With the amount of success and growth Nvidia (NASDAQ: NVDA) stock has had in the previous year, it is hard for the trading community to find a reason to worry about insider sales that have occurred on several occasions this year.
However, when CEO Jensen Huang sells NVDA shares, investors might wonder if there is a specific reason for his actions.
Huang’s latest insider sale took place on June 13, where he offloaded 240,000 NVDA shares at an average price of $129 per share for a total profit of $31.2 million, according to the latest SEC filing on June 17.
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Traders shouldn’t be worried about Huang’s sale of NVDA stock
Nvidia has revealed in a regulatory filing that its CEO, Jensen Huang, implemented a Rule 10b5-1 trading plan on March 14. This plan allows for the sale of up to 600,000 shares of Nvidia stock through March 31, 2025.
Rule 10b5-1 trading plans are designed to automatically execute stock trades when specific, predetermined conditions—such as a particular stock price or trading volume—are met. The primary purpose of these plans is to prevent any potential misuse of material nonpublic information by insiders.
By setting up these trades in advance and following a structured plan, insiders like Huang can avoid any appearance of trading based on confidential information they may possess about the company’s future performance.
NVDA stock continues to trade upwards
After a 10-1 stock split, NVDA shares fell under the $1,000 mark, with a current valuation of $130.98 coming after 24-hour losses of 0.68% and gains of 7.55% that extended in the previous five trading sessions.
The recent performance and the pre-announced sales of NVDA shares are meant to reassure traders that there is nothing to worry about regarding this tech giant is not cause for concern.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
