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Nvidia director Stevens sells over $20 million in company stock

Published 07/15/2024, 05:05 PM
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Nvidia Corp (NASDAQ:NVDA) director Mark A. Stevens has sold a significant portion of his holdings in the company, according to the latest SEC filings. The transactions, which took place on July 12, involved the sale of 156,023 shares of common stock at prices ranging from $129.75 to $129.94, with a weighted average price of $129.8146 per share. The total value of the shares sold amounted to approximately $20,254,063.

Stevens, who is also a trustee of The 3rd Millennium Trust and the Envy Trust, conducted the sales indirectly through these trusts. It is noted that Stevens and his wife are co-trustees of The 3rd Millennium Trust, while he is the trustee of the Envy Trust. The nature of these transactions suggests a strategic adjustment to Stevens' investment in Nvidia, although the specific reasons for the sales were not disclosed in the filings.

Following the transaction, Stevens still holds a substantial number of shares in the company. The remaining shares owned by Stevens, as reported in the SEC filing, are held indirectly through the mentioned trusts. The 3rd Millennium Trust holds 8,585,217 shares, and the Envy Trust holds an additional 17,251,950 shares, demonstrating that Stevens maintains a significant interest in Nvidia's performance.

Investors often monitor insider transactions as they can provide insights into the executives' confidence in the company's future prospects. However, such sales are not uncommon and can occur for various reasons, including diversification, tax planning, or personal financial management.

Nvidia, headquartered in Santa Clara, California, is a leading manufacturer of graphics processing units (GPUs) and has a broad presence in the semiconductor industry. The company has consistently been at the forefront of technological innovation, especially in areas like gaming, professional visualization, data centers, and artificial intelligence.

The sale was officially filed with the Securities and Exchange Commission on July 15, with the transactions detailed in the Form 4 document. Interested parties can request full information regarding the number of shares sold at each separate price from the SEC, Nvidia, or directly from the reporting person, Mark A. Stevens.

In other recent news, Nvidia, a leading chipmaker, is currently under investigation by the French competition authority for suspected anti-competitive practices. This development follows earlier predictions that Nvidia might face charges from the French antitrust regulator. Concurrently, Nvidia's shares have seen a significant surge, posing potential risks for concentrated portfolios. According to data from Morningstar, 355 actively managed funds reported positions of 5% or more of their assets in Nvidia at the end of the first quarter.

On a different note, Taiwan Semiconductor Manufacturing Co (TSMC), a key supplier to Nvidia, is set to announce a 30% jump in its second-quarter profit, driven by robust demand for AI chips. The anticipated net profit for the quarter ending June 30 is projected to be T$236.1 billion ($7.25 billion), a significant increase from T$181.8 billion in the same period last year.

In the meantime, Benchmark has raised its price target for Nvidia to $170.00 from $135.00, while maintaining its Buy rating on the stock. This adjustment is based on Benchmark's confidence in Nvidia's continued dominance in the AI sector and its potential for revenue and earnings growth in the coming years. These are the latest developments in the tech industry.

InvestingPro Insights

In light of the recent insider transactions by Nvidia Corp (NASDAQ:NVDA) director Mark A. Stevens, InvestingPro data provides a broader context on the company's financial health and market performance. Nvidia's current market capitalization stands at a robust $3.15 trillion, reflecting its significant presence in the semiconductor industry. Despite the insider sales, Nvidia's financial metrics remain strong, with a substantial revenue growth of 208.27% over the last twelve months as of Q1 2025, indicating a rapidly expanding business. Moreover, the company's high gross profit margin of 75.29% during the same period suggests efficient operations and a solid competitive edge in its market segment.

InvestingPro Tips highlight Nvidia's perfect Piotroski Score of 9, which points to a very healthy financial condition, and analysts are anticipating sales growth in the current year, underscoring the company's potential for continued expansion. These insights are particularly relevant for investors considering the implications of insider selling and the overall investment attractiveness of Nvidia. With these metrics in mind, investors may find additional value in exploring more tips on Nvidia, available through InvestingPro, where there are 19 additional tips listed for the company.

For investors looking to delve deeper into Nvidia's financials and gain access to exclusive market insights, using the promo code PRONEWS24 can provide up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to InvestingPro. This offer could be an excellent opportunity for those seeking comprehensive analysis and data to inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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