278 One of the hottest stocks in 2023 was semiconductor company Nvidia Corp NVDA. The stock soared as a beneficiary of growing demand for artificial intelligence platforms and became one of the limited number of public companies to hit a market capitalization of $1 trillion. As the stock climbed, several insiders were selling shares. What Happened Nvidia CEO and co-founder Jensen Huang saw his wealth soar in 2023 as one of the largest shareholders of the company. New filings from the company showed Huang sold shares over the past several trading sessions. Two separate filings from Nvidia revealed Huang exercised stock options in blocks of 29,688 shares with an exercise price of $4. Three separate transactions saw this amount of common shares exercised through options from Sept. 1 to Sept. 6. The acquired shares were then sold in three blocks over the same time period with prices of the shares ranging from $466.13 to $497.17. Based on the filings, Huang made proceeds of around $14 million in each of the three sale blocks, with a total of $42,828,053 from the stock sales. It’s important for investors to note that all the sales were part of 10b5-1 plans set up by Huang in March 2023. A 10b5-1 plan is a predetermined plan that can lock in items like the transaction date, exercise date and sell price before the transaction occurs. This can be useful for executives to eliminate doubt that the sales are coming due to weakened sales or material events. While some may see Huang as selling while Nvidia shares are peaking and it could signal pressure ahead, the sales were predetermined earlier this year. Why It’s Important After the sale of the newly acquired shares, Huang remained one of the largest shareholders of Nvidia. The sale did not include any of his previously owned shares, only the new ones acquired through the options exercise. Benzinga previously reported on Nvidia board member Tench Coxe selling shares of the company multiple times during 2023. Board members Harvey Jones and Brooke Seawell also sold shares of the company earlier this year. Many of the shares sold by the board members had been owned for multiple years and came after shares hit all-time highs. Insider sales can happen for a number of reasons, including for tax purposes or to offset low salaries and compensation. Coxe and Huang remain two of the largest individual shareholders of Nvidia. Huang is currently the 29th richest person in the world with a net worth of $41.9 billion. Huang’s wealth has increased by $28.1 billion year-to-date. NVDA Price Action: Nvidia shares trade at $462.41 versus a 52-week trading range of $108.13 to $502.66. Shares of the company are up 227% year-to-date in 2023. You Might Be Interested In China’s Jump In Car Sales Is Drawing Big Money To These Stocks New York Life Teams Up with New York Yankees for $100,000 Strikeout Series Benefiting SCAN Harbor Fed’s Kashkari sees 40% chance of ‘meaningfully higher’ interest rates Insight into Major U.S. Bank Mergers and Acquisitions FDA Grants Approval to Merck’s Therapy for Rare Lung Condition Wall Street and Beijing Grapple with Aftermath of Ransomware Attack on China’s Largest Bank
