insiders of publicly traded companies to sell stock at predetermined intervals, reducing the risk of insider trading accusations.
10b5-1 Trading Plan Explanation
Huang initiated the 10b5-1 trading plan in March 2023, setting a schedule to sell up to 6 million NVIDIA shares by March 2025. The plan is designed to increase transparency and fairness in insider stock sales, ensuring they do not occur based on non-public information. Huang’s recent sales appear to be part of this pre-arranged strategy.
Huang’s Shareholding in NVIDIA
Despite these sales, Huang remains the largest individual shareholder of NVIDIA. As of August 9th, data from FactSet shows he held about 3.5% of the company’s floating shares. This sizable stake aligns with his position as one of the most influential figures in the company.
Impact on Huang’s Net Worth
Jensen Huang’s personal fortune has seen a significant boost this year, largely due to the rise in NVIDIA’s stock price. According to the Bloomberg Billionaires Index, his net worth currently stands at $94.2 billion, marking an increase of roughly $50 billion since the start of 2024. This substantial growth places him at 18th on the global rich list.
NVIDIA’s Stock Performance
NVIDIA’s stock has been on a strong upward trajectory throughout 2024, driven by increased demand for its GPUs, which are vital for artificial intelligence (AI) applications, gaming, and data centers. The company’s robust performance in the AI space has bolstered investor confidence, pushing the stock to record highs.
Future Stock Sales Planned
Jensen Huang’s 10b5-1 plan extends until March 2025, meaning he may sell up to an additional 700,000 shares before the end of the plan. The gradual execution of these sales will continue to be monitored closely by investors, especially given NVIDIA’s role as a major player in the AI revolution.
Huang’s decision to sell shares while NVIDIA’s stock was at an all-time high has drawn attention, but the transparency of his 10b5-1 trading plan ensures that the sales are above board. As NVIDIA continues to grow, Huang remains a central figure both within the company and among the world’s wealthiest individuals.
Update
CEO Jensen Huang has resumed selling, offloading over $53 million worth of $NVDA shares last week.
Update
CEO Jensen Huang has just sold an additional $26.2 million in $NVDA shares, bringing his total sales to over $104 million in the past 10 days!
Update
CEO Jensen Huang has just sold an additional $28.5 million worth of $NVDA shares, bringing his total sales to $133 million in the past 10 days.
Update
NVIDIA’s Chief Financial Officer, Colette Kress, sold $7.7 million worth of company shares.
Update
Nvidia Insider Trading Alert: Tench Coxe, the 3rd largest Nvidia shareholder who acquired shares back in 1997, has just sold $235 million worth of $NVDA stock.
Nvidia Insider Trading Alert (Update: October 8th, 2024)
Mark Stevens, Nvidia’s second-largest shareholder and a board member since 2008, has just sold $15.3 million in $NVDA shares. Over the past two weeks, he has sold more than $40 million worth of shares.
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