(Bloomberg) — Company executives and directors at the best-performing company in the S&P 500 have been selling millions of dollars’ worth of shares recently, data reveals. Nvidia Corp. heads have unloaded around 370,000 shares valued at approximately $180 million, marking the largest monthly sale in at least six years if all shares are indeed sold.
After experiencing significant growth, Nvidia shares have plateaued lately, dropping about 6% since the company exceeded analyst projections for revenue in the current quarter. This success was driven by a surge in demand for artificial intelligence computing chips.
While it’s logical for insiders to cash in on strong stock performance, their significant selling raises questions about future market confidence, particularly since there hasn’t been any insider buying since 2020. The robust growth of Nvidia’s stock price provides a lucrative opportunity for executives to convert their compensation into cash.
Nvidia representatives have stated that the majority of these sales are part of plans based on specific predetermined factors such as price, amount, and sale dates. Among the company insiders who have recently disclosed sales or intent to sell shares are director Mark Stevens, who has planned the sale of 300,000 shares and already sold over 10,000 shares.
When compared to corporate insiders in the S&P 500, recent data from the Washington Service shows that the ratio of buyers to sellers of their own company’s shares has increased, poised to reach a six-month high in November.
Meanwhile, the Nasdaq 100 Index, driven in part by hopes of Federal Reserve interest rates peaking, has experienced a rally with five consecutive weeks of gains. However, Nasdaq 100 futures were slightly down on Monday.
Some other noteworthy tech stories include Spotify’s announcement of a 17% workforce reduction, an essential chip supplier struggling with mounting debts, and CoreWeave, a venture making strides in the artificial intelligence race, closing a minority stake sale to investors led by Fidelity Management & Research Co.
Lastly, rumors suggest Apple and Goldman Sachs may part ways, paving the way for Chase to become a new partner. As well, Sonos is preparing to compete with Apple in the headphone and TV set-top box markets, and Apple continues to have an eye on 6G technology while also planning new retail stores.
Earnings reports are also expected Monday.
–With assistance from Carmen Reinicke and Subrat Patnaik.
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