Jensen Huang cashes out $14.4 million: NVIDIA executives' intensive sell-off attracts market attention
NVIDIA CEO Jensen Huang sold 100,000 shares of the company stock from June 20 to 23, cashing out $14.4 million, as part of his 10b5-1 trading plan. Jensen Huang plans to gradually sell up to 6 million shares by the end of the year, with a potential sell-off scale of up to $865 million. In addition, director Mark Stevens also reduced his holdings. Market analysts point out that executive sell-offs are relatively common in technology companies, especially when stock prices reach new highs
According to the latest disclosure documents from the U.S. Securities and Exchange Commission (SEC), NVIDIA (NVDA.US) CEO Jensen Huang recently initiated his stock reduction plan, selling a total of 100,000 shares of the company stock in two transactions between June 20 and 23, cashing out a total of $14.4 million.
This transaction falls under NVIDIA's 10b5-1 pre-arranged trading plan filed in March, which allows Jensen Huang to gradually sell up to 6 million shares before the end of the year. Based on the closing price of $144.17 on June 24, the potential scale of the sell-off could reach $865 million.
As the 12th richest person in the world, the majority of Huang's current net worth of $126 billion is composed of NVIDIA equity. The Billionaires Index shows that he has reduced his holdings in the company by over $1.9 billion through various transactions this year. Notably, the disclosed reduction pace aligns with the planned arrangement, and the latest documents also indicate that Huang plans to sell another 50,000 shares soon, with the market continuing to monitor whether his subsequent actions strictly adhere to the established timetable.
Jensen Huang is not the only one on NVIDIA's board engaging in reduction operations. Director Mark Stevens sold 608,000 shares at an average price of about $145 per share on June 18, cashing out approximately $88 million in a single day. Unlike Huang, Stevens did not use the 10b5-1 trading plan but directly submitted a proposal to reduce up to 4 million shares. So far, he has completed a reduction of over 2 million shares in the secondary market, with wealth indices showing Stevens' net worth to be around $9.8 billion.
Market analysts point out that executive sell-offs are common among tech giants, especially against the backdrop of record-high stock prices. By using pre-set trading plans, executives can balance personal asset allocation needs with maintaining investor confidence. NVIDIA's stock price has increased by over 140% this year, with a market capitalization exceeding $3.3 trillion, but the company has not provided any additional explanations regarding the executive sell-offs
