NVIDIA CEO has sold nearly 1M shares, generating $152M
What's the story
Jensen Huang, the CEO and founder of NVIDIA, has sold nearly a million shares of his company. The move comes as part of a pre-planned trading strategy that Huang adopted on March 20. Huang sold 975,000 shares, and the sales generated about $152 million for him at an average price of $155.91 per share. The decision to sell such a large number of shares is not uncommon for executives managing their holdings.
Trading strategy
Selling shares in batches of around 200,000
Huang's trading plan, known as a Rule 10b5-1, was put in place to avoid any perception of bias from nonpublic information. Under this strategy, he has been selling shares in batches of around 200,000 over three-day periods. Despite the large number of shares being sold, Huang's transactions haven't significantly affected NVIDIA's stock price due to the high volume of shares traded daily, over 200 million.
Information
Huang has more than 5 million shares left to sell
Huang's trading plan allows him to sell a total of six million shares, which means he has more than five million shares left to sell by the end of 2025. This could potentially mean more sales in the future.
Market response
NVIDIA's stock has been performing well in the market
Since Huang started selling shares on June 18, the average price of his transactions has increased from $144.04 in June to $161.91 this week. This suggests that despite the insider selling, NVIDIA's stock has been performing well in the market. The company's shares hit a record high of $165.69 on Friday morning trading, further indicating strong investor confidence in NVIDIA's future prospects.