3 CEOs Selling Gobs of Stock Just Like the Head of SVB Did

Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) CEO Jensen Huang is one of my favorite CEOs in America. What he’s done for the technology sector since co-founding the company in 1993 is unbelievable.  

He’s also made shareholders a lot of money, especially those who bought in early. NVDA stock went public in 1999 at $12 a share. Today, it trades for nearly $280 a share, and that’s after its 2021 4-for-1 stock split.

In early January, Barron’s reported that Huang, who routinely sells shares of Nvidia stock on the open market, stopped doing so in March 2022 as the stock continued to slip. At the time, the chipmaker was struggling with supply issues caused by Russia’s invasion of Ukraine.

Huang still sold $202 million of stock in the first two months of 2022. Of course, it’s easier to do that when your stock has an average daily volume of over 50 million shares. There’s yet to be any selling in 2023. 

In case you’re wondering, Huang received $23.7 million in total compensation in fiscal 2022 (January year-end). Huang’s stock-based compensation accounted for 79% of his total pay package in 2022.

In this case, the fact that Huang stopped selling is the same as making a big buy on the open market. That’s capital allocation done right.