Nvidia CFO Colette Kress Sells Shares Valued at Over $7.7 Million

Nvidia Corp’s Executive Vice President and Chief Financial Officer, Colette Kress, conducted noteworthy transactions involving the company’s stock, as revealed in a recent filing. On September 20, 2024, Kress sold a total of 59,670 shares, valued at over $7.7 million, under a pre-arranged trading plan.

The shares were sold at average prices between $116.19 and $118.05. Specifically, Kress sold 45,510 shares at an average price of $116.19, with prices ranging from $115.67 to $116.67. Another 14,291 shares were sold at an average of $117.15, with individual prices between $116.68 and $117.65. The last batch of 6,869 shares was sold at an average price of $118.05, within a range of $117.68 to $118.52.

These recent sales followed Kress’s earlier transaction on September 18, during which Nvidia withheld 68,609 shares to cover tax obligations related to the vesting of restricted stock units. Those shares were valued at approximately $7.9 million, with an individual price of $115.59 each.

After these transactions, Kress holds 4,954,214 shares directly in Nvidia. Additionally, there are 767,680 shares held indirectly through a limited liability company linked to an irrevocable trust, along with smaller amounts owned by immediate family members.

Insider transactions like these are closely monitored by investors as they can indicate executive sentiment regarding the company’s future. It’s notable that Kress’s recent sales were pre-planned in accordance with SEC Rule 10b5-1, enabling company insiders to set up predetermined trading plans.

In other developments, OpenAI is currently engaged in a significant funding round that could elevate its valuation to $150 billion, dependent on a successful restructuring and the removal of a profit cap for investors. This funding round aims to raise $6.5 billion and is drawing interest from existing investors such as Microsoft, Thrive Capital, and Khosla Ventures. Notably, new investors like Nvidia and Apple are expected to participate, with Sequoia Capital in discussions for potential involvement.

Nvidia’s impressive stock performance has accounted for about a quarter of the S&P 500’s 17% increase this year, significantly influencing market dynamics. The company’s shares have frequently been among the most actively traded in the options market.

Moreover, after the Federal Reserve’s recent interest rate cut, U.S. stock index futures surged, particularly benefitting Nasdaq futures. Major tech companies such as Microsoft, Meta, and Alphabet saw gains of over 1.5%, while the semiconductor sector experienced strong growth, with Nvidia’s stock rising by 2.8%. Market analysts are also predicting a possible further rate cut of 25 basis points at the Fed’s upcoming November meeting.

As Kress engages in these stock transactions, both investors and analysts are paying close attention to Nvidia’s performance and outlook. The company is noted for its strong financial health, reflected in its perfect Piotroski Score of 9, which suggests effective fiscal management and operational efficiency.

In addition, Nvidia is recognized for its substantial gross profit margins, highlighting its pricing power and cost management. This is a vital indicator for investors evaluating the stock’s potential.

Those interested in deeper analysis can find a range of insights regarding Nvidia’s anticipated sales growth, analyst earnings projections, and overall market performance, offering a comprehensive view of the company’s stock outlook.