Executives and directors at Nvidia Corp., the best-performing company in the S&P 500, have recently engaged in substantial share sales, totaling around 370,000 shares valued at approximately $180 million, based on data compiled by the Washington Service. This marks a significant move, constituting the largest monthly disposal in terms of dollar value in at least six years.
Despite Nvidia’s remarkable performance, with shares surging more than threefold in 2023, the stock has experienced a decline of over 6% since November 21. This downturn followed the company’s projection for revenue in the current quarter, surpassing the average analyst estimate by approximately $2 billion, driven by robust demand for artificial intelligence computing chips.
While it’s understandable for insiders to capitalize on gains after such a stellar run, the absence of stock purchases by Nvidia insiders since 2020 raises questions about their confidence in a future rally. Shana Sissel, CEO of Banrion Capital Management, which holds Nvidia shares, remarked, “It is somewhat interesting that there has been a lot of sell activity and no buying. Given how the stock price has done, the opportunity to monetize some of their compensation makes sense.”
A representative for Nvidia emphasized that the majority of the sales are based on 10b5-1 plans, where the price, amount, and dates of the sales are predetermined. Among the insiders involved in sales or expressing an intent to sell in November were Mark Stevens, a director at Nvidia since 2008, Debora Shoquist, executive vice president of operations, and Dawn Hudson, a recent addition to Nvidia’s board.
In contrast to the selling trend at Nvidia, corporate insiders across the S&P 500 increased their buying activity in November, with the buyer-to-seller ratio poised to reach a six-month high, according to data from the Washington Service.
