Executives and directors at Nvidia Corp. (NASDAQ:NVDA), the top performer in the S&P 500, have recently sold or disclosed their intention to sell around 370,000 shares worth approximately $180 million, making it the largest monthly disposal by dollar value in at least six years. After experiencing a remarkable 220% rally in 2023, Nvidia’s shares have faced a slight dip, dropping over 6% since November 21. This decline followed the company’s forecast for current-quarter revenue, which surpassed the average analyst estimate by about $2 billion due to high demand for artificial intelligence computing chips.

While it’s reasonable for insiders to capitalize on gains after such a strong performance, the absence of stock purchases by Nvidia insiders since 2020 raises questions about their confidence in a future rally. Shana Sissel, CEO of Banrion Capital Management, which holds Nvidia shares, noted the significance of the sell-off but also acknowledged the logic behind monetizing compensation gains given the stock’s performance.

A representative for Nvidia stated that the majority of the sales are based on 10b5-1 plans, where the price, amount, and dates of the sales are predetermined. Among the insiders disclosing sales or intent to sell in November were Mark Stevens, a director at Nvidia since 2008, Debora Shoquist, executive vice president of operations, and Dawn Hudson, who joined Nvidia’s board in July.

In contrast to Nvidia, corporate insiders in the S&P 500 increased their buying of their own shares in November, with the ratio of buyers to sellers set to reach a six-month high, as reported by the Washington Service.

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