Nvidia (NASDAQ: NVDA) insiders continue to offload their holdings in the company amid the prevailing volatility around the share price. Indeed, the sustained insider selling emerged days after CEO Jensen Huang paused his sale of NVDA shares.
The latest transaction involves Mark Stevens, a company director, who, according to regulatory filings, sold over $20 million of his holdings in the semiconductor giant.
Particulars of the trade show that the sale occurred on September 24 and involved 165,100 shares of Nvidia common stock at an average price of $121.2685 per share. The shares were sold in a range from $121.20 to $121.4157. After this transaction, Stevens now holds 8,420,117 shares owned indirectly through a trust.
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Stevens has also made previous sales amid Nvidia’s continued dominance in the artificial intelligence (AI) sector. Another notable one occurred between July 9th and 10th, when he offloaded 785,000 shares, netting $103 million.
Concerns over Nvidia insider selling
Overall, Nvidia’s insider selling activity has captured headlines recently, potentially making investors cautious about the stock’s short-term outlook. Huang led the selling momentum, netting approximately $713 million worth of shares between June 14 and September 13.
Consequently, following the news, NVDA received some relief, breaching the $120 resistance after it emerged that the executive had completed selling the maximum number of shares under a previously agreed trading plan. Other sellers include Chief Financial Officer Colette Kress, who sold 66,670 shares, and Principal Accounting Officer Donald Robertson, who offloaded 4,500 shares.
These insider trades coincided with a period when Nvidia faced unfortunate circumstances that likely dampened investor confidence. For instance, the chipmaker registered notable volatility after reports emerged that the United States government was investigating the company over antitrust issues. However, the semiconductor giant denied the reports.
Similarly, there were concerns regarding Nvidia’s general market outlook after some suggested that the equity run as an artificial intelligence stock was a bubble that was ending. To this end, some analysts have suggested that Apple (NASDAQ: AAPL) might replace Nvdia as the ideal AI stock.
What next for NVDA stock
Concerns about Nvidia’s stock performance continue to escalate compared to the trajectory of the equity in the general stock market. In this regard, analysis by the charting platform TrendSpider suggested that NVDA has remained flat since the company’s 10-for-1 stock split was enacted in early June.
Despite the promising growth prospects in the AI sector and bullish momentum in broader markets, Nvidia’s performance has been stagnant, with no significant movement over the last three months.
In contrast, the platform noted that the S&P 500 has risen by 7% over the same period, highlighting Nvidia’s underperformance.
On the other hand, analysis by a stock market trader with the pseudonym Mr_Derivatives, in an X post on September 28, noted that Nvidia has shown signs of consolidating within a bullish pennant pattern. The stock appears to be moving between the boundaries of this pennant formation, hinting at a continuation of its upward trajectory.
The expert noted that technical indicators suggest that NVDA may reach a potential price target of $150 by the end of the year. This optimistic projection is supported by relative solid strength index values, signaling that the stock still has room to climb before becoming overbought.
During the latest trading session, NVDA weakened, with the equity dropping 2% for the day, closing at $121. However, on the weekly chart, Nvidia remains up over 4%.
In conclusion, while insider selling activity has caused short-term caution among investors, technical analyses suggest that the stock may still have growth potential. However, Nvidia’s performance remains scrutinized as it faces broader concerns regarding market stability.
