Navitas Semiconductor (NASDAQ:NVTS) Trading Down 14.6% - Here's What Happened

Key Points

• Navitas Semiconductor shares fell 14.6% on Wednesday, dropping from a prior close of $21.40 to as low as $17.42 amid heavier-than-normal trading volume.
• Recent analyst activity was mixed, but the overall view remains cautious: the stock carries a consensus Hold rating with a consensus price target of $14.74, while several firms adjusted their targets and ratings in recent reports.
• The company’s latest earnings showed a small beat on EPS and revenue, but fundamentals remain weak, with negative net margin, declining year-over-year revenue, and analysts expecting a full-year EPS loss.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) shares traded down 14.6% on Wednesday . The stock traded as low as $17.42 and last traded at $18.2710. 33,517,262 shares traded hands during mid-day trading, an increase of 16% from the average session volume of 28,896,826 shares. The stock had previously closed at $21.40.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on NVTS. Weiss Ratings upgraded shares of Navitas Semiconductor from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, June 17th. 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. Rosenblatt Securities boosted their price objective on Navitas Semiconductor from $7.00 to $13.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Wall Street Zen upgraded Navitas Semiconductor from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Finally, Robert W. Baird increased their target price on Navitas Semiconductor from $9.00 to $20.00 and gave the stock an "outperform" rating in a report on Monday, May 4th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Navitas Semiconductor currently has a consensus rating of "Hold" and a consensus target price of $14.74.

Navitas Semiconductor Price Performance

The company has a market capitalization of $4.27 billion, a price-to-earnings ratio of -29.00 and a beta of 3.75. The stock's fifty day simple moving average is $21.01 and its two-hundred day simple moving average is $13.19.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($0.04) EPS for the quarter, beating 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 business had revenue of $8.60 million during the quarter, compared to analyst estimates of $8.22 million. During the same period in the previous year, the business posted ($0.06) EPS. The company's quarterly revenue was down 38.7% on a year-over-year basis. On average, sell-side analysts predict that Navitas Semiconductor Corporation will post -0.39 EPS for the current year.

Insider Buying and Selling

In other news, Director Richard J. Hendrix sold 110,165 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $28.96, for a total transaction of $3,190,378.40. Following the completion of the transaction, the director directly owned 101,709 shares of the company's stock, valued at approximately $2,945,492.64. This represents a 52.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gary Kent Wunderlich, Jr. sold 73,000 shares of the 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 sale, the director owned 13,964 shares in the company, valued at $392,528.04. The trade was a 83.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 3,989,478 shares of company stock valued at $116,356,387. 12.40% of the stock is currently owned by insiders.

Institutional Trading of Navitas Semiconductor

Hedge funds have recently bought and sold shares of the company. Allworth Financial LP boosted its position in shares of Navitas Semiconductor by 309.4% during the third quarter. Allworth Financial LP now owns 3,570 shares of the company's stock worth $26,000 after buying an additional 2,698 shares during the period. NewEdge Advisors LLC increased its position in Navitas Semiconductor by 189.8% in the 2nd quarter. NewEdge Advisors LLC now owns 4,492 shares of the company's stock valued at $29,000 after acquiring an additional 2,942 shares during the period. GAMMA Investing LLC raised its stake in Navitas Semiconductor by 116.5% during the 4th quarter. GAMMA Investing LLC now owns 4,736 shares of the company's stock valued at $34,000 after acquiring an additional 2,548 shares in the last quarter. Geneos Wealth Management Inc. raised its stake in Navitas Semiconductor by 3,200.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 4,125 shares of the company's stock valued at $36,000 after acquiring an additional 4,000 shares in the last quarter. Finally, State of Wyoming boosted its position in Navitas Semiconductor by 92.8% during the 1st quarter. State of Wyoming now owns 4,803 shares of the company's stock worth $42,000 after acquiring an additional 2,312 shares during the period. 46.14% of the stock is currently owned by institutional investors.

About Navitas Semiconductor

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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