Navitas Semiconductor (NASDAQ:NVTS) Trading Down 16% Following Analyst Downgrade

Key Points

• Navitas Semiconductor's shares dropped 16% after Rosenblatt Securities downgraded the stock and lowered their price target from $10.00 to $8.00.
• Several analysts have issued downgrades, with Craig Hallum setting a new target of $6.00 and Needham reducing their target from $4.00 to $3.00.
• The company's quarterly revenue of $14.49 million showed a 29.2% decline year-over-year, alongside an EPS of ($0.05), meeting analyst expectations.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report)'s share price traded down 16% during mid-day trading on Tuesday after Rosenblatt Securities lowered their price target on the stock from $10.00 to $8.00. Rosenblatt Securities currently has a buy rating on the stock. Navitas Semiconductor traded as low as $6.24 and last traded at $6.77. 33,673,000 shares traded hands during trading, an increase of 52% from the average session volume of 22,152,824 shares. The stock had previously closed at $8.05.

NVTS has been the topic of a number of other research reports. Needham & Company LLC lowered their price target on Navitas Semiconductor from $4.00 to $3.00 and set a "buy" rating on the stock in a report on Tuesday, May 6th. Craig Hallum downgraded Navitas Semiconductor from a "buy" rating to a "hold" rating and set a $6.00 target price on the stock. in a research note on Tuesday. Morgan Stanley lowered Navitas Semiconductor from an "equal weight" rating to an "underweight" rating and dropped their target price for the company from $2.10 to $1.50 in a report on Monday, April 7th. Finally, Deutsche Bank Aktiengesellschaft lowered shares of Navitas Semiconductor from a "buy" rating to a "hold" rating and set a $3.50 price objective on the stock. in a research report on Tuesday, June 17th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company's stock. According to MarketBeat.com, Navitas Semiconductor presently has a consensus rating of "Hold" and an average price target of $5.65.

Insider Activity at Navitas Semiconductor

In related news, Director Brian Long sold 2,955,509 shares of Navitas Semiconductor stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $6.61, for a total value of $19,535,914.49. Following the sale, the director directly owned 5,920,991 shares in the company, valued at $39,137,750.51. The trade was a 33.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Eugene Sheridan sold 2,155,783 shares of the company's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $4.49, for a total value of $9,679,465.67. The disclosure for this sale can be found here. Insiders have sold a total of 15,084,600 shares of company stock worth $99,761,157 in the last three months. 29.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Navitas Semiconductor

A number of large investors have recently made changes to their positions in the stock. Raymond James Financial Inc. purchased a new stake in Navitas Semiconductor during the fourth quarter worth about $44,000. American Century Companies Inc. lifted its position in shares of Navitas Semiconductor by 52.7% during the 4th quarter. American Century Companies Inc. now owns 15,704 shares of the company's stock valued at $56,000 after acquiring an additional 5,419 shares during the period. KLP Kapitalforvaltning AS purchased a new stake in shares of Navitas Semiconductor during the 4th quarter worth approximately $68,000. Vanguard Group Inc. boosted its stake in shares of Navitas Semiconductor by 1.7% during the 4th quarter. Vanguard Group Inc. now owns 9,873,888 shares of the company's stock worth $35,250,000 after acquiring an additional 166,115 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Navitas Semiconductor by 3.8% in the 4th quarter. Geode Capital Management LLC now owns 3,081,916 shares of the company's stock worth $11,005,000 after acquiring an additional 113,277 shares during the period. Hedge funds and other institutional investors own 46.14% of the company's stock.

Navitas Semiconductor Trading Down 2.4%

The firm has a 50 day moving average of $6.96 and a two-hundred day moving average of $4.07. The stock has a market capitalization of $1.27 billion, a PE ratio of -10.21 and a beta of 3.02.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last announced its quarterly earnings results on Monday, August 4th. The company reported ($0.05) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.05). The business had revenue of $14.49 million during the quarter, compared to analysts' expectations of $14.43 million. Navitas Semiconductor had a negative return on equity of 18.16% and a negative net margin of 182.63%. The business's revenue for the quarter was down 29.2% on a year-over-year basis. During the same quarter last year, the business posted ($0.07) earnings per share. Equities research analysts forecast that Navitas Semiconductor Corporation will post -0.51 EPS for the current year.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company's products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications.