Frequent shareholding by executives has led to a sharp drop in stock prices, which has fallen nearly 13% in the past three days. As of press time, Nvidia's stock fell another 1.11% after hours to $116.8. In addition, other chip stocks such as Coherent (COHR.US) also had executives selling their own shares. Among the CEOs in the chip industry, Nvidia CEO Huang Renxun was the one who sold the most shares. $NVIDIA (NVDA.US)$In addition, other stocks such as Coherent (COHR.US) also had executives selling their own shares. Among the CEOs in the chip industry, Nvidia CEO Huang Renxun was the one who sold the most shares.
Coherent (COHR.US) and other chip companies' executives are also selling their own stocks. Among the CEOs in the chip industry, Nvidia CEO Huang Renxun is the one who sold the most shares.$Micron Technology (MU.US)$, $Qualcomm (QCOM.US)$ and $Coherent (COHR.US)$Among CEOs in the chip industry, Huang Renxun, the CEO of Nvidia, sold the most shares. Other chip companies such as Coherent (COHR.US) also saw their executives selling their own shares.
After selling 720,000 shares, Huang Renxun can still sell 5.28 million shares before March 2025.
According to documents from the U.S. Securities and Exchange Commission (SEC), Jensen Huang sold 720,000 shares of Nvidia stock between June 13th and 21st, with a cash-out amount of $94.6 million and an average selling price of $131.44 per share, through a 10b5-1 plan adopted on March 14th, prior to March 2025, when he can sell an additional 5.28 million shares after cashing out 720,000 shares, and through which he solely held 80.7 million shares while controlling 605 million shares through trusts and holding 49 million shares through a partnership and an additional 132 million shares through other trust methods in his personal account, before becoming the biggest seller among chip industry CEOs.
After this transaction, Jensen Huang personally held 80.7 million shares of Nvidia's stock in his account. In addition, he controls 605 million shares through trust, 49 million shares through partnership, and an additional 132 million shares through other trust methods.
It was revealed that Jensen Huang originally planned to sell no more than 600,000 shares of Nvidia stock when submitting the sales plan. However, this plan was made before the company's 10-to-1 stock split, which took effect after the stock market closed on June 7th. According to the adjusted calculation after the stock split, his sales plan now covered 6 million shares of stock. Currently, Jensen Huang has sold 720,000 shares, which means Jensen Huang will sell an additional 5.28 million shares; this plan will continue until March 2025.
In addition, Nvidia's CFO Colette Kress and other executives, including Executive Vice President Deborah Shoquist, also reduced their holdings. The amount involved exceeded tens of millions of dollars.
According to data from Washington Service, excluding the impact of the 1-to-10 stock split on June 10th, Nvidia's executives and directors have sold about 770,000 shares of stock, cashing out more than $700 million or about RMB 5.1 billion from June to July 2021. Over one-third of insiders have chosen to reduce their holdings since Nvidia announced its first-quarter results on May 22nd, creating a new high for many years.
It is worth noting that Jensen Huang's sales plan was already disclosed at the end of March this year. At that time, Nvidia mentioned in its quarterly financial report that Jensen Huang would sell up to 600,000 shares of stock through a 10b5-1 plan before March 2025. Market analysts pointed out that the shares sold by Jensen Huang were part of his executive compensation plan, including restricted stock units (RSUs) and performance stock units (PSUs), which are common practices among CEOs when there are no violations.
Public information shows that executives and internal corporate staff often know some important information in advance due to the nature of their positions, which may affect the company's stock price. In order to prevent insiders from using this information for unfair trading, the U.S. Securities and Exchange Commission (SEC) allows executives and insiders to establish so-called "10b5-1 plans".
These plans must be established before insiders obtain any important non-public information, so insiders like Jensen Huang eliminate the suspicion of using non-public information for trading through these pre-set trading plans. Once established, these plans will automatically execute transactions when certain conditions are met, such as preset levels of stock price and trading volume.
Last year, Jensen Huang cashed out 237,500 shares of Nvidia stock at an average selling price of $463.95 per share (pre-stock split) through such pre-set trading plans.
The selling amounts of executives from Micron Technology, Qualcomm, and Coherent increased from last year.
Sanjay Mehrotra, President and CEO of Micron Technology, also reduced his holdings on a large scale this year. Between January and June, he cashed out a total of 457,280 shares of stock through an options program, with a total cash-out amount of $52 million and an average selling price of $113.65 per share. Since the beginning of this year, Micron's stock price has soared by 64%, and Mehrotra's average selling price has risen from around $82 at the beginning of the year to about $152 in mid-June.
Mehrotra's selling amount and cash-out amount have increased significantly from last year. In 2023, he reduced his holdings of 342,000 shares at an average selling price of $74.57 per share, with a total cash-out amount of $25.5 million.
In addition, Cristiano Amon, President and CEO of Qualcomm, cashed out a total of 40,500 shares of stock between January and May, with a total cash-out amount of $6.9 million and an average selling price of $169.92 per share. Since the beginning of this year, Qualcomm's stock price has risen by 47%, and Amon's average selling price has risen from about $150 in January to about $190 in mid-May.
Previously, his most recent stock sale occurred in December 2021, when he sold 5,400 shares of stock through a trading plan at a price of $189.50, totaling $1.02 million in proceeds.
In addition, Vincent 'Chuck' D. Mattera Jr., CEO of Coherent, has been serving as the company's chairman of the board since 2021. In February of this year, he informed the board that he had worked for the company for 20 years, serving as CEO for the last 8 years, and that he planned to retire after finding a successor.
However, informing the board of his retirement did not stop Mattera from selling stocks. From March to May of this year, Mattera sold a total of 15,000 shares of Coherent stock through a trading plan, totaling $846,700 in proceeds at an average selling price of $56.45 per share. According to Mattera's trading plan adopted on December 7, 2021, he plans to sell up to 65,000 shares of Coherent stock by the end of 2024 and use stock options to buy and sell up to an additional 128,620 shares of stock.
In 2023, Mattera sold 61,000 shares of stock in a series of planned trades in June at a price of $54 per share, realizing proceeds of $3.3 million. By entering 2024, Coherent's stock price had increased significantly by 65%.
On June 3, the company announced a new CEO, Jim Anderson, who previously served as President and CEO of $Advanced Micro Devices(AMD)$. With Mattera's retirement and departure from the board of directors, he is no longer considered an insider of the company and thus no longer needs to disclose his trading activities in Coherent's stock to regulatory agencies.$Lattice Semiconductor (LSCC.US)$Executives at Nvidia and other chip companies are selling their own stocks. Among chip industry CEOs, Huang Renxun is the one who sold the most shares. On June 3, the company announced a new CEO, Jim Anderson, who previously served as President and CEO of $Advanced Micro Devices(AMD)$. With Mattera's retirement and departure from the board of directors, he is no longer considered an insider of the company and thus no longer needs to disclose his trading activities in Coherent's stock to regulatory agencies.
Edited by Jeffrey