Navitas Semiconductor (NASDAQ:NVTS) Trading Down 4.2% on Analyst Downgrade

Key Points

• Navitas Semiconductor's stock dropped 4.2% after being downgraded by CJS Securities from an outperform to market perform rating, with a current trading price around $6.49.
• Analysts have mixed views on the company, with three assigning a Buy rating, three a Hold rating, and one a Sell rating, reflecting a consensus price target of $5.65.
• Insider trading activity includes significant sales and purchases, indicating mixed sentiment among directors; notably, one director sold 20,000 shares while another acquired over 18 million shares recently.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) shares traded down 4.2% on Tuesday after CJS Securities downgraded the stock from an outperform rating to a market perform rating. The company traded as low as $6.51 and last traded at $6.49. 3,406,884 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 21,940,541 shares. The stock had previously closed at $6.77.

A number of other brokerages have also commented on NVTS. Craig Hallum lowered shares of Navitas Semiconductor from a "buy" rating to a "hold" rating and set a $6.00 price objective for the company. in a research report on Tuesday, August 5th. Morgan Stanley set a $4.40 price objective on shares of Navitas Semiconductor in a research report on Tuesday, August 5th. Needham & Company LLC increased their price objective on shares of Navitas Semiconductor from $3.00 to $8.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Deutsche Bank Aktiengesellschaft lowered 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. Finally, Rosenblatt Securities cut their price objective on shares of Navitas Semiconductor from $10.00 to $8.00 and set a "buy" rating for the company in a research report on Tuesday, August 5th. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Navitas Semiconductor has a consensus rating of "Hold" and a consensus price target of $5.65.

Insider Buying and Selling at Navitas Semiconductor

In related news, Director Richard J. Hendrix sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $8.12, for a total transaction of $162,400.00. Following the transaction, the director owned 45,456 shares in the company, valued at $369,102.72. This trade represents a 30.55% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Ranbir Singh purchased 18,645,603 shares of Navitas Semiconductor stock in a transaction dated Monday, July 28th. The stock was acquired at an average cost of $8.79 per share, with a total value of $163,894,850.37. Following the completion of the acquisition, the director directly owned 18,645,603 shares in the company, valued at approximately $163,894,850.37. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have sold 15,009,600 shares of company stock valued at $99,605,157. Insiders own 29.90% of the company's stock.

Institutional Investors Weigh In On Navitas Semiconductor

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of Navitas Semiconductor by 1.3% during the 1st quarter. Vanguard Group Inc. now owns 9,997,486 shares of the company's stock valued at $20,495,000 after purchasing an additional 123,598 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Navitas Semiconductor by 3.9% in the 2nd quarter. Geode Capital Management LLC now owns 3,340,193 shares of the company's stock worth $21,882,000 after acquiring an additional 124,594 shares in the last quarter. Invesco Ltd. lifted its stake in shares of Navitas Semiconductor by 75.2% in the 2nd quarter. Invesco Ltd. now owns 3,206,008 shares of the company's stock valued at $20,999,000 after purchasing an additional 1,376,205 shares during the period. BNP Paribas Financial Markets increased its position in shares of Navitas Semiconductor by 1,332.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,604,538 shares of the company's stock valued at $10,510,000 after buying an additional 1,492,512 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in Navitas Semiconductor by 1,742.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,428,386 shares of the company's stock worth $9,356,000 after purchasing an additional 1,350,857 shares in the last quarter. Hedge funds and other institutional investors own 46.14% of the company's stock.

Navitas Semiconductor Price Performance

The company's 50-day simple moving average is $7.07 and its 200-day simple moving average is $4.27. The stock has a market capitalization of $1.38 billion, a price-to-earnings ratio of -9.99 and a beta of 3.02.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last released its earnings results on Monday, August 4th. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.05). The business had revenue of $14.49 million for the quarter, compared to analyst estimates of $14.43 million. Navitas Semiconductor had a negative net margin of 182.63% and a negative return on equity of 18.16%. Navitas Semiconductor's revenue for the quarter was down 29.2% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.07) earnings per share. Navitas Semiconductor has set its Q3 2025 guidance at EPS. Research analysts expect that Navitas Semiconductor Corporation will post -0.51 earnings per share 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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