Nvidia Stock Made This Insider A Billionaire — Here's How Much He Just Sold

A Nvidia Corporation NVDA board member is cashing in after the recent all-time highs reached by the semiconductor company. Here are the details.

What Happened: Shares of Nvidia have surged since the company reported first-quarter financial results May 24. On Tuesday, shares of the company were trading higher and Nvidia became the newest member of the $1-trillion market capitalization club.

A member of the Nvidia board — and one of the largest individual shareholders of the company — recently filed to sell shares of the company after Nvidia soared on the strength of earnings and guidance, and just before the $1-trillion market cap was reached.

Nvidia reported first-quarter financial results that came in ahead of Street estimates for both revenue and earnings per share. The company also guided for second-quarter revenue to hit close to $11 billion, significantly higher than the $7.15 billion expected from analysts.

Shares of Nvidia closed at $305.38 on Wednesday prior to the earnings report before trading over $385 at the open Thursday. 

On May 26, Nvidia board member Tench Coxe announced the proposed sale of 100,000 shares in a Rule 144 filing, which is done for public resale of restricted and control securities.

The 100,000 shares were sold for proceeds of $37.9 million.

The most interesting part of the trade may not have been the sale date, but rather the purchase date. According to the filing, Coxe bought the shares in a cash purchase on July 8, 1997.

This means the shares were bought prior to Nvidia’s IPO, which occurred in January 1999.

There was no cost basis listed in the filing. Shares of Nvidia sold for $12 each in 1999 at the IPO price, and after several stock splits now have an adjusted cost basis of around 40 cents each at the time of the 1999 IPO.

The filing by Coxe also shows sales of 50,000 shares each on March 10, 2023 and March 14, 2023 for proceeds of $11.47 million and $11.97 million, respectively.

Coxe has served on the board since 1993, the same year the company was founded. Coxe is the former managing director of Sutter Hill Ventures.

Related Link: If You Invested $1,000 In Nvidia Stock When Jim Cramer Named His Dog After The Company, Here's How Much You'd Have Today 

What’s Next: The 100,000-share sale by Coxe could have been done for a number of reasons, and despite the large sale amount of $37.9 million, the board member still owns a sizable stake in the company.

Coxe owns around 4,282,384 shares of Nvidia stock, according to UnusualWhales. Coxe is listed as the third largest individual shareholder of Nvidia, trailing only founder and CEO Jensen Huang and fellow board member Mark Stevens.

Analysts have raised their price targets on Nvidia shares in the aftermath of the chipmaker's first-quarter results and second-quarter guidance.

While Coxe may have missed some potential profits selling Nvidia shares in March and May, the board member will continue have a financial stake in the company’s future.

Coxe is worth an estimated $2.4 billion, according to Forbes.

NVDA Price Action: Nvidia shares are up 3% to $401.64 on Tuesday versus a 52-week trading range of $108.13 to $419.38, a new high hit earlier in the trading day.

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Photo courtesy of Nvidia.