Nvidia Corp ‘s (NASDAQ:) Executive Vice President and Chief Financial Officer, Colette Kress, has made significant trades in the company’s stock, according to a recent filing. Kress sold a total of 59,670 shares worth more than $7.7 million. The trades took place on September 20, 2024 under a pre-arranged trading plan.
Sales occurred at weighted average prices ranging from $116.19 to $118.05. Specifically, Kress sold 45,510 shares at an average price of $116.19, with individual sales prices ranging from $115.67 to $116.67. Another batch of 14,291 shares sold at an average price of $117.15, with prices ranging from $116.68 to $117.65. The last set of 6,869 shares sold at an average price of $118.05, within a range of $117.68 to $118.52.
These transactions follow an earlier stock sale by Kress on September 18, in which 68,609 shares were retained by Nvidia to meet tax obligations upon vesting of restricted stock units valued at a price of $115.59 per share, which in total approximately $7.9 million.
Following these transactions, Kress’ direct holdings in Nvidia were updated to 4,954,214 shares. In addition, there are indirect holdings through a limited liability company linked to an irrevocable trust, totaling 767,680 shares, and smaller amounts held indirectly by immediate family members.
Investors often monitor insider transactions to understand management’s sentiment about the company’s prospects. The sales by Nvidia’s CFO were planned in advance, in accordance with SEC Rule 10b5-1, which allows company insiders to set up predetermined trading plans to buy or sell shares.
In other recent news, ChatGPT maker OpenAI is in the midst of a major funding round that could boost its valuation to $150 billion, depending on a successful restructuring and the removal of a profit cap for investors. The funding round is expected to raise $6.5 billion and is attracting interest from existing investors such as Microsoft (NASDAQ:), Thrive Capital and Khosla Ventures. New investors including Nvidia and Apple (NASDAQ:) are also planning to join, with Sequoia Capital in talks to return as an investor.
Meanwhile, Nvidia’s significant stock rally has contributed to about a quarter of the S&P 500’s 17% gain this year, with the chipmaker’s performance having a major impact on the market. The company’s shares were also the most actively traded in the options market on most days.
In other developments, following the recent Federal Reserve rate cut, US stock index futures rose significantly, with Nasdaq futures leading the way. Tech giants like Microsoft, Meta (NASDAQ:) and Alphabet (NASDAQ:) each rose more than 1.5%, and the semiconductor sector posted solid gains, with Nvidia up 2.8%. Moreover, market participants expect a further 25 basis point rate cut at the Fed’s November meeting.
InvestingPro Insights
As Nvidia’s (NASDAQ:NVDA) Executive Vice President and Chief Financial Officer Colette Kress focuses on planned stock transactions, investors and analysts are keeping a close eye on the company’s performance metrics and future prospects. According to InvestingPro, Nvidia boasts a perfect Piotroski Score of 9, indicating very healthy financial health, which could inspire confidence in the company’s fiscal management and operational efficiency.
Furthermore, Nvidia is known for its impressive gross profit margins, a testament to its pricing prowess and cost management strategies. This financial measure is particularly relevant because it reflects the company’s ability to convert sales into profits, a key aspect for investors to consider after insider transactions.
InvestingPro data also shows that Nvidia is a prominent player in the Semiconductors & Semiconductor Equipment sector, which could impact the stock’s attractiveness for investors seeking exposure to a leading company in a crucial and growing sector of the technology market.
For those seeking deeper insights and additional analysis, InvestingPro offers a comprehensive list of 21 tips for Nvidia, including revenue growth anticipation, upward earnings revisions by analysts, and the company’s market performance over various time frames. By consulting these tips on InvestingPro, investors can gain a more nuanced understanding of Nvidia’s stock potential and performance prospects.
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