Navitas Semiconductor (NASDAQ:NVTS) Shares Gap Down After 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.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) shares 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 trading hands.

Several other equities research analysts also recently weighed in on the stock. Needham & Company LLC reduced their target price on shares of Navitas Semiconductor from $4.00 to $3.00 and set a "buy" rating on the stock in a research note on Tuesday, May 6th. Morgan Stanley downgraded shares of Navitas Semiconductor from an "equal weight" rating to an "underweight" rating and reduced their target price for the company from $2.10 to $1.50 in a research note on Monday, April 7th. Craig Hallum downgraded shares of 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. Finally, Deutsche Bank Aktiengesellschaft downgraded shares of Navitas Semiconductor from a "buy" rating to a "hold" rating and set a $3.50 target price on the stock. in a research note on Tuesday, June 17th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat.com, Navitas Semiconductor has an average rating of "Hold" and a consensus price target of $5.17.

Insider Transactions at Navitas Semiconductor

In other news, CEO Eugene Sheridan sold 2,155,783 shares of the company's stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $4.49, for a total value of $9,679,465.67. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Brian Long sold 2,955,509 shares of the company's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $6.61, for a total transaction of $19,535,914.49. Following the completion of the transaction, the director owned 5,920,991 shares in the company, valued at approximately $39,137,750.51. The trade was a 33.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 15,084,600 shares of company stock valued at $99,761,157. Company insiders own 29.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NVTS. Bank of America Corp DE grew its holdings in Navitas Semiconductor by 180.5% during the 4th quarter. Bank of America Corp DE now owns 1,234,375 shares of the company's stock worth $4,407,000 after acquiring an additional 794,371 shares in the last quarter. Invesco Ltd. grew its holdings in Navitas Semiconductor by 22.2% during the 1st quarter. Invesco Ltd. now owns 1,829,803 shares of the company's stock worth $3,751,000 after acquiring an additional 331,832 shares in the last quarter. Nuveen LLC bought a new position in Navitas Semiconductor during the 1st quarter worth about $675,000. Susquehanna Fundamental Investments LLC bought a new position in Navitas Semiconductor during the 4th quarter worth about $1,170,000. Finally, SCS Capital Management LLC bought a new position in Navitas Semiconductor during the 1st quarter worth about $567,000. 46.14% of the stock is currently owned by institutional investors.

Navitas Semiconductor Stock Performance

The company's fifty day simple moving average is $6.92 and its 200-day simple moving average is $4.01. The company has a market capitalization of $1.34 billion, a P/E ratio of -13.45 and a beta of 3.02.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last released 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). Navitas Semiconductor had a negative net margin of 131.83% and a negative return on equity of 22.62%. The business had revenue of $14.49 million for the quarter, compared to analysts' expectations of $14.43 million. During the same period last year, the business earned ($0.07) EPS. The company's revenue was down 29.2% compared to the same quarter last year. On average, sell-side analysts predict 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.

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