After Nvidia (NASDAQ: NVDA) CEO Jensen Huang completed the sale of part of his stake under an agreed-upon trading plan, other executives appear to be following suit, liquidating significant shares in the company.
In this case, Nvidia’s Chief Financial Officer, Colette Kress, is the latest insider to sell, offloading $9 million worth of shares, according to a filing with the Securities and Exchange Commission (SEC).
During the December 13 transaction, Kress sold 66,670 shares at an average price of $135.40. Following the sale, she now holds 3,351,572 shares valued at approximately $453.8 million.
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Kress is among several executives who have recently accelerated their selling spree. For example, on September 20, she sold 66,670 shares for $7.7 million, and Principal Accounting Officer Donald Robertson sold 4,500 shares for about $524,293.
Notably, Huang’s sale of six million shares was among the watched transactions of the year, coinciding with Nvidia stock reaching new highs amid positive momentum from its artificial intelligence (AI) ventures.
Investor sentiment briefly turned positive in late September after Huang completed his planned sale, generating $713 million. Although Huang’s transactions dwarf the sales of other executives, they are still worth watching.
Most of these sales are executed through 10b5-1 plans, which must be established at least three months in advance. This strategy helps reduce the risk of insider trading accusations.
Overall, insider sales often raise concerns among investors, as they may signal a lack of confidence in the company’s short-term prospects.
Nvidia headwinds
The latest insider sale comes when Nvidia faces several headwinds, including a recent antitrust probe in China that has raised concerns about the company’s future outlook.
The investigation, coupled with China’s tightening regulations on foreign companies, partly caused Nvidia’s stock to fall below $140.
The probe can be linked to broader U.S.-China tensions, particularly in the tech sector. China aims to reduce its reliance on foreign semiconductor technology, while the U.S. seeks to limit exports of advanced chips to China.
Meanwhile, there are growing concerns that Nvidia’s stock may have peaked, with minimal growth ahead. For instance, Blue-chip technical analyst Larry Tentarelli believes that with a market cap of over $3 trillion, Nvidia may have limited room for further development, with emerging AI companies potentially outpacing it.
NVDA stock price analysis
At press time, Nvidia stock was trading at $134.25, down over 2% in the last 24 hours and 3.2% on the weekly chart. Year-to-date, NVDA’s share price has rallied 178%.
Despite this short-term price movement, some analysts remain optimistic about Nvidia’s future, mainly due to its advancements in AI.
To this end, Morgan Stanley (NYSE: MS) and Piper Sandler predict that Nvidia’s highly anticipated next-generation Blackwell chip sales could range from $5 billion to $8 billion in Q4, accounting for 45% of Nvidia’s total sales from compute and networking products in the same quarter last year.
However, the company faces competition from rivals like Advanced Micro Devices (NASDAQ: AMD).
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