Huang Renxun suddenly sold stocks again!
According to a document from the US Securities and Exchange Commission (SEC), Huang Renxun sold Nvidia (NVDA. US) stock worth $30.6 million again this week, on July 15th and 16th, at a price between $126.34 and $130.34 per share. Currently, Huang Renxun still holds approximately 78.7 million shares of Nvidia stock.
According to incomplete statistics, Huang Renxun has sold stocks more than 10 times in the past month, cashing out a total of over 200 million US dollars. During this period, Nvidia's stock also experienced significant fluctuations. During the same period, the volatility of US chip stocks was also significant, and the trend of US stocks gradually weakened.
It is worth noting that since June, many wealthy Americans have been selling stocks. So, does this mean that the US stock market is about to enter a period of volatility?
Huang Renxun has sold stocks multiple times
According to the latest news, a document from the US Securities and Exchange Commission (SEC) shows that Huang Renxun sold Nvidia shares worth $30.6 million again this week, on July 15th and 16th, at a price between $126.34 and $130.34 per share. The transaction reported was conducted in accordance with the 10b5-1 trading plan approved by the reporter on March 14, 2024
So, what are the specific details of the 10b5-1 trading plan? According to a regulatory document from Nvidia cited by Barron's Weekly, Huang Renxun launched the so-called 10b5-1 rule trading program on March 14 this year, and he will sell no more than 600000 shares of Nvidia stock before March 31, 2025. When preset conditions such as price and trading volume are met, the 10b5-1 plan will automatically execute stock trading, aiming to eliminate any advantages that internal personnel may gain from understanding significant non-public information. It is worth noting that when the plan was proposed, Nvidia had not yet undergone a stock split.
According to data from foreign media websites, in the past month (from June 20th to present), according to incomplete statistics, Huang Renxun has executed more than 10 sales plans. These operations each end with the sale of 120000 shares, with a cash out amount ranging from $14 million to $16 million. The maximum single transaction amount is the one on June 20th, with a total value of 16.3044 million US dollars.
After experiencing a sharp drop on Wednesday, Nvidia opened at $117.99 per share on Thursday. The 50 day moving average price of the stock is $116.97, and the 200 day moving average price is $90.58. NVIDIA's 12-month low is $39.23 and the 12-month high is $140.76. On Thursday, it closed up 2.63%, with a closing price exceeding $121 and a closing market value of $2.98 trillion.
This sell-off has caught the attention of investors, prompting many to reassess their holdings. Some market analysts believe that the selling behavior of Huang Renxun and other executives indicates a lack of confidence in the company's recent stock price performance, which may indicate that the company's stock price will continue to decline. But some analyses suggest that internal personnel selling stocks may have been a pre planned sale, or it could indicate that they are concerned about the company's prospects, or that they believe the stock price is too high. The sale of stocks by internal personnel should not be considered as the sole indicator for making investment or trading decisions.
In fact, not only Huang Renxun, but also many wealthy Americans are selling stocks or have plans to sell stocks. After the market closed on July 2nd Eastern Time, regulatory documents submitted by Amazon to the US Securities and Exchange Commission showed that the company's founder, Bezos, plans to sell 25 million shares of Amazon stock worth nearly $5 billion. In June of this year, Meta disclosed 27 insider transactions, including a total of 10 transactions related to CEO Mark Zuckerberg. Dell Technologies founder Michael Dell sold approximately 1.4802 million shares of Dell Technologies' Class C common stock through six transactions between June 6 and 10, 2024, cashing out a total value of over $198 million.
What's wrong with the US stock market?
Last night, the Dow Jones Industrial Average closed down 533.06 points, or 1.29%, to 40665.02 points, ending a streak of consecutive closing highs. The S&P 500 index fell 43.68 points to 5544.59 points, a decrease of 0.78%. Except for energy stocks (. SPNY), all major S&P 500 indices closed lower. The Nasdaq Composite Index fell 125.70 points, or 0.70%, to 17871.22, giving up its early gains. The MSCI Global Equity Index fell 6.64 points, or 0.81%, to 816.95 points.
Gene Goldman, Chief Investment Officer of Cetera Investment Management in California, stated that the sell-off in technology stocks seems to be spreading to other parts of the market. It is expected that Republican presidential candidate Donald Trump will make further comments at the Republican National Convention later on Thursday, which may exacerbate people's tension.
Rich Ross, the head of technical analysis at Evercore ISI, stated in a report on Thursday that his tactical concerns have become even stronger as the stock market quickly enters its worst period. He elaborated that as we enter the weakest two months and the stock market continues to decline for several months, there will be greater room for tactical downturns in the coming weeks, and the market will be at its highest level in history.
Goldman Sachs strategist Scott Rubner stated that there is no other path for the S&P 500 index to take except for a decline, warning that he will not buy on dips. He believes that July 17th is a turning point in the history of stock market returns, and the following August is usually the month with the most severe outflow of funds from passive stocks and mutual funds. The unfavorable seasonal factors, excessive positions, and all positive news have been digested by the market, and the next two weeks of August will face 'painful weeks'.