"Insider sales might look like a red flag at first glance. In reality, they trace back to how tech compensation works. Executives receive most of their pay in restricted stock units and options that vest after performance targets are met."
"Nvidia's fiscal 2026 fourth-quarter results delivered revenue of $68.1 billion, up 73% year over year, with data-center revenue at $62.3 billion, up 75%. Full-year revenue reached $215.9 billion, up 65%."
Since 2009, tech stocks like Nvidia and Tesla have seen massive returns, yet insiders sold $16.32 billion more shares than they bought. Only Tesla had net buying, primarily from Elon Musk. Insider sales often stem from compensation structures, where executives sell shares to cover taxes and reduce risk. Despite these sales, companies like Nvidia and Apple continue to show strong revenue growth, indicating that fundamentals remain solid even as insiders cash out.
Read at 24/7 Wall St.
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