Shares of Nvidia (NVDA) were on an upswing in trading on Tuesday after the chip major’s CEO, Jensen Huang, completed a trading plan that he had adopted earlier this year. While NVDA stock has been volatile lately, over the past year, NVDA has skyrocketed by more than 100%.
Huang’s Trading Plan Netted More than $700 Million
Huang’s new trading plan was adopted earlier this year, and through this plan, the CEO sold a flurry of shares via a series of transactions. He was set to sell up to 6 million shares by the end of the first quarter of FY25.
To execute this plan, Huang sold shares from June 14 through September 13, ranging from as few as 70 shares to as many as 75,300. The sale prices varied from $91.72 on August 5 to $140.24 on June 20.
Huang netted $713 million from the stock sale, executed through his Rule 10b5-1 trading plan, at an average price of $118.83 per share. While the plan was originally set to remain effective until March 2025, it had already sold all of the allotted shares six months ahead of schedule. These sales came from Huang’s personal account, which now holds 75.4 million Nvidia shares, as disclosed in a recent company filing. In addition to this, he also holds a substantial 786 million shares through various trusts and partnerships.
Huang Is the Largest Individual Shareholder in NVDA
As the largest individual shareholder of Nvidia, Huang owned a 3.8% stake in the company as of the end of March, prior to his 2024 stock sales, according to the company’s latest proxy statement. A Rule 10b5-1 trading plan, like the one employed by Huang, ensures that stock trades are executed automatically when preset conditions, such as price or volume, are met. This mechanism is designed to prevent insiders from gaining an unfair advantage through material nonpublic information.
Is NVDA a Buy Right Now?
Analysts remain bullish about NVDA stock, with a Strong Buy consensus rating based on 39 Buys and three Holds. The average NVDA price target of $152.44 implies an upside potential of 26.1% from current levels.
