Navitas Semiconductor (NASDAQ:NVTS) Shares Down 11.4% - Time to Sell?

Key Points

• Navitas Semiconductor shares fell 11.4% on Thursday, trading as low as $11.57 after closing at $13.27, on lighter-than-usual volume.
• Wall Street sentiment remains mixed: analysts have an average Hold rating with a $14.74 target price, though several firms recently raised targets, including Baird to $20 and Needham to $21.
• The company’s latest results showed improving earnings versus estimates but still weak fundamentals, with revenue down 38.7% year over year and expectations for a full-year loss of $0.39 per share.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) shares traded down 11.4% during trading on Thursday . The company traded as low as $11.57 and last traded at $11.76. Approximately 14,923,298 shares changed hands during trading, a decline of 46% from the average session volume of 27,550,977 shares. The stock had previously closed at $13.27.

Analysts Set New Price Targets

Several brokerages have recently commented on NVTS. Robert W. Baird increased their price objective on Navitas Semiconductor from $9.00 to $20.00 and gave the stock an "outperform" rating in a research note on Monday, May 4th. Weiss Ratings upgraded Navitas Semiconductor from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 17th. Morgan Stanley reissued an "underweight" rating and issued a $13.70 price target on shares of Navitas Semiconductor in a research report on Wednesday, May 6th. Rosenblatt Securities lifted their price objective on shares of Navitas Semiconductor from $7.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Finally, Needham & Company LLC lifted their price objective on shares of Navitas Semiconductor from $13.00 to $21.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $14.74.

Navitas Semiconductor Stock Performance

The company's 50 day simple moving average is $21.15 and its 200 day simple moving average is $13.97. The stock has a market cap of $2.75 billion, a PE ratio of -18.67 and a beta of 3.82.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported ($0.04) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.01. The firm had revenue of $8.60 million for the quarter, compared to the consensus estimate of $8.22 million. Navitas Semiconductor had a negative return on equity of 14.30% and a negative net margin of 330.67%.The company's revenue was down 38.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.06) EPS. Equities research analysts expect that Navitas Semiconductor Corporation will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In other Navitas Semiconductor news, CEO Chris Allexandre sold 13,323 shares of the business's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $31.81, for a total value of $423,804.63. Following the transaction, the chief executive officer owned 1,072,633 shares of the company's stock, valued at approximately $34,120,455.73. The trade was a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Gary Kent Wunderlich, Jr. sold 73,000 shares of the company's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $28.11, for a total value of $2,052,030.00. Following the completion of the transaction, the director owned 13,964 shares of the company's stock, valued at $392,528.04. This trade represents a 83.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 3,989,478 shares of company stock worth $116,356,387 in the last ninety days. Company insiders own 12.40% of the company's stock.

Hedge Funds Weigh In On Navitas Semiconductor

Several institutional investors have recently added to or reduced their stakes in NVTS. DNB Asset Management AS bought a new position in shares of Navitas Semiconductor during the 4th quarter valued at approximately $774,000. UBS Group AG raised its holdings in shares of Navitas Semiconductor by 131.0% in the 4th quarter. UBS Group AG now owns 3,307,036 shares of the company's stock worth $23,612,000 after purchasing an additional 1,875,228 shares during the period. Newbridge Financial Services Group Inc. raised its holdings in shares of Navitas Semiconductor by 1,425.5% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 132,874 shares of the company's stock worth $949,000 after purchasing an additional 124,164 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Navitas Semiconductor in the fourth quarter valued at approximately $484,000. Finally, Integrity Alliance LLC. purchased a new position in Navitas Semiconductor in the fourth quarter valued at approximately $280,000. Institutional investors own 46.14% of the company's stock.

About Navitas Semiconductor

Navitas Semiconductor is a fabless semiconductor company specialized in gallium nitride (GaN) power integrated circuits. The company’s core mission centers on delivering high-efficiency, high-power-density power solutions that address the needs of modern electronic devices, ranging from fast chargers for consumer electronics to industrial and automotive power systems.

Navitas offers a portfolio of GaNFast power ICs designed to replace traditional silicon-based power components. These products integrate GaN transistors, drivers and protection features into single-chip solutions, enabling faster charging, reduced energy loss and smaller power supply footprints.

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