Navitas Semiconductor (NASDAQ:NVTS) Shares Gap Down Following Analyst Downgrade

Key Points

• Navitas Semiconductor's shares opened at $6.28 after a downgrade from Rosenblatt Securities, reducing their price target from $10.00 to $8.00.
• Multiple analysts have recently downgraded the stock, including Needham and Morgan Stanley, with a consensus price target of $5.17.
• Insider sales were significant, with CEO Eugene Sheridan and Director Brian Long selling over 5 million shares combined in recent months.

Shares of Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) gapped down prior to trading on Tuesday after Rosenblatt Securities lowered their price target on the stock from $10.00 to $8.00. The stock had previously closed at $8.05, but opened at $6.28. Rosenblatt Securities currently has a buy rating on the stock. Navitas Semiconductor shares last traded at $7.15, with a volume of 15,484,466 shares.

Several other research analysts have also weighed in on NVTS. Morgan Stanley lowered Navitas Semiconductor from an "equal weight" rating to an "underweight" rating and dropped their price target for the company from $2.10 to $1.50 in a research report on Monday, April 7th. Craig Hallum downgraded Navitas Semiconductor from a "buy" rating to a "hold" rating and set a $6.00 price target on the stock. in a research report on Tuesday. Needham & Company LLC dropped their price objective on Navitas Semiconductor from $4.00 to $3.00 and set a "buy" rating on the stock in a research note on Tuesday, May 6th. Finally, Deutsche Bank Aktiengesellschaft downgraded 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 note on Tuesday, June 17th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $5.65.

Insider Activity

In other news, CFO Todd Glickman sold 100,000 shares of the stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $8.00, for a total transaction of $800,000.00. Following the completion of the sale, the chief financial officer owned 134,501 shares of the company's stock, valued at $1,076,008. This represents a 42.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Eugene Sheridan sold 238,668 shares of the company's stock in a transaction on Friday, June 13th. The stock was sold at an average price of $7.50, for a total transaction of $1,790,010.00. Following the completion of the transaction, the chief executive officer directly owned 461,332 shares of the company's stock, valued at approximately $3,459,990. The trade was a 34.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,084,600 shares of company stock worth $99,761,157. Corporate insiders own 29.90% of the company's stock.

Institutional Trading of Navitas Semiconductor

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Raymond James Financial Inc. bought a new position in Navitas Semiconductor during the fourth quarter worth about $44,000. American Century Companies Inc. increased its holdings in shares of Navitas Semiconductor by 52.7% during the fourth quarter. American Century Companies Inc. now owns 15,704 shares of the company's stock worth $56,000 after purchasing an additional 5,419 shares during the period. KLP Kapitalforvaltning AS acquired a new stake in shares of Navitas Semiconductor in the fourth quarter valued at approximately $68,000. Vanguard Group Inc. boosted its stake in shares of Navitas Semiconductor by 1.7% in the fourth quarter. Vanguard Group Inc. now owns 9,873,888 shares of the company's stock valued at $35,250,000 after buying an additional 166,115 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Navitas Semiconductor by 3.8% in the fourth quarter. Geode Capital Management LLC now owns 3,081,916 shares of the company's stock valued at $11,005,000 after buying an additional 113,277 shares during the period. 46.14% of the stock is owned by institutional investors.

Navitas Semiconductor Price Performance

The stock has a 50-day moving average of $6.96 and a 200-day moving average of $4.07. The firm has a market cap of $1.28 billion, a price-to-earnings ratio of -10.25 and a beta of 3.02.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last issued its 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 firm had revenue of $14.49 million for the quarter, compared to the consensus estimate of $14.43 million. Navitas Semiconductor had a negative return on equity of 18.16% and a negative net margin of 182.63%. The company's revenue was down 29.2% compared to the same quarter last year. During the same quarter last year, the business posted ($0.07) EPS. On average, equities analysts expect that Navitas Semiconductor Corporation will post -0.51 EPS for the current fiscal 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.