Top two shareholders selling NVIDIA, Huang Renxun has cashed out $42 million, not sold out yet?

The leading AI stock, NVIDIA, has recently experienced heavy selling pressure. According to SEC filings, the top two individual shareholders of NVIDIA have been selling their shares. CEO Jensen Huang has been selling shares for three consecutive days, cashing out approximately $42 million. NVIDIA's stock, with the ticker symbol NVDA, has plummeted recently, dropping by 6.36% this week and closing at $462.41 yesterday.

NVIDIA Executives Have Recently Sold Stock Frequently to Cash Out

In the past two weeks, there have been frequent reports of NVIDIA executives selling stock. Even before the largest shareholder Huang Renxun sold his shares, the second largest shareholder of NVIDIA, Mark Stevens, had already sold $25 million worth of NVIDIA shares by the end of August.

Huang Renxun, on the other hand, has been selling shares for three consecutive days and has now cashed out approximately $42 million.

Huang Renxun Planned to Sell Stock as Early as March

According to SEC documents, Huang Renxun planned to sell stocks as early as March 29th under the 10b5-1c rule, which was based on the exercise of stock options. In the capitalist United States, companies often use generous stock incentive schemes to attract and retain top executives, and stock options are the most common way. Companies usually set standards and deadlines to allow these top executives to acquire company shares at a low price through stock options when they perform well, gaining ownership of the company.

Previously, there was discussion about Coinbase CEO Brian Armstrong selling stocks before the lawsuit, raising questions about insider trading. However, the U.S. has strict regulations regarding stock sales by company insiders. The SEC's 10b5-1c rule is designed to prevent trading by insiders with significant inside information. The selling plan must be established or modified at least 90 days in advance, or else it could easily lead to SEC charges or lawsuits.

Smart move? Coinbase CEO Armstrong sold stocks the day before SEC lawsuit

Has Huang Renxun Finished Selling?

However, according to documents submitted to the U.S. Securities and Exchange Commission (SEC) on September 1st, CEO Huang Renxun applied to sell over 230,000 shares of NVIDIA stock in September, with a total market value of approximately $117 million. The $42 million sold in three days only accounts for about one-third of the total. Will there be more selling pressure on this AI leader stock in the future?

According to Bloomberg data, Huang Renxun is the fifth largest shareholder of NVIDIA and the largest individual shareholder, owning a total of 86.52 million shares of NVDA, accounting for 3.5% of the company's total issued shares of 2.47 billion. The shares being sold this time actually only account for 0.0096% of the total shares, which is a drop in the bucket. This selling pressure is likely due to the recent lack of positive market indicators, coupled with NVIDIA's 211% surge this year, causing investors to be cautious and leading to psychological panic!