Nvidia Stock Sees Warning Signs of Insider Trading Activity

Earlier in September, during a particularly turbulent period for Nvidia (NASDAQ:
NVDA
) and the
stock market
more broadly, the semiconductor giant’s senior officers were noted for selling vast volumes of company shares.
Though the situation has calmed somewhat by the second half of the month, Nvidia executives have continued trading NVDA stock with the
most recent
major sale involving the Chief Financial Officer Colette Kress.
To be precise, Kress sold 66,670 shares on September 20 at an average price of $116.59, netting approximately $7.7 million.
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Nvidia stock sale by CFO Colette Kress. Source: Barchart
On the very same day, the chipmaker’s Principal Accounting Officer, Donald Robertson, made another, albeit smaller, sale of $4,500 shares. The trade was executed at a somewhat lower average price of $116.51 and made a total of about $524,293.
Nvidia CEO sells more than $100 million of NVDA stock in 10 days
While Kress’ and Robertson’s sales were not small by any means, they are both, nonetheless,
dwarfed
by the recent activities of Nvidia CEO Jensen Huang. Indeed, between September 4 and September 16, Huang offloaded 1.2 million NVDA shares.
Cumulatively, the sold stock was worth approximately $132 million as the average prices ranged from $104.35 to $118.97.
Other senior Nvidia personnel who sold significant numbers of NVDA shares in September include the Vice President of Operation Debora Shoquist and General Counsel and Secretary Timothy Teter.
Why Nvidia insider trades made investors nervous
The recent insider trades – and particularly the 1.2 million shares sold by Huang – drew particular attention as they coincided with a string of turbulent events.
First of these was a
major stock market sell-off
that, among its other effects, ensured Nvidia experienced the biggest one-day market capitalization drop of any company in history.
Soon after, news broke that the chipmaker
received a subpoena
from the U.S. government over some of its business practices – an allegation that, despite being
denied
by the firm, only raised further concerns and triggered additional volatility.
Finally, while the situation has calmed significantly by press time on September 23, there remains an air of unease. Many investors have pointed out that the FED’s recent 50 basis points interest rate cut is akin to similar actions taken mere months before past recessions.
The notion is particularly concerning with regard to Nvidia as, for all of its successes in the stock market and on the business side in the last two years, it is also widely expected it could be hit fast and hard in case of a crash.
One veteran economist, for example, forecasted that should the artificial intelligence (AI) bubble burst, NVDA shares
could plummet 98%
.
What is next for Nvidia stock
Despite the fears, Nvidia appears in fairly good shape at press time on September 23 as it has slowly started regaining upward momentum.
Although NVDA shares are 8.07% in the red in the last 30 days, they are, given Nvidia’s price today of $116.17, 12.97% above their September lows.


NVDA stock 30-day price chart. Source: Finbold
Additionally, as one popular analyst on
TradingView
noted recently
, the semiconductor stock appears to have formed a Cup & Handle chart pattern and is headed for a massive bullish breakout.
On the other hand, while another significant indicator, the True Strength Indicator (TSI), hints that NVDA is poised for an upward move, the chipmaker’s shares are yet to form a bullish crossover
indicating
the expected rally is not, at press time, imminent.
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