As fluctuations continue in Nvidia’s (NASDAQ: NVDA) stock in the near term, the company’s major investors, led by CEO Jensen Huang, are increasingly moving to divest their shares.
Adding to this trend, Nvidia’s third-largest shareholder and board member, Tench Coxe, has also begun selling off a considerable portion of his holdings, totaling $235 million over a two-day span, according to regulatory filings.
Coxe, who has been a significant shareholder since 1997, sold his Nvidia shares at prices between $116.27 and $119.27 each.
On September 19, he offloaded 1,000,000 shares at an average price of $119.27. The following day, he sold an additional 202,978 shares at an average price of $117.29, plus 797,022 shares at $116.27.
These sales were conducted through a Profit Sharing Plan Trust, indicating that the shares were part of a retirement trust that benefits Coxe.
Rising Insider Sales at Nvidia
Coxe is merely one of several Nvidia insiders liquidating their shares, a movement initiated by Huang, who has been offloading parts of his stake nearly daily since mid-2024. Most recently, he sold 1.2 million shares of NVDA on September 4 and September 16, amounting to approximately $132 million, with average sale prices between $104.35 and $118.97.
Other significant insiders selling shares include Chief Financial Officer Colette Kress, who sold 66,670 shares on September 20 at an average price of $116.59, totaling about $7.7 million. On the same day, Principal Accounting Officer Donald Robertson sold 4,500 shares at an average price of $116.51, resulting in around $524,293 from his sale.
These sales are occurring during a time of increased volatility for Nvidia’s stock, as market participants raise concerns about the sustainability of the momentum gained from the company’s advancements in artificial intelligence.
The wave of selling may also reflect a lack of confidence in Nvidia’s short-term outlook, especially given recent turbulent developments. Notably, the company is currently under scrutiny from a U.S. government investigation regarding antitrust issues. While Nvidia has denied any subpoenas, such investigations have raised concerns about its continued dominance in the AI sector.
At the same time, despite a recent market rally spurred by the Federal Reserve’s 50-basis-point interest rate cut, Nvidia has struggled to keep its price above the $115 support level.
Nonetheless, a report from Finbold dated September 23 indicates that Nvidia holds growth potential, grounded in solid fundamentals, such as the upcoming Blackwell chip release and historical trends showing stock rallies in the months following interest rate cuts.
NVDA Stock Price Outlook
Increasing apprehensions surrounding the executive sell-offs at Nvidia have led to signs of near-term weakness for the stock. The latest trading session saw a slight gain of 0.22%, leading to a share value of $116; however, NVDA has seen a decline of 1.6% over the week and 8% over the month.
Regarding its future trading patterns, trading expert Connor Bates noted in a post on X on September 24 that Nvidia has been underperforming compared to other tech stocks as of late.
Once a standout in this year’s tech rally, Nvidia’s stock has lagged behind broader indices in recent trading sessions, causing uncertainty regarding the semiconductor giant’s outlook.
Bates also mentioned that several important moving averages—specifically the 50-day, 100-day, and 200-day averages—are currently experiencing significant compression or “coiling,” which could suggest an accumulation of momentum.
He remarked that this level of compression has not been observed for an extended time, which typically precedes a substantial price movement. This technical condition indicates that Nvidia could be on the brink of a major breakout or breakdown soon.
In conclusion, the recent trend of insider selling at Nvidia raises concerns about the company’s immediate outlook amid a backdrop of market instability. Overall, the stock stands at a critical point, with the convergence of key moving averages signaling that investors should closely monitor this semiconductor titan for its next move.
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