Navitas Semiconductor (NASDAQ:NVTS) Stock Price Down 1.2% - Should You Sell?

Key Points

• Navitas Semiconductor shares fell 1.2% on Wednesday, trading as low as $12.29 and below the prior close, with volume coming in well under average.
• Wall Street sentiment is mixed but leans cautious: the stock has a consensus rating of Hold and an average price target of $14.74, even after several firms recently raised targets sharply.
• The company continues to show weak fundamentals, including a year-over-year revenue decline of 38.7% in the latest quarter, while insiders have also been selling shares.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report)'s share price dropped 1.2% on Wednesday . The stock traded as low as $12.29 and last traded at $12.67. 12,744,767 shares were traded during mid-day trading, a decline of 53% from the average session volume of 27,113,213 shares. The stock had previously closed at $12.82.

Analysts Set New Price Targets

NVTS has been the topic of a number of analyst reports. Needham & Company LLC increased their target price on shares of Navitas Semiconductor from $13.00 to $21.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Robert W. Baird lifted their price target on shares of Navitas Semiconductor from $9.00 to $20.00 and gave the company an "outperform" rating in a research report on Monday, May 4th. Morgan Stanley reiterated an "underweight" rating and issued a $13.70 price target on shares of Navitas Semiconductor in a research note on Wednesday, May 6th. Weiss Ratings raised Navitas Semiconductor from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, June 17th. Finally, Wall Street Zen upgraded Navitas Semiconductor from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $14.74.

Navitas Semiconductor Stock Down 1.2%

The stock has a 50 day moving average of $20.58 and a 200 day moving average of $14.10. The firm has a market cap of $2.96 billion, a price-to-earnings ratio of -20.11 and a beta of 3.82.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $8.60 million for the quarter, compared to the consensus estimate of $8.22 million. During the same period in the prior year, the company posted ($0.06) earnings per share. The business's revenue for the quarter was down 38.7% on a year-over-year basis. As a group, analysts predict that Navitas Semiconductor Corporation will post -0.39 EPS for the current fiscal year.

Insider Activity

In other Navitas Semiconductor news, CEO Chris Allexandre sold 13,323 shares of the company's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $31.81, for a total transaction of $423,804.63. Following the completion of the sale, the chief executive officer directly owned 1,072,633 shares in the company, valued at $34,120,455.73. This represents a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ranbir Singh sold 664,058 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $28.72, for a total value of $19,071,745.76. Following the completion of the sale, the director directly owned 14,943,475 shares in the company, valued at approximately $429,176,602. This represents a 4.25% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 3,989,478 shares of company stock worth $116,356,387. Insiders own 12.40% of the company's stock.

Institutional Trading of Navitas Semiconductor

Several institutional investors and hedge funds have recently modified their holdings of NVTS. Invesco Ltd. boosted its stake in Navitas Semiconductor by 257.8% in the fourth quarter. Invesco Ltd. now owns 4,737,624 shares of the company's stock valued at $33,827,000 after buying an additional 3,413,394 shares in the last quarter. Marex Group plc lifted its holdings in shares of Navitas Semiconductor by 22,203.8% in the fourth quarter. Marex Group plc now owns 2,675,113 shares of the company's stock worth $19,100,000 after acquiring an additional 2,663,119 shares during the last quarter. Ghisallo Capital Management LLC bought a new position in shares of Navitas Semiconductor in the fourth quarter worth about $15,867,000. UBS Group AG boosted its stake in shares of Navitas Semiconductor by 131.0% in 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 in the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of Navitas Semiconductor in the 3rd quarter valued at approximately $11,243,000. 46.14% of the stock is currently 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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