finbold.com
Nvidia (NASDAQ: NVDA) board member and the company’s second-largest shareholder, Mark Stevens, is increasing the rate at which he is offloading his stake in the semiconductor giant.
The latest trade involving Stevens saw him unload an additional $20.5 million worth of Nvidia stock, adding to his recent selling spree. The trade details indicated that Stevens sold 165,100 shares at an average price of $121.27 per share on September 24, 2024. This brings his total sales to over $60 million within the last two weeks alone.
Over the past three weeks, Stevens has made four significant sales, ranging between $4 million and $20 million per transaction. His sales totaled 6,156,270 shares over the last three months and 10,596,124 shares over the past six months, with no reported purchases.
Indeed, Stevens’ accelerated sales follow CEO Jensen Huang’s unloading of over $700 million of NVDA shares as part of an agreed-upon trading plan. After the executive concluded his sales under this plan, Nvidia stock reacted positively.
Other directors on a selling spree include Trench Coxe, who sold about five million Nvidia shares for $525 million at an average price of $105.04. Coxe’s sales were mainly through trusts that now account for 34.5 million shares. In his account, Coxe owns 54,368 shares. In general, insiders have sold almost $2 billion worth of NVDA shares in 2024.
Are Nvidia insider sales bearish?
The sales by directors are worth watching, especially considering that, unlike Huang, they don’t have a trading plan. Notably, these plans are implemented to reduce the chances of insiders benefiting from nonpublic information.
While insider selling can occur for various reasons unrelated to a company’s fundamentals, substantial sales from a long-standing board member could cause investors to be cautious.
Stevens’ sales come when Nvidia stock is establishing itself above the $130 mark, backed by key fundamentals, especially with the upcoming Blackwell line of chips. Indeed, these next-generation chips are touted to revolutionize the artificial intelligence sector, with the company already recording significant demand.
In this regard, Phil Panaro, a former senior advisor at Boston, believes revenue generated from Blackwell could push Nvidia’s share price to $800 by 2030, with revenue reaching $600 billion by the same year.
What next for Nvidia stock price
NVDA’s stock has been on a bullish trend in recent days, surging almost 8% in the past week. As of the latest trading session, it was valued at $134. With the stock having rallied over 55% in the past month, most of the market is looking at the next possible target of $150.
The projection toward $150 is also backed by technical indicators. For instance, Market Maestro noted that the stock has formed a bullish ‘cup and handle’ pattern, approaching a critical breakout level. This zone aligns with the 78.6% Fibonacci retracement, signaling potential for further gains.
The relative strength index (RSI) also shows strong momentum and institutional buying interest appears to be increasing, supporting the bullish case. Additionally, the MACD has triggered a ‘buy’ signal, indicating a potential upward move after recent consolidation.
Amid this bullish outlook, investors need to keep an eye on Nvidia’s recent trading activity, where the stock has witnessed a short-interest surge. In this regard, Michael Kramer, founder of Mott Capital Management, stated that this trading behavior is similar to a “casino,” referring to the significant focus on short-term options.
Overall, Nvidia stock continues to be guided by strong fundamentals, and the upcoming chip line could be vital in helping the stock target $150. However, investors must monitor factors such as short interest and accelerating insider trading as they have the potential to impact the stock in the short term.