Navitas Semiconductor (NASDAQ:NVTS) Shares Down 4.5% - Here's Why

Key Points

• Navitas Semiconductor shares fell 4.5% in midday trading, dropping to as low as $12.58 after closing at $13.47 the previous day. Volume was lighter than usual, with about 12.0 million shares traded versus a 27.9 million average.
• Analyst sentiment is mixed but leaning cautious: the stock currently has a consensus Hold rating and an average price target of $14.74. Recent updates included a Needham upgrade to a $21 target and buy rating, while Morgan Stanley kept an underweight stance with a $13.70 target.
• The company remains unprofitable despite beating quarterly EPS expectations, reporting a loss of $0.04 per share versus estimates for a $0.05 loss and revenue of $8.6 million. Navitas also saw notable insider selling, including large disposals by directors, while institutional ownership stands at 46.14%.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report)'s share price was down 4.5% during mid-day trading on Monday . The company traded as low as $12.58 and last traded at $12.87. Approximately 12,030,557 shares changed hands during trading, a decline of 57% from the average session volume of 27,870,139 shares. The stock had previously closed at $13.47.

Analysts Set New Price Targets

Several research firms have recently commented on NVTS. Weiss Ratings raised shares of Navitas Semiconductor from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, June 17th. Needham & Company LLC increased their price target on shares of Navitas Semiconductor from $13.00 to $21.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Rosenblatt Securities raised 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. Morgan Stanley restated an "underweight" rating and issued a $13.70 price objective on shares of Navitas Semiconductor in a report on Wednesday, May 6th. Finally, Wall Street Zen upgraded Navitas Semiconductor from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $14.74.

Navitas Semiconductor Trading Down 4.5%

The stock has a market cap of $3.01 billion, a P/E ratio of -20.43 and a beta of 3.82. The stock's fifty day moving average price is $21.38 and its 200 day moving average price is $13.85.

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

Insider Buying and Selling at Navitas Semiconductor

In other news, Director Ranbir Singh sold 3,060,118 shares of Navitas Semiconductor stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $29.29, for a total transaction of $89,630,856.22. Following the completion of the transaction, the director directly owned 15,607,533 shares in the company, valued at approximately $457,144,641.57. This trade represents a 16.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gary Kent Wunderlich, Jr. sold 73,000 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $28.11, for a total value of $2,052,030.00. Following the completion of the sale, the director directly owned 13,964 shares in the company, valued at approximately $392,528.04. This represents a 83.94% decrease in their ownership of the stock. 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 over the last three months. Company insiders own 12.40% of the company's stock.

Institutional Investors Weigh In On Navitas Semiconductor

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

Navitas Semiconductor Company Profile

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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