Navitas Semiconductor (NASDAQ:NVTS) Shares Gap Up After Better-Than-Expected Earnings

Shares of Navitas Semiconductor Corporation (NASDAQ:NVTS) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $8.56, but opened at $9.37. Navitas Semiconductor shares last traded at $9.1560, with a volume of 7,070,046 shares.

The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.01. Navitas Semiconductor had a negative return on equity of 13.13% and a negative net margin of 856.85%. The firm had revenue of $13.99 million for the quarter, compared to analyst estimates of $13.42 million. During the same quarter in the previous year, the firm earned ($0.05) EPS. The business’s quarterly revenue was up 38.4% on a year-over-year basis.

Navitas Semiconductor News Roundup

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

• Positive Sentiment: Navitas reported a third-quarter loss of $0.03 per share, narrower than analysts’ expected $0.04 loss. Revenue of $13.99 million topped estimates and rose 38% year over year. Q3 results
• Positive Sentiment: The company expects another quarter of double-digit sequential revenue growth in Q4, which would make it the strongest quarter in seven quarters. It says AI data centers and grid and energy infrastructure are driving its record backlog and could account for more than 40% of sales by year-end. Q3 financial results and outlook
• Positive Sentiment: Analyst sentiment strengthened: Craig Hallum upgraded NVTS from Hold to Buy with a $13 price target, while Rosenblatt also upgraded the stock to Buy. Rosenblatt upgrade
• Neutral Sentiment: Needham lowered its price target from $21 to $15 but kept its Buy rating, signaling a more cautious valuation while remaining positive on the shares. Needham price-target update
• Negative Sentiment: Despite the narrower-than-expected quarterly loss, Navitas is still unprofitable, and its outlook relies on high-power growth offsetting its exit from mobile and low-end consumer markets.

Wall Street Analyst Weigh In

NVTS has been the topic of a number of recent analyst reports. Craig Hallum upgraded shares of Navitas Semiconductor from a “hold” rating to a “buy” rating and set a $13.00 target price on the stock in a report on Wednesday. Rosenblatt Securities upgraded shares of Navitas Semiconductor from a “neutral” rating to a “buy” rating and set a $13.00 price target for the company in a research note on Wednesday. Wall Street Zen downgraded shares of Navitas Semiconductor from a “hold” rating to a “sell” rating in a research report on Saturday, October 3rd. Jefferies Financial Group set a $13.00 price objective on shares of Navitas Semiconductor in a research note on Tuesday, July 28th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Navitas Semiconductor in a research note on Monday, September 14th. Four investment analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $14.43.

Institutional Inflows and Outflows

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

Navitas Semiconductor Price Performance

The business’s 50-day moving average price is $10.73 and its two-hundred day moving average price is $13.23. The company has a market capitalization of $2.41 billion, a price-to-earnings ratio of -6.92 and a beta of 4.04.

About Navitas Semiconductor

Navitas Semiconductor Corporation (NASDAQ:NVTS) develops power semiconductor technologies designed to improve the efficiency, performance and size of electronic systems. The company specializes in gallium nitride (GaN) power integrated circuits and silicon carbide (SiC) devices, which are used to convert and manage electrical power.

Its product portfolio includes GaNFast power ICs, GeneSiC silicon carbide products and related power-management solutions. These technologies are used in applications such as mobile and consumer chargers, data centers, solar inverters, electric vehicles, energy storage systems, appliances and industrial equipment.

Founded in 2014, Navitas serves customers and markets globally through its semiconductor products and engineering support.