NVIDIA Corporation's (NASDAQ:NVDA) stock rose 6.1% last week, but insiders who sold US$156m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$212, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
NVIDIA Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Mark Stevens, for US$51m worth of shares, at about US$186 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$132. So it is hard to draw any strong conclusion from it.
Insiders in NVIDIA didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does NVIDIA Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that NVIDIA insiders own 4.0% of the company, worth about US$13b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The NVIDIA Insider Transactions Indicate?
The fact that there have been no NVIDIA insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of NVIDIA, we can't say the same about the selling of shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for NVIDIA.
Of course NVIDIA may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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