Navitas Semiconductor (NASDAQ:NVTS) Trading Down 5% - Should You Sell?

Key Points

• Navitas Semiconductor shares fell 5% on Friday, trading as low as $13.17 before closing at $13.47, with volume well below average.
• Wall Street sentiment is mixed but cautious: the stock carries a consensus Hold rating and a $14.74 target price, while several firms have recently cut or raised targets and one major analyst kept an underweight rating.
• The company beat quarterly EPS and revenue estimates, but fundamentals remain weak with a large year-over-year revenue decline, negative margins, and insider selling that has totaled millions of shares in recent months.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) shares were down 5% during trading on Friday . The company traded as low as $13.17 and last traded at $13.47. 11,047,145 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 28,004,088 shares. The stock had previously closed at $14.18.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Morgan Stanley restated an "underweight" rating and set a $13.70 price objective on shares of Navitas Semiconductor in a research note on Wednesday, May 6th. Rosenblatt Securities lifted their price target on Navitas Semiconductor from $7.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Weiss Ratings upgraded Navitas Semiconductor from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 17th. Robert W. Baird upped their price objective on Navitas Semiconductor from $9.00 to $20.00 and gave the company an "outperform" rating in a research note on Monday, May 4th. Finally, Needham & Company LLC upped their price objective on Navitas Semiconductor from $13.00 to $21.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $14.74.

Navitas Semiconductor Stock Down 5.0%

The stock has a market capitalization of $3.15 billion, a price-to-earnings ratio of -21.38 and a beta of 3.82. The company's fifty day simple moving average is $21.42 and its 200 day simple moving average is $13.81.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.01. The company had revenue of $8.60 million for the quarter, compared to analyst estimates of $8.22 million. Navitas Semiconductor had a negative net margin of 330.67% and a negative return on equity of 14.30%. The company's revenue was down 38.7% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.06) earnings per share. As a group, analysts anticipate that Navitas Semiconductor Corporation will post -0.39 earnings per share for the current year.

Insider Activity at Navitas Semiconductor

In other news, Director Richard J. Hendrix sold 110,165 shares of the business'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 sale, the director owned 101,709 shares in the company, valued at $2,945,492.64. The trade was a 52.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Chris Allexandre sold 13,323 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $31.81, for a total value of $423,804.63. Following the completion of the transaction, the chief executive officer directly owned 1,072,633 shares in the company, valued at $34,120,455.73. The trade was a 1.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 3,989,478 shares of company stock valued at $116,356,387 in the last 90 days. Insiders own 12.40% of the company's stock.

Institutional Trading of Navitas Semiconductor

Several institutional investors have recently added to or reduced their stakes in the company. DNB Asset Management AS bought a new stake in Navitas Semiconductor during the 4th quarter worth approximately $774,000. UBS Group AG raised its stake in shares of Navitas Semiconductor by 131.0% during the fourth quarter. UBS Group AG now owns 3,307,036 shares of the company's stock valued at $23,612,000 after acquiring an additional 1,875,228 shares during the last quarter. Diversify Advisory Services LLC bought a new position in shares of Navitas Semiconductor during the third quarter valued at $960,000. Newbridge Financial Services Group Inc. lifted its holdings in shares of Navitas Semiconductor by 1,425.5% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 132,874 shares of the company's stock worth $949,000 after purchasing an additional 124,164 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Navitas Semiconductor during the fourth quarter worth $484,000. 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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