Nvidia CEO Plans to Offload $800 Million in Stock -- Time to Follow?

GuruFocus.com
06-04

June 4 - Nvidia (NASDAQ:NVDA) CEO Jensen Huang plans to sell up to 6 million shares, worth roughly $810 million, by the end of 2025, according to a regulatory filing made under a pre-arranged Rule 10b5-1 trading plan.

The move isn't sudden or unusual. Huang's sale was set up in March and is part of a scheduled program that allows executives to sell stock without violating insider trading rules. These sales occur at predetermined times, regardless of market conditions or company performance.

  • Warning! GuruFocus has detected 4 Warning Signs with NVDA.

Huang, who still owns over 922 million shares, more than 3.7% of Nvidia, remains one of the chip giant's biggest shareholders. The sale amounts to less than 1% of his stake and appears to be more about locking in gains than losing faith.

Nvidia stock has skyrocketed 1,400% over the past five years, and Huang has played a central role in that run. He recently described the company as being off to the races in its next phase of AI-driven growth.

Is NVDA Stock a Buy or Sell?

Based on the one year price targets offered by 51 analysts, the average target price for NVIDIA Corp is $174.45 with a high estimate of $372.87 and a low estimate of $100.00. The average target implies a upside of +23.53% from the current price of $141.22.

Based on GuruFocus estimates, the estimated GF Value for NVIDIA Corp in one year is $273.32, suggesting a upside of +93.54% from the current price of $141.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the Forecast page.

This article first appeared on GuruFocus.

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