In the midst of a tumultuous period for Nvidia and the stock market as a whole, senior executives of the semiconductor giant have been noted for their large-scale selling of company shares. While the situation has calmed somewhat in the second half of September, Nvidia executives, including Chief Financial Officer Colette Kress, have continued to trade NVDA stock. Kress recently sold 66,670 shares at an average price of $116.59, resulting in a net profit of approximately $7.7 million.
On the same day, Principal Accounting Officer Donald Robertson made a smaller sale of $4,500 shares at an average price of $116.51, totaling about $524,293.
However, these sales pale in comparison to the activities of Nvidia CEO Jensen Huang. Between September 4 and September 16, Huang sold 1.2 million NVDA shares, with a cumulative value of around $132 million. The average prices of these sales ranged from $104.35 to $118.97.
Other senior Nvidia personnel, including Vice President of Operation Debora Shoquist and General Counsel and Secretary Timothy Teter, also sold significant numbers of NVDA shares in September.
These insider trades have garnered attention due to their timing coinciding with a series of turbulent events. First, there was a major stock market sell-off which caused Nvidia to experience the largest one-day market capitalization drop in history. Then, news emerged that the chipmaker was subpoenaed by the U.S. government over certain business practices, despite the company denying the allegations. These events raised concerns and led to increased volatility.
Although the situation has significantly calmed by September 23, there is still a sense of unease among investors. Many have pointed out that the recent 50 basis points interest rate cut by the FED is reminiscent of similar actions taken before past recessions. This is particularly concerning for Nvidia, as it is expected to be heavily impacted in the event of a crash, despite its recent successes.
Despite these fears, Nvidia appears to be in fairly good shape as it has started regaining upward momentum. While NVDA shares have seen an 8.07% decline in the last 30 days, they are currently 12.97% above their September lows.
Furthermore, technical analysis suggests that Nvidia may experience a bullish breakout, with the formation of a Cup & Handle chart pattern. The True Strength Indicator (TSI) also indicates a potential upward move for NVDA shares, although a bullish crossover has not yet occurred.
In conclusion, while there are concerns surrounding Nvidia and its stock, the company is showing signs of resilience and potential for growth. However, investors should be cautious and consider the risks involved in investing in speculative markets like the stock market.
