Monster Insider Trading Alert for Nvidia Stock (NVDA)

The recent heavy insider trading activity in Nvidia (NASDAQ: NVDA) stock has many investors concerned as NVDA shares have suffered during this sell-off, losing nearly 13% of their value.

However, according to insiders, this is not yet the case, as CEO Jensen Huang has requested another sale of NVDA shares.

On July 1, Huang filed an application to sell an additional 234,000 NVDA shares valued at approximately $29.7 million, bringing the total number of shares sold in the last three weeks to $184 million.

Other NVDA insiders were also active

Contrary to retail investor optimism, Nvidia insiders, including top executives and directors, have been aggressively selling their shares. They include board member Tench Coxe, CFO Colette Kress and several directors.

Coxe sold around 100,000 Nvidia shares last month at an average price of $119, making a total profit of $11.9 million.

Kress was more active and sold almost three times as much as her colleague: she sold 264,000 shares and made a profit of $32 million.

In total, there were 23 insider sales of NVDA shares compared to 0 purchases in the last three months, for a total of 2,461,421 shares sold.

Institutional investors lose confidence in NVDA

On June 27, Wells Fargo announced adjustments to its Signature Picks equity portfolio, reducing its overweight position in Nvidia from 6.8% to 5% for “risk reasons.”

In addition, veteran technology investor Paul Wick of Seligman Investments has reduced his holdings in Nvidia as he expressed doubts about the company’s future earnings growth.

Speaking at a UBS Group event in Singapore, Wick mentioned that his enthusiasm for Nvidia had waned in the past week or two, but he did not disclose the extent of his NVDA involvement.

Strong insider activity, coupled with selling by institutional shareholders, could indicate a potential decline in NVDA’s share price in the future.

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