Board member Mark Stevens cut his Nvidia stake by roughly $650 million in two sales spanning 10 days, the chipmaker's biggest insider reduction this year. He still holds about 30 million shares worth close to $6.9 billion, keeping most of his position in place.
Nvidia Corp.'s most active insider seller unloaded nearly $650 million of stock across two transactions over 10 days, the largest concentrated reduction by a board member since the chipmaker's shares rallied on blockbuster earnings.
Director Mark Stevens, who has served on Nvidia's board since 2008, executed the sales between Aug. 31 and Sept. 4 at prices from $220 to $226, according to Securities and Exchange Commission filings. The transactions left him with roughly 30 million shares valued near $6.9 billion, with the bulk of his position intact, the filings show.
The selling follows a roughly 10 percent climb in Nvidia shares since the company reported fiscal second-quarter results in late August, when revenue more than doubled year over year to $96.2 billion and earnings of $2.22 a share beat the $2.09 consensus. The stock traded down 2 percent to $225.73 on Tuesday, giving the company a market value of about $5.4 trillion.
Stevens' retained stake is the number that matters most to investors weighing the signal. Insider sales can reflect diversification, tax planning or pre-arranged 10b5-1 trading plans rather than a view on valuation, and the former Sequoia Capital managing partner keeps the overwhelming share of his exposure in the company.
The pattern still bears watching because Stevens is Nvidia's most frequent insider seller. He previously sold 885,000 shares in June at an average $210.17, a transaction worth $186 million that cut his ownership by 14.5 percent, filings show. Executive vice president Timothy Teter also sold 30,000 shares Aug. 31 at $217.88 under a pre-arranged 10b5-1 plan. Across the company, insiders have sold 1.56 million shares worth $335 million over the past 90 days, with insiders holding 3.94 percent of Nvidia.
For shareholders, operating performance outweighs one director's portfolio decisions. Data-center demand and the ramp of Nvidia's Blackwell and Vera Rubin products underpin analyst price targets that average $324.83, about 44 percent above Tuesday's close, with 52 of 55 covering analysts rating the stock buy or strong buy. Investors will watch whether additional executives sell and whether the reduction persists into the next earnings cycle as the clearest test of the signal.
This article is for informational purposes only and does not constitute investment advice.
