Navitas Semiconductor Corporation (NASDAQ: NVTS) experienced a notable decline in its stock price, dropping by 5.7% on December 15, 2023, following significant insider sales. The stock reached a low of $7.33 during the day, eventually closing at $7.38, down from its previous close of $7.83. Trading volume was markedly lower, with approximately 11,915,672 shares changing hands, a decline of 54% compared to the average daily volume of 26,015,598 shares.
Details of Insider Transactions
The decline in stock value was primarily attributed to the sale of shares by Dipender Saluja, a director at Navitas. On December 15, Saluja sold 873,488 shares at an average price of $8.10, totaling approximately $7,075,252.80. Following this transaction, Saluja retained 4,755,536 shares, valued at around $38,519,841.60, reflecting a 15.52% decrease in his position.
Prior to this, on December 12, Saluja also sold 315,396 shares at an average price of $8.65, amounting to $2,728,175.40. After this sale, he owned 5,629,024 shares valued at approximately $48,691,057.60, which represented a 5.31% reduction in his holdings.
Another insider, Ranbir Singh, also sold shares on December 12, disposing of 179,354 shares at an average price of $8.68, resulting in a total of $1,556,792.72. Singh’s remaining shares, 389,096, are valued at $3,377,353.28, reflecting a 31.55% decrease in his ownership.
Analyst Ratings and Market Performance
Market analysts have been assessing Navitas Semiconductor’s stock performance. On November 10, Rosenblatt Securities reaffirmed a “neutral” rating with a target price of $8.00. Conversely, Weiss Ratings assigned a “sell (d-)” rating on October 8. Meanwhile, Jefferies Financial Group upgraded its rating to “hold” on October 28, and Needham & Company LLC raised its price target from $8.00 to $13.00, labeling the stock as a “buy” on November 4. As it stands, two analysts rate the stock as a buy, five as hold, and two as sell. The consensus target price is $6.48.
Navitas Semiconductor currently holds a market capitalization of $1.70 billion and has a price-to-earnings (P/E) ratio of -11.53. The company’s stock has a 50-day moving average price of $10.20 and a 200-day moving average price of $7.99.
In its latest earnings announcement on November 3, 2023, Navitas reported earnings per share (EPS) of ($0.05), aligning with analyst expectations. The company generated $10.11 million in revenue for the quarter, slightly exceeding forecasts of $10.00 million, but reflecting a 53.4% decrease year-over-year. Analysts project an EPS of ($0.51) for the current fiscal year.
Recent activity among institutional investors shows significant interest in Navitas Semiconductor. Cranbrook Wealth Management LLC acquired a new stake valued at approximately $25,000 during the second quarter. Allworth Financial LP increased its stake by 309.4% in the third quarter, now owning 3,570 shares worth $26,000. Additionally, NewEdge Advisors LLC raised its holdings by 189.8%, owning 4,492 shares valued at $29,000. Approximately 46.14% of Navitas Semiconductor’s stock is currently held by institutional investors.
Navitas Semiconductor specializes in designing and developing gallium nitride power integrated circuits, silicon carbide, and high-speed silicon system controllers for various applications, including mobile devices, consumer electronics, and electric vehicles.
