(Bloomberg) -- While corporate insiders are increasingly betting on shares of their own firms, bosses at the S&P 500’s best-performing company are cashing in.
Nvidia Corp. executives and directors last month sold or filed paperwork showing they intend to sell roughly 370,000 shares worth about $180 million, according to data compiled by the Washington Service. If all of the shares were sold, it would be the biggest monthly disposal by dollar value in at least six years.
After more than tripling in 2023, Nvidia shares have turned sluggish. The stock has fallen more than 6% since Nov. 21, when the company gave a forecast for revenue in the current quarter that exceeded the average analyst estimate by about $2 billion, fueled by heavy demand for artificial intelligence computing chips.
It’s understandable that insiders would want to lock in gains after such a stellar run, of course. However, selling hardly inspires confidence in a future rally. Nvidia insiders haven’t made any stock purchases since 2020, according to the Washington Service data.
“It is somewhat interesting that there has been a lot of sell activity and no buying,” said Shana Sissel, chief executive of Banrion Capital Management, which holds Nvidia shares. “Given how the stock price has done, the opportunity to monetize some of their compensation makes sense.”
A representative for Nvidia said the majority of the sales are based on 10b5-1 plans, in which the price, amount and dates of the sales are set in advance.
Among the four insiders who disclosed sales or intent to sell in November was Mark Stevens, a director at Nvidia since 2008. The former managing partner at venture capital firm Sequoia Capital filed a form 144 on Nov. 24 indicating the planned sale of 300,000 shares and sold 10,280 shares on Nov. 24 and Nov. 27. Stevens has sold hundreds of thousands of shares over the past few years and still has a stake in Nvidia worth about $2 billion, according to data compiled by Bloomberg. Other sellers include Debora Shoquist, executive vice president of operations, and Dawn Hudson, who joined Nvidia’s board in July.
In the S&P 500, corporate insiders stepped up buying of their own shares in November with the ratio of buyers to sellers poised to hit a six-month high, according to data from the Washington Service.
Tech Chart of the Day
The Nasdaq 100 Index edged higher by 0.1% last week, to gain for a fifth consecutive week — the tech-heavy benchmark’s longest winning streak since June. The rally has been driven partly by hopes of Federal Reserve interest rates peaking. The Nasdaq 100 shed more than 1% at market open on Monday.
Top Tech Stories
- Spotify Technology SA said it will cut headcount by 17% as the company confronts slower growth.
- One of the chipmaking industry’s small but indispensable suppliers is sinking deeper in debt because it’s refusing to raise prices to cover mounting capex costs.
- CoreWeave, a cloud computing provider that’s among the hottest startups in the artificial intelligence race, said it closed a minority stake sale to investors led by Fidelity Management & Research Co.
- Apple and Goldman Sachs are on the verge of splitting up, and Chase is the ideal partner to step in. Also: Sonos gets ready to take on Apple and others in headphones and TV set-top boxes; Apple continues eyeing 6G; and new retail stores are coming.
Earnings Due Monday
- No major earnings expected
--With assistance from Carmen Reinicke and Subrat Patnaik.
(Updates stock moves at market open)
©2023 Bloomberg L.P.