Navitas Semiconductor (NASDAQ:NVTS) Shares Gap Up – Still a Buy?

Navitas Semiconductor Corporation (NASDAQ:NVTS) gapped up before the market opened on Tuesday. The stock had previously closed at $11.73, but opened at $12.81. Navitas Semiconductor shares last traded at $11.8890, with a volume of 13,146,115 shares trading hands.

Key Headlines Impacting Navitas Semiconductor

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

• Positive Sentiment: Navitas was selected for the U.S. Army’s ALATTIS (Accelerated, Large-Area, 10 kV SiC IGBT) program, under which it will develop advanced 10 kV SiC power semiconductor technology. The award strengthens Navitas’ credibility in high-voltage power devices and could create longer-term opportunities in defense and other demanding power applications. U.S. Government Selects Navitas to Develop Next-Generation 10 kV SiC Power Semiconductors
• Positive Sentiment: Investors appear to view the Army selection as a meaningful validation of Navitas’ SiC technology, with reports highlighting a sharp after-hours reaction and continued interest in the stock. The announcement may improve sentiment despite the company’s still-unprofitable operations and declining year-over-year revenue. Navitas Stock Extends Gains After Army Selects It for SiC Power Chip Development
• Neutral Sentiment: Rosenblatt Securities reaffirmed its Neutral rating and set a $13.00 price target, implying roughly 9.7% upside from the recently cited $11.85 share price. The target suggests some additional potential, but the unchanged rating indicates analysts are not yet convinced that the government program materially changes Navitas’ risk-reward profile.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Navitas Semiconductor in a research note on Monday, September 14th. Needham & Company LLC reaffirmed a “buy” rating and set a $21.00 target price on shares of Navitas Semiconductor in a research report on Tuesday, July 28th. Rosenblatt Securities reaffirmed a “neutral” rating and set a $13.00 target price on shares of Navitas Semiconductor in a research report on Tuesday. Jefferies Financial Group set a $13.00 price target on Navitas Semiconductor in a report on Tuesday, July 28th. Finally, Morgan Stanley reissued an “underweight” rating and issued a $12.60 price target on shares of Navitas Semiconductor in a research report on Tuesday, July 28th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $15.92.

Navitas Semiconductor Trading Up 1.3%

The company has a market cap of $3.10 billion, a PE ratio of -8.89 and a beta of 3.88. The firm’s 50-day simple moving average is $12.06 and its two-hundred day simple moving average is $15.10.

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 analysts’ consensus estimates of ($0.04). Navitas Semiconductor had a negative net margin of 856.85% and a negative return on equity of 13.13%. The business had revenue of $10.53 million during the quarter, compared to analysts’ expectations of $9.97 million. During the same quarter last year, the company posted ($0.25) earnings per share. The business’s quarterly revenue was down 27.3% on a year-over-year basis. As a group, analysts predict that Navitas Semiconductor Corporation will post -0.31 EPS for the current year.

Institutional Trading of Navitas Semiconductor

Several large investors have recently added to or reduced their stakes in the company. Rakuten Securities Inc. acquired a new position in shares of Navitas Semiconductor in the second quarter valued at about $27,000. Beaird Harris Wealth Management LLC raised its stake in shares of Navitas Semiconductor by 247.8% in the second quarter. Beaird Harris Wealth Management LLC now owns 1,739 shares of the company’s stock worth $31,000 after purchasing an additional 1,239 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Navitas Semiconductor by 3,200.0% during the first quarter. Geneos Wealth Management Inc. now owns 4,125 shares of the company’s stock worth $36,000 after purchasing an additional 4,000 shares during the period. State of Wyoming lifted its holdings in shares of Navitas Semiconductor by 92.8% during the first quarter. State of Wyoming now owns 4,803 shares of the company’s stock worth $42,000 after purchasing an additional 2,312 shares during the period. Finally, Sarver Vrooman Wealth Advisors acquired a new stake in shares of Navitas Semiconductor during the fourth quarter worth about $45,000. Hedge funds and other institutional investors own 46.14% of the company’s stock.

Navitas Semiconductor Company Profile

Navitas Semiconductor Corporation (NASDAQ: NVTS) develops gallium nitride (GaN) and silicon carbide (SiC) power semiconductor technologies. Its products are designed to improve the efficiency, power density and size of power-conversion systems used in electronic devices and infrastructure.

The company offers GaN power integrated circuits, including its GaNFast product family, as well as SiC devices and related technologies marketed under the GeneSiC brand. Its products are used in applications such as mobile and consumer chargers, data centers, solar and energy-storage systems, electric vehicles, appliances, industrial equipment and other high-power systems.

Founded in 2014, Navitas is headquartered in Torrance, California, and serves customers and markets internationally.