As Nvidia (NASDAQ: NVDA) stock experiences fluctuations in the near term, the company’s largest investors, spearheaded by CEO Jensen Huang, are progressively divesting their shares in the corporation.
Adding to this trend, Nvidia’s third-largest shareholder and director, Tench Coxe, has also taken steps to sell a significant amount of his shares, amounting to $235 million over a two-day period, according to filings.
Coxe, a notable shareholder since 1997, transacted his Nvidia shares at prices ranging from $116.27 to $119.27 per share.
On September 19, Coxe sold 1,000,000 shares at an average price of $119.27. The next day, he executed another sale of 202,978 shares at an average price of $117.29, along with 797,022 shares at $116.27.
The reports indicate that these stock transactions were carried out through a Profit Sharing Plan Trust, meaning the shares were part of a retirement trust benefiting Coxe.
Increase in Nvidia’s Insider Sellers
Coxe is just one of many Nvidia insiders who are liquidating shares, a trend initiated by Huang, who has been selling portions of his stake almost daily since mid-2024. Most recently, he sold 1.2 million NVDA shares on September 4 and September 16, amounting to about $132 million, with average prices ranging between $104.35 and $118.97.
Other key figures involved in selling include Chief Financial Officer Colette Kress, who disposed of 66,670 shares on September 20 at an average price of $116.59, totaling approximately $7.7 million. That same day, Principal Accounting Officer Donald Robertson sold 4,500 shares at an average price of $116.51, achieving around $524,293 from the sale.
These sales coincide with a period of heightened volatility for Nvidia stock, as market participants express concerns about whether the equity can sustain the momentum gained from the company’s advancements in artificial intelligence.
The mass selling might also indicate a lack of confidence regarding the short-term trajectory of Nvidia shares, particularly in light of recent turbulent developments. Notably, the company has come under scrutiny from a United States government investigation concerning antitrust issues. Although Nvidia has denied being subpoenaed, such actions have raised alarms about its continued leadership in the AI domain.
Simultaneously, despite a recent market rally triggered by the Federal Reserve’s 50-basis-point interest rate cut, Nvidia has struggled to maintain its price above the $115 support level.
Nevertheless, a report from Finbold on September 23 suggests that Nvidia still holds growth potential based on significant fundamentals, such as the anticipated Blackwell chip release and the stock’s historical pattern of rallying months following interest rate reductions.
Outlook for NVDA Stock Price
With rising concerns regarding the offloading of Nvidia shares by executives, the stock shows signs of weakness in the near term. The latest trading session concluded with a modest gain of 0.22%, bringing the shares to a value of $116, yet the NVDA stock price has fallen 1.6% over the week and 8% over the month.
In regard to future trading behavior, trading expert Connor Bates noted in an X post on September 24 that Nvidia has exhibited underperformance relative to other technology stocks recently.
Once a standout performer in this year’s tech rally, the stock has fallen behind the broader indices in recent trading periods, prompting uncertainty about the semiconductor behemoth’s outlook.
Bates highlighted that multiple crucial moving averages—specifically the 50-day, 100-day, and 200-day averages—are currently experiencing significant compression or “coiling,” indicating a possible accumulation of momentum.
He pointed out that this level of compression has not been seen for an extended period, which often precedes a major price shift. This technical situation suggests that Nvidia could be poised for a significant breakout or breakdown in the near future.
In summary, the recent trend of insider selling at Nvidia raises questions regarding the company’s immediate outlook against a backdrop of market instability. Overall, the stock finds itself at a critical juncture, and the tightening of essential moving averages indicates that investors should keep a close watch on the semiconductor titan for its next movement.
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