With Nvidia (NASDAQ: NVDA) experiencing fluctuations in the short term, significant shareholders, including CEO Jensen Huang, have been increasingly divesting their stakes in the company. In this scenario, Nvidia’s third-largest shareholder and director, Tench Coxe, has added to the trend of key sellers by offloading a noteworthy amount of his shares—valued at $235 million—over the course of two days, as indicated by regulatory filings.
Coxe, who has been a pivotal shareholder since 1997, sold his Nvidia shares at prices ranging from $116.27 to $119.27 each. On September 19, he divested 1,000,000 shares at an average price of $119.27. The next day, he conducted another transaction: selling 202,978 shares at an average price of $117.29, followed by 797,022 shares at $116.27. These stock sales were carried out through a Profit Sharing Plan Trust, meaning the shares were part of a retirement trust that benefits Coxe.
Tench Coxe Nvidia stock sell filing. Source: SEC
Coxe’s actions are part of a broader trend, as more Nvidia insiders are selling their shares. Huang has notably sold his stake in nearly every trading session since mid-2024. In recent transactions, he offloaded 1.2 million NVDA shares on September 4 and September 16, totaling around $132 million, with average prices varying from $104.35 to $118.97. Other significant sellers include Chief Financial Officer Colette Kress, who sold 66,670 shares on September 20 at an average price of $116.59, amounting to about $7.7 million. Principal Accounting Officer Donald Robertson also sold 4,500 shares on the same day at an average price of $116.51, netting approximately $524,293.
These stock sales occur during a period when Nvidia shares are facing heightened volatility, prompting market participants to question whether the stock has lost the positive momentum spurred by the company’s advancements in artificial intelligence. This trend of selling may be perceived as a sign of diminished confidence in Nvidia’s short-term outlook, especially following a series of challenging developments, including a reported U.S. government investigation into potential antitrust issues. While Nvidia has denied being subpoenaed, such scrutiny raises questions about its ongoing dominance in the AI sector.
Despite a recent market rally following a 50-basis-point interest rate cut by the Federal Reserve, Nvidia has struggled, failing to maintain its price above the $115 support level. Nevertheless, a report from Finbold on September 23 suggests that Nvidia may still have growth potential, driven by key factors such as the upcoming Blackwell chip launch and the stock’s historical tendency to rally in the months following interest rate cuts.
**NVDA Stock Price Outlook**
Concerns surrounding executives offloading Nvidia stock contribute to the equity’s short-term weakness. Although it closed the latest trading session with a slight gain of 0.22% at $116, the share price has declined 1.6% for the week and 8% for the month.
NVDA one-month stock price chart. Source: Google Finance
To forecast the stock’s potential trajectory, trading expert Connor Bates highlighted in a post on September 24 that Nvidia has recently been underperforming compared to other technology stocks. Once a standout performer in the 2024 tech rally, the stock has struggled to keep pace with broader indices in recent sessions, raising uncertainties about the future of the semiconductor giant.
Bates noted that several key moving averages—namely the 50-day, 100-day, and 200-day averages—are exhibiting extreme compression or “coiling,” indicating a possible buildup of momentum.
NVDA stock price analysis chart. Source: Connor Bates
He remarked that such tight compression in these averages has not been seen in quite some time, which often precedes significant price movements. This technical setup suggests that Nvidia may be poised for a decisive breakout or breakdown in the near future.
In summary, the recent surge of insider selling at Nvidia raises questions about the company’s short-term prospects amid ongoing market volatility. The stock finds itself at a critical juncture, and the compression of key moving averages indicates that investors should closely monitor the semiconductor giant for its next move.
