For NVIDIA Corporation (NASDAQ:NVDA) insiders, selling US$156m worth of stock earlier this year was a smart move.

NVIDIA Corporation (NASDAQ:NVDA) shares are up 6.1% last week, but insiders, having sold $156 million worth of stock over the past year, are likely in a more advantageous position. Selling at an average price of $212, which is higher than the current price, may have been the right choice, as holding the shares would have meant their investment would be worth less now than they were at the time of the sale.
While we believe shareholders should not simply track insider transactions, we believe it makes perfect sense to keep tabs on insider activity.
Check out our latest analysis for NVIDIA
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NVIDIA Insider Transactions Over the Last Year
Over the past year, we can see that the largest insider sale of stock, valued at $51 million at approximately $186 per share, was by independent director Mark Stevens. While we don't typically like to see insider sales, it's more concerning when the sales happen at a lower price. The good news is that this big sale was well above the current price of $132. It is therefore difficult to draw clear conclusions from this.
NVIDIA insiders haven't bought any shares in the past year. Below is a visual representation of insider transactions (both corporate and individual) over the past 12 months. If you want to know exactly who sold how much and when, just click on the graphic below!
Insider Trading Volume
If you like buying stocks that insiders are buying rather than selling, then you might love this free list of companies. (Hint: Insiders bought them).
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Does NVIDIA offer high insider participation?
I like to look at how many shares insiders own in a company to support my opinion on how well they match insiders. A high proportion of insiders often means that the company management takes the interests of the shareholders more into account. It's great to see that NVIDIA Insiders own 4.0% of the company, valued at roughly $13 billion. Most shareholders would appreciate this type of insider ownership, as it suggests that management's incentives are well-aligned with other shareholders.
So what do the NVIDIA Insider Transactions show?
The fact that there haven't been any NVIDIA Insider transactions lately certainly doesn't bother us. While we're excited about NVIDIA's high level of insider ownership, we can't say the same about selling shares. So be sure to check out this FREE Analyst Forecasts Report for NVIDIA.
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Of course, NVIDIA might not be the best stock to buy. You might want to check out this free collection of quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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