Stock Traders Buy High Volume of Call Options on Navitas Semiconductor (NASDAQ:NVTS)

Key Points

• Navitas Semiconductor saw unusually heavy options activity on Monday, with traders buying 105,750 call options — about 115% above its average daily volume.
• The stock jumped sharply to $22.32 on heavy trading volume, close to its 52-week high of $23.36 and well above its 50-day and 200-day moving averages.
• Analysts remain mixed but mostly cautious: the consensus rating is Hold with an average price target of $12.87, though some firms recently raised targets and one upgraded the stock to Hold.

Navitas Semiconductor Corporation (NASDAQ:NVTS - Get Free Report) saw unusually large options trading on Monday. Stock investors purchased 105,750 call options on the company. This represents an increase of 115% compared to the average daily volume of 49,239 call options.

Analysts Set New Price Targets

A number of brokerages recently issued reports on NVTS. Wall Street Zen upgraded Navitas Semiconductor from a "sell" rating to a "hold" rating in a research report on Saturday. Morgan Stanley restated an "underweight" rating and issued a $13.70 price target on shares of Navitas Semiconductor in a research report on Wednesday. Rosenblatt Securities lifted their target price on Navitas Semiconductor from $7.00 to $13.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Navitas Semiconductor in a research report on Tuesday, April 21st. Finally, Robert W. Baird lifted their target price on Navitas Semiconductor from $9.00 to $20.00 and gave the stock an "outperform" rating in a research report on Monday, May 4th. Two research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $12.87.

Navitas Semiconductor Price Performance

Shares of NASDAQ:NVTS traded up $4.12 on Monday, hitting $22.32. 38,500,249 shares of the company's stock were exchanged, compared to its average volume of 26,473,000. Navitas Semiconductor has a 12 month low of $1.88 and a 12 month high of $23.36. The stock has a market capitalization of $5.15 billion, a price-to-earnings ratio of -35.43 and a beta of 3.62. The business's 50 day simple moving average is $11.11 and its two-hundred day simple moving average is $9.96.

Navitas Semiconductor (NASDAQ:NVTS - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.01. The business had revenue of $8.60 million during the quarter, compared to the consensus estimate of $8.22 million. Navitas Semiconductor had a negative return on equity of 14.30% and a negative net margin of 330.67%.The business's revenue for the quarter was down 38.7% compared to the same quarter last year. During the same period last year, the company earned ($0.06) earnings per share. Equities analysts forecast that Navitas Semiconductor will post -0.26 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Todd Glickman sold 98,152 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $10.78, for a total value of $1,058,078.56. Following the completion of the sale, the chief financial officer directly owned 735,231 shares in the company, valued at $7,925,790.18. This trade represents a 11.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ranbir Singh sold 389,096 shares of the firm's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $9.52, for a total value of $3,704,193.92. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 509,016 shares of company stock worth $4,967,814 over the last three months. 29.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Navitas Semiconductor

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allworth Financial LP grew its stake in Navitas Semiconductor by 309.4% in the third 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. Geneos Wealth Management Inc. grew its stake in Navitas Semiconductor by 3,200.0% in the first quarter. Geneos Wealth Management Inc. now owns 4,125 shares of the company's stock valued at $36,000 after purchasing an additional 4,000 shares during the last quarter. NewEdge Advisors LLC grew its stake in Navitas Semiconductor by 189.8% in the second quarter. NewEdge Advisors LLC now owns 4,492 shares of the company's stock valued at $29,000 after purchasing an additional 2,942 shares during the last quarter. CWM LLC grew its stake in Navitas Semiconductor by 24.7% in the third quarter. CWM LLC now owns 4,515 shares of the company's stock valued at $33,000 after purchasing an additional 893 shares during the last quarter. Finally, GAMMA Investing LLC grew its stake in Navitas Semiconductor by 116.5% in the fourth quarter. GAMMA Investing LLC now owns 4,736 shares of the company's stock valued at $34,000 after purchasing an additional 2,548 shares during the last quarter. Hedge funds and other institutional investors own 46.14% of the company's stock.

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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