Form 4: NVIDIA CFO Colette Kress Sells Shares Under 10b5-1 Trading Plan
SEC Form 4 Filing
NVIDIA's Chief Financial Officer, Colette Kress, sold a total of 66,670 shares of company stock on September 20, 2024, under a pre-arranged trading plan.
Summary
- Colette Kress, the EVP & Chief Financial Officer of NVIDIA, reported several transactions involving the company's common stock.
- On September 18, 2024, 68,609 shares were withheld to cover taxes related to vesting restricted stock units.
- On September 20, 2024, Ms. Kress sold 45,510 shares at an average price of $116.1898, 14,291 shares at an average price of $117.1491, and 6,869 shares at an average price of $118.0486.
- These sales were executed under a Rule 10b5-1 trading plan adopted on March 22, 2024.
- Following these transactions, Ms. Kress directly owns 4,954,214 shares of NVIDIA common stock.
- She also indirectly owns 767,680 shares through a limited liability company, and 8,000 shares through immediate family members.
Sentiment
Score: 5
Explanation: The document is a routine disclosure of stock sales by an executive under a pre-arranged plan, which is neither positive nor negative in itself.
Risks
- Executive stock sales can sometimes be perceived negatively by the market, although these sales were under a pre-arranged trading plan.
Industry Context
Executive stock transactions are a normal part of corporate activity, and the use of a 10b5-1 trading plan is a common practice to avoid accusations of insider trading. This filing is a routine disclosure of such activity.
Comparison to Industry Standards
- The use of 10b5-1 trading plans is a standard practice among executives at publicly traded companies, including technology companies like NVIDIA's peers such as AMD, Intel, and Qualcomm.
- These plans allow executives to sell shares at predetermined times and prices, mitigating the risk of insider trading allegations.
- The volume of shares sold by Ms. Kress is not unusual for a CFO of a company of NVIDIA's size and market capitalization.
Stakeholder Impact
- The stock sales may have a minor impact on the stock price, but the use of a 10b5-1 plan suggests the sales were planned and not based on any new information.
Key Dates
| Date | Description |
|---|---|
| 03/22/2024 | Date the Rule 10b5-1 trading plan was adopted by Colette Kress. |
| 08/30/2024 | Date of purchase of 631 shares through the Employee Stock Purchase Plan. |
| 09/18/2024 | Date 68,609 shares were withheld for tax purposes. |
| 09/20/2024 | Date of the reported stock sales by Colette Kress. |
Keywords
NVIDIA, Colette Kress, stock sale, Form 4, insider trading, Rule 10b5-1, executive compensation, stock ownership
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