Navitas Semiconductor (NASDAQ:NVTS) Shares Gap Up - Still a Buy?

Key Points

• Navitas shares gapped higher, opening at $12.81 versus a prior close of $11.73, after the company was selected for the U.S. Army’s ALATTIS program to develop 10 kV silicon-carbide power semiconductor technology.
• The Army contract could strengthen Navitas’ credibility and create long-term defense and high-voltage power opportunities, but the company remains unprofitable and revenue declined 27.3% year over year in its latest quarter.
• Analyst sentiment remains mixed: Rosenblatt maintained a Neutral rating with a $13 target, while the broader consensus is Hold with a $15.92 price target. Institutional investors own about 46.1% of the stock.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) shares gapped up prior to trading on Tuesday. The stock had previously closed at $11.73, but opened at $12.81. Navitas Semiconductor shares last traded at $11.8890, with a volume of 13,146,115 shares traded.

Trending Headlines about Navitas Semiconductor

Here are the key news stories impacting Navitas Semiconductor this week:

• Positive Sentiment: Navitas was selected for the U.S. Army’s ALATTIS (Accelerated, Large-Area, 10 kV SiC IGBT) program, under which it will develop advanced 10 kV SiC power semiconductor technology. The award strengthens Navitas’ credibility in high-voltage power devices and could create longer-term opportunities in defense and other demanding power applications. U.S. Government Selects Navitas to Develop Next-Generation 10 kV SiC Power Semiconductors
• Positive Sentiment: Investors appear to view the Army selection as a meaningful validation of Navitas’ SiC technology, with reports highlighting a sharp after-hours reaction and continued interest in the stock. The announcement may improve sentiment despite the company’s still-unprofitable operations and declining year-over-year revenue. Navitas Stock Extends Gains After Army Selects It for SiC Power Chip Development
• Neutral Sentiment: Rosenblatt Securities reaffirmed its Neutral rating and set a $13.00 price target, implying roughly 9.7% upside from the recently cited $11.85 share price. The target suggests some additional potential, but the unchanged rating indicates analysts are not yet convinced that the government program materially changes Navitas’ risk-reward profile.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Rosenblatt Securities reiterated a "neutral" rating and set a $13.00 price objective on shares of Navitas Semiconductor in a research report on Tuesday. Jefferies Financial Group set a $13.00 target price on shares of Navitas Semiconductor in a report on Tuesday, July 28th. Morgan Stanley restated an "underweight" rating and set a $12.60 target price on shares of Navitas Semiconductor in a research report on Tuesday, July 28th. Needham & Company LLC restated a "buy" rating and set a $21.00 target price on shares of Navitas Semiconductor in a research report on Tuesday, July 28th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Navitas Semiconductor in a report on Monday, September 14th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $15.92.

Navitas Semiconductor Trading Up 1.3%

The company has a market capitalization of $3.10 billion, a PE ratio of -8.89 and a beta of 3.88. The firm's 50-day simple moving average is $12.06 and its 200-day simple moving average is $15.10.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last issued its earnings results on Monday, July 27th. The company reported ($0.04) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.04). Navitas Semiconductor had a negative return on equity of 13.13% and a negative net margin of 856.85%.The business had revenue of $10.53 million during the quarter, compared to analyst estimates of $9.97 million. During the same period in the previous year, the company posted ($0.25) EPS. Navitas Semiconductor's revenue was down 27.3% on a year-over-year basis. As a group, analysts anticipate that Navitas Semiconductor Corporation will post -0.31 EPS for the current year.

Institutional Trading of Navitas Semiconductor

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in Navitas Semiconductor in the second quarter worth about $290,970,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Navitas Semiconductor during the 2nd quarter valued at about $75,701,000. Tidal Investments LLC increased its position in Navitas Semiconductor by 161.2% during the 2nd quarter. Tidal Investments LLC now owns 1,132,184 shares of the company's stock valued at $20,289,000 after purchasing an additional 698,683 shares during the period. Wellington Management Group LLP bought a new stake in shares of Navitas Semiconductor in the 2nd quarter valued at about $16,757,000. Finally, Bank of America Corp DE raised its holdings in shares of Navitas Semiconductor by 17.2% in the 1st quarter. Bank of America Corp DE now owns 826,674 shares of the company's stock valued at $7,250,000 after purchasing an additional 121,162 shares in the last quarter. 46.14% of the stock is owned by hedge funds and other institutional investors.

About Navitas Semiconductor

Navitas Semiconductor Corporation NASDAQ: NVTS develops gallium nitride (GaN) and silicon carbide (SiC) power semiconductor technologies. Its products are designed to improve the efficiency, power density and size of power-conversion systems used in electronic devices and infrastructure.

The company offers GaN power integrated circuits, including its GaNFast product family, as well as SiC devices and related technologies marketed under the GeneSiC brand. Its products are used in applications such as mobile and consumer chargers, data centers, solar and energy-storage systems, electric vehicles, appliances, industrial equipment and other high-power systems.

Founded in 2014, Navitas is headquartered in Torrance, California, and serves customers and markets internationally.

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