Navitas Semiconductor (NASDAQ:NVTS) Shares Down 5.1% – Here’s What Happened

Navitas Semiconductor Corporation (NASDAQ:NVTS)’s share price dropped 5.1% during trading on Thursday . The company traded as low as $11.76 and last traded at $12.03. Approximately 12,555,113 shares changed hands during trading, a decline of 54% from the average session volume of 27,008,781 shares. The stock had previously closed at $12.67.

Key Stories Impacting Navitas Semiconductor

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

• Positive Sentiment: Navitas announced a strategic silicon carbide licensing partnership with Magnachip, giving Magnachip access to Navitas’ GeneSiC Gen 4 and Gen 5 technology across 1200V to 3300V+ applications. Investors may see this as a validation of Navitas’ SiC roadmap and a potential growth driver in high-voltage power markets. Article Title
• Positive Sentiment: Several analyses highlighted the company’s exposure to AI data center demand and suggested the new SiC deal could improve the investment case, with some commentary calling NVTS potentially undervalued. Article Title
• Neutral Sentiment: Navitas heads into its Q2 earnings release with investors watching for signs that AI/data-center momentum is offsetting near-term revenue transition risks. Article Title
• Negative Sentiment: One report argued the stock still looks expensive after the SiC partnership news, which could limit upside if investors remain focused on valuation rather than long-term growth. Article Title
• Negative Sentiment: Renesas filed a lawsuit accusing Navitas of trade-secret theft, adding legal overhang and potential headline risk for the stock. Article Title

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Morgan Stanley restated an “underweight” rating and issued a $13.70 price objective on shares of Navitas Semiconductor in a report on Wednesday, May 6th. Wall Street Zen raised Navitas Semiconductor from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings raised Navitas Semiconductor from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, June 17th. Needham & Company LLC boosted their price target on Navitas Semiconductor from $13.00 to $21.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Finally, Robert W. Baird upped their price objective on Navitas Semiconductor from $9.00 to $20.00 and gave the stock an “outperform” rating in a research note on Monday, May 4th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Navitas Semiconductor has an average rating of “Hold” and an average target price of $14.74.

Navitas Semiconductor Stock Performance

The business’s 50-day moving average price is $20.00 and its 200 day moving average price is $14.14. The company has a market cap of $2.55 billion, a P/E ratio of -17.33 and a beta of 3.82.

Navitas Semiconductor (NASDAQ:NVTS) last released its quarterly earnings data 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. Navitas Semiconductor had a negative net margin of 330.67% and a negative return on equity of 14.30%. The company had revenue of $8.60 million for the quarter, compared to analyst estimates of $8.22 million. During the same period in the previous year, the business earned ($0.06) EPS. Navitas Semiconductor’s revenue for the quarter was down 38.7% compared to the same quarter last year. Equities research analysts forecast that Navitas Semiconductor Corporation will post -0.39 earnings per share for the current year.

Insiders Place Their Bets

In other Navitas Semiconductor news, Director Gary Kent Wunderlich, Jr. sold 73,000 shares of the company’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $28.11, for a total value of $2,052,030.00. Following the sale, the director owned 13,964 shares in the company, valued at $392,528.04. This represents a 83.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Chris Allexandre sold 13,323 shares of the firm’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 sale, the chief executive officer directly owned 1,072,633 shares of the company’s stock, valued at approximately $34,120,455.73. The trade was a 1.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 3,989,478 shares of company stock worth $116,356,387 in the last three months. 12.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Navitas Semiconductor

Several hedge funds have recently added to or reduced their stakes in NVTS. DNB Asset Management AS bought a new position in Navitas Semiconductor in the 4th quarter valued at about $774,000. UBS Group AG boosted its holdings 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 worth $23,612,000 after acquiring an additional 1,875,228 shares during the period. Newbridge Financial Services Group Inc. boosted 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 acquiring an additional 124,164 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Navitas Semiconductor during the fourth quarter worth approximately $484,000. Finally, Integrity Alliance LLC. acquired a new position in shares of Navitas Semiconductor in the fourth quarter valued at approximately $280,000. Institutional investors and hedge funds 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.