Navitas Semiconductor (NASDAQ:NVTS) Trading Down 7.8% - Should You Sell?

Key Points

• Navitas Semiconductor shares fell 7.8% on Wednesday, trading as low as $16.46 before closing near $16.53, with volume below its daily average.
• Analyst sentiment is mixed but slightly cautious: the stock has an average “Hold” rating and a consensus price target of $14.74, even after several firms recently raised targets and ratings.
• The company’s latest quarter showed better-than-expected earnings and revenue, but revenue still fell 38.7% year over year and the business remains unprofitable, while insider selling has been notable in recent weeks.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report)'s stock price was down 7.8% on Wednesday . The stock traded as low as $16.46 and last traded at $16.53. Approximately 15,058,910 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 28,498,412 shares. The stock had previously closed at $17.92.

Analyst Ratings Changes

Several research firms have commented on NVTS. Wall Street Zen upgraded shares of Navitas Semiconductor from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Needham & Company LLC boosted their target price on shares of Navitas Semiconductor from $13.00 to $21.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Robert W. Baird increased their target price on Navitas Semiconductor from $9.00 to $20.00 and gave the company an "outperform" rating in a report on Monday, May 4th. Rosenblatt Securities raised their price target on Navitas Semiconductor from $7.00 to $13.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings raised Navitas Semiconductor from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 17th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $14.74.

Navitas Semiconductor Trading Down 7.8%

The stock has a market cap of $3.86 billion, a PE ratio of -26.24 and a beta of 3.75. The business has a 50 day moving average of $21.70 and a 200-day moving average of $13.49.

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 analysts' consensus estimates of ($0.05) by $0.01. The company had revenue of $8.60 million during the quarter, compared to analysts' expectations of $8.22 million. Navitas Semiconductor had a negative return on equity of 14.30% and a negative net margin of 330.67%.The firm's revenue for the quarter was down 38.7% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.06) earnings per share. Research analysts expect that Navitas Semiconductor Corporation will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling at Navitas Semiconductor

In other Navitas Semiconductor news, Director Richard J. Hendrix sold 110,165 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $28.96, for a total transaction of $3,190,378.40. Following the transaction, the director directly owned 101,709 shares of the company's stock, valued at approximately $2,945,492.64. This trade represents a 52.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Ranbir Singh sold 664,058 shares of Navitas Semiconductor stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $28.72, for a total transaction of $19,071,745.76. Following the completion of the transaction, the director owned 14,943,475 shares in the company, valued at approximately $429,176,602. This represents a 4.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,989,478 shares of company stock worth $116,356,387 in the last quarter. 12.40% of the stock is currently owned by company insiders.

Institutional Trading of Navitas Semiconductor

Several institutional investors and hedge funds have recently added to or reduced their stakes in NVTS. Allworth Financial LP grew its stake in shares of Navitas Semiconductor by 309.4% in the 3rd quarter. Allworth Financial LP now owns 3,570 shares of the company's stock valued at $26,000 after purchasing an additional 2,698 shares during the last quarter. NewEdge Advisors LLC grew 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 buying an additional 2,942 shares during the last quarter. GAMMA Investing LLC grew its position in Navitas Semiconductor by 116.5% in the 4th quarter. GAMMA Investing LLC now owns 4,736 shares of the company's stock valued at $34,000 after buying an additional 2,548 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in Navitas Semiconductor by 3,200.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 4,125 shares of the company's stock valued at $36,000 after buying an additional 4,000 shares during the period. Finally, State of Wyoming increased its stake in Navitas Semiconductor by 92.8% in the 1st quarter. State of Wyoming now owns 4,803 shares of the company's stock valued at $42,000 after buying an additional 2,312 shares during the period. 46.14% of the stock is owned by hedge funds and other 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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