Navitas Semiconductor (NASDAQ:NVTS) Trading Down 12.3% – What’s Next?

Navitas Semiconductor Corporation (NASDAQ:NVTS)’s share price was down 12.3% during trading on Tuesday . The stock traded as low as $9.43 and last traded at $10.01. 28,622,227 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 26,874,152 shares. The stock had previously closed at $11.41.

More Navitas Semiconductor News

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

• Positive Sentiment: Revenue beat and upbeat guidance: Navitas reported second-quarter revenue of $10.53 million, above the $9.97 million consensus estimate, while adjusted EPS of negative $0.04 matched expectations. The company projected third-quarter revenue of $13 million to $14 million, well above the $11.1 million analyst consensus. NVTS Q2 Earnings Meet Estimates, Revenues Beat on High-Power Growth
• Positive Sentiment: AI infrastructure opportunity: Management said demand for high-power semiconductors is accelerating because of power bottlenecks in AI infrastructure. The company is shifting toward higher-power markets through its “Navitas 2.0” strategy, which could expand its addressable market and support stronger margins. NVTS Q2 Earnings Call Highlights AI Power Shift and Growth Outlook
• Positive Sentiment: Analyst support remains: Needham reaffirmed its Buy rating with a $21 price target, while Rosenblatt maintained a Neutral rating and a $13 target. Both targets are above the current trading level, though the differing ratings indicate uncertainty about execution and valuation. Needham Reiterates Buy Rating
• Neutral Sentiment: Improved financial flexibility: Reports highlighted a cash balance of approximately $557.4 million, giving Navitas resources to fund product development and expansion in AI-related power markets. Navitas 2.0 Transition Strengthens AI-Powered Growth
• Negative Sentiment: Large losses remain the primary concern: Although the adjusted loss met estimates, Navitas continues to report deeply negative profitability, including a negative net margin of roughly 331%. Revenue was also down 27.3% year over year, leading some investors to focus more on current losses than on the AI growth narrative. Navitas Semiconductor Falls on Large Loss Despite Q2 Revenue Beat

Wall Street Analyst Weigh In

A number of brokerages have commented on NVTS. Weiss Ratings raised Navitas Semiconductor from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, June 17th. Needham & Company LLC restated a “buy” rating and issued a $21.00 price target on shares of Navitas Semiconductor in a research note on Tuesday. Morgan Stanley reaffirmed an “underweight” rating and set a $12.60 price target on shares of Navitas Semiconductor in a research report on Tuesday. Robert W. Baird lifted their price objective on shares of Navitas Semiconductor from $9.00 to $20.00 and gave the stock an “outperform” rating in a research note on Monday, May 4th. Finally, Jefferies Financial Group set a $13.00 price objective on shares of Navitas Semiconductor in a report on Tuesday. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $14.27.

Navitas Semiconductor Stock Down 12.3%

The stock has a 50 day moving average of $19.83 and a 200 day moving average of $14.19. The firm has a market cap of $2.34 billion, a price-to-earnings ratio of -15.89 and a beta of 3.82.

Navitas Semiconductor (NASDAQ:NVTS) last posted its quarterly earnings results on Monday, July 27th. The company reported ($0.04) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.04). The business had revenue of $10.53 million for the quarter, compared to analyst estimates of $9.97 million. Navitas Semiconductor had a negative net margin of 330.67% and a negative return on equity of 14.30%. The firm’s revenue for the quarter was down 27.3% on a year-over-year basis. During the same quarter last year, the business posted ($0.25) EPS. As a group, analysts predict that Navitas Semiconductor Corporation will post -0.39 EPS for the current fiscal year.

Insider Activity at Navitas Semiconductor

In related news, Director Richard J. Hendrix sold 110,165 shares of Navitas Semiconductor stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $28.96, for a total transaction of $3,190,378.40. Following the sale, the director directly owned 101,709 shares of the company’s stock, valued at approximately $2,945,492.64. The trade was a 52.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Gary Kent Wunderlich, Jr. sold 35,165 shares of the company’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $28.14, for a total transaction of $989,543.10. Following the transaction, the director owned 2,375,060 shares of the company’s stock, valued at approximately $66,834,188.40. This represents a 1.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 3,989,478 shares of company stock valued at $116,356,387. 12.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Beaird Harris Wealth Management LLC lifted its stake in shares of Navitas Semiconductor by 247.8% in the 2nd quarter. Beaird Harris Wealth Management LLC now owns 1,739 shares of the company’s stock valued at $31,000 after acquiring an additional 1,239 shares during the last quarter. Bank of America Corp DE grew its position in Navitas Semiconductor by 17.2% during the 1st quarter. Bank of America Corp DE now owns 826,674 shares of the company’s stock worth $7,250,000 after acquiring an additional 121,162 shares during the last quarter. Arkadios Wealth Advisors acquired a new position in Navitas Semiconductor in the 1st quarter worth about $123,000. California State Teachers Retirement System increased its holdings in Navitas Semiconductor by 39.8% in the 1st quarter. California State Teachers Retirement System now owns 227,220 shares of the company’s stock worth $1,993,000 after purchasing an additional 64,643 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in Navitas Semiconductor by 12.5% in the first quarter. The Manufacturers Life Insurance Company now owns 93,115 shares of the company’s stock valued at $817,000 after purchasing an additional 10,323 shares during the last quarter. 46.14% of the stock is currently owned by institutional investors and hedge funds.

About Navitas Semiconductor

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.