We have digested and published plenty on this name but one major thing is missing.
Insider stock behavior that is consistent with the rhetoric.
Insiders have been big sellers and the most outspoken of them all, the CEO, has been selling millions of dollars regularly as part of his plan.
At $20 or $30 this made sense but it continues down here at these levels.Â We did a scan of the insider transactions and it was way back in 2004 when insiders bought last time.
Their timing was very good as the shares went up sharply from there.
If the insiders are saying that we are at inflection point in this huge industry and Nvidia is in the leadership position why would we not see some insider accumulation of stock?
As anyone can see from our recent post summarizing their analyst meeting yesterday they are still in a transition mode and the real momentum in their business is still two or three quarters away (eons in current Wall Street thinking) and investors will wait to see if the company can deliver the goods.
If that’s true one would expect insider buying now since most would want a one year holding period for a variety of reasons, taxes not being the least of them.
We still own some Nvidia shares here but seeing insiders still selling stock here doesn’t make us feel eager to add any more at these levels.