Navitas Semiconductor (NASDAQ:NVTS) Shares Gap Up - Still a Buy?

Key Points

• Shares were volatile intraday — the stock gapped up to open at $10.83 (prior close $10.43) but last traded near $9.81 on heavy volume and was reported down about 9.7%.
• Analysts are mixed (2 Buy, 5 Hold, 2 Sell) with a MarketBeat consensus rating of Hold and a consensus price target of $6.48, though some firms (e.g., Needham) have higher targets.
• Fundamentals remain weak: quarterly revenue fell 53.4% YoY to $10.11M with EPS of -$0.05 and a negative net margin of 220.85%; meanwhile insiders have sold roughly 3.43 million shares (~$29.4M) in recent months.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $10.43, but opened at $10.83. Navitas Semiconductor shares last traded at $9.8050, with a volume of 9,388,030 shares changing hands.

Analysts Set New Price Targets

A number of analysts have recently weighed in on NVTS shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Navitas Semiconductor in a research note on Wednesday, October 8th. Jefferies Financial Group upgraded Navitas Semiconductor to a "hold" rating in a research report on Tuesday, October 28th. Rosenblatt Securities restated a "neutral" rating and set a $8.00 price objective on shares of Navitas Semiconductor in a research report on Monday, November 10th. Finally, Needham & Company LLC lifted their price objective on shares of Navitas Semiconductor from $8.00 to $13.00 and gave the stock a "buy" rating in a research note on Tuesday, November 4th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Navitas Semiconductor presently has a consensus rating of "Hold" and a consensus price target of $6.48.

Navitas Semiconductor Stock Down 9.7%

The business's 50 day simple moving average is $8.48 and its 200 day simple moving average is $8.18. The company has a market capitalization of $2.17 billion, a PE ratio of -14.70 and a beta of 3.16.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last released its quarterly earnings results on Monday, November 3rd. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.05). Navitas Semiconductor had a negative net margin of 220.85% and a negative return on equity of 14.86%. The business had revenue of $10.11 million for the quarter, compared to analyst estimates of $10.00 million. During the same quarter in the previous year, the business earned ($0.10) earnings per share. The firm's revenue was down 53.4% compared to the same quarter last year. On average, analysts anticipate that Navitas Semiconductor Corporation will post -0.51 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Gary Kent Wunderlich, Jr. sold 49,651 shares of the stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $9.31, for a total value of $462,250.81. Following the completion of the sale, the director directly owned 86,964 shares of the company's stock, valued at approximately $809,634.84. This represents a 36.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Todd Glickman sold 78,307 shares of Navitas Semiconductor stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $9.77, for a total value of $765,059.39. Following the transaction, the chief financial officer directly owned 813,279 shares in the company, valued at approximately $7,945,735.83. This trade represents a 8.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 3,426,898 shares of company stock valued at $29,360,063. 29.90% of the stock is currently owned by company insiders.

Institutional Trading of Navitas Semiconductor

Several institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in Navitas Semiconductor by 23.6% during the third quarter. Vanguard Group Inc. now owns 13,360,648 shares of the company's stock valued at $96,464,000 after purchasing an additional 2,550,613 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Navitas Semiconductor by 3.9% during the 2nd quarter. Geode Capital Management LLC now owns 3,340,193 shares of the company's stock valued at $21,882,000 after buying an additional 124,594 shares during the period. Invesco Ltd. grew its holdings in shares of Navitas Semiconductor by 75.2% during the 2nd quarter. Invesco Ltd. now owns 3,206,008 shares of the company's stock valued at $20,999,000 after acquiring an additional 1,376,205 shares in the last quarter. BNP Paribas Financial Markets increased its stake in shares of Navitas Semiconductor by 90.0% in the third quarter. BNP Paribas Financial Markets now owns 3,048,943 shares of the company's stock worth $22,013,000 after acquiring an additional 1,444,405 shares during the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of Navitas Semiconductor during the third quarter worth $11,243,000. 46.14% of the stock is currently owned by institutional investors and hedge funds.

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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