NVIDIA CEO Huang Sells 100,000 Shares in 10b5-1 Plan as Stock Rebounds 53%

NVIDIA CEO Jensen Huang has initiated a new 10b5-1 trading plan, which allows him to sell up to 6 million shares by the end of this year. This plan was established in March in accordance with SEC Rule 10b5-1, which permits insiders to sell stock at a predetermined time, even if they may possess material nonpublic information thereafter. These plans are designed to protect executives from insider trading allegations.

Huang's new 10b5-1 trading plan was officially launched on June 24th. According to the latest U.S. Securities and Exchange Commission (SEC) filing, Huang sold 100,000 shares between Friday and Monday, worth $14.4 million. This sale is part of the new 10b5-1 trading plan. Under the 10b5-1 plan, Huang can exercise options for 6 million shares by the end of the year, calculated at Monday's closing price of $144, with this portion of the stock worth approximately $865 million.

NVIDIA's stock price fell below $100 earlier this spring and has since rebounded by 53%, closing at around $144 as of Monday. This rebound in stock price may have influenced Huang's decision to initiate the 10b5-1 trading plan.

In addition to Huang, NVIDIA board member and billionaire Mark Stevens has also begun selling stock. According to another SEC filing, Stevens sold over 600,000 shares on June 18th, worth approximately $88 million. This sale is not part of a 10b5-1 trading plan and may be influenced by different factors.

The initiation of Huang's 10b5-1 trading plan and the sale of shares by Stevens may have implications for NVIDIA's stock price and market sentiment. However, it is important to note that these sales are part of a predetermined plan and are designed to protect executives from insider trading allegations.