Jen Hsun Huang, CEO of Nvidia Corp. (NASDAQ:NVDA), has been on a selling spree as he sold shares of the company worth nearly $169 million in June. It’s reasonable to assume that Huang is taking advantage of the significant surge in NVDA stock price driven by the AI push. Year-to-date, shares of the company have surged by 159%.
Nvidia designs and manufactures advanced graphics processing units (GPUs) and AI computing technology. For a thorough assessment of the stock, go to TipRanks’ Stock Analysis page.
CEO’s Prior Transactions
According to the most recent SEC filing, Huang divested 240,000 shares of NVDA at prices ranging from $118.95 to $127.19 per share. This transaction was made in the period between June 28 and July 2.
It’s notable that the divestiture is part of a series of transactions executed under a 10b5-1 trading plan, which the CEO started in March. Investors should note that the 10b5-1 plan is a written agreement between a corporate insider and a broker. Under this, the insider predetermines trading orders for company stock.
Interestingly, after the latest sell transaction, Huang still owns 865.58 million Nvidia shares worth roughly $107.59 billion.
Bearish Insider Trading Signal
Huang is not the only one taking advantage of NVDA’s bull run. Overall, corporate insiders have sold NVDA stock worth $298.2 million over the last three months. TipRanks’ Insider Trading Activity Tool shows that insider confidence in the stock is currently Very Negative.
Investors may benefit from keeping an eye on transactions made by key insiders, as these transactions typically reflect their confidence in the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Nvidia a Buy, Sell, or Hold?
Nvidia enjoys a dominant market share in the GPU market. Further, its efforts to innovate new products might keep supporting the positive momentum in its stock price.
Overall, NVDA has a Strong Buy consensus rating on TipRanks based on 38 Buy and three Hold recommendations. The analysts’ average price target on Nvidia stock of $135.81 implies a 5.87% upside potential.
