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

Navitas Semiconductor Corporation (NASDAQ:NVTS)’s stock price 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, beating 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 business had revenue of $13.99 million for the quarter, compared to analysts’ expectations of $13.42 million. During the same quarter in the previous year, the business posted ($0.05) EPS. Navitas Semiconductor’s revenue for the quarter was up 38.4% on a year-over-year basis.

Trending Headlines about Navitas Semiconductor

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.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on NVTS. Wall Street Zen lowered shares of Navitas Semiconductor from a “hold” rating to a “sell” rating in a report on Saturday, October 3rd. Craig Hallum raised shares of Navitas Semiconductor from a “hold” rating to a “buy” rating and set a $13.00 target price for the company in a research note on Wednesday. Morgan Stanley reiterated an “underweight” rating and set a $12.60 target price on shares of Navitas Semiconductor in a report on Tuesday, July 28th. Jefferies Financial Group set a $13.00 price target on Navitas Semiconductor in a research note on Tuesday, July 28th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Navitas Semiconductor in a research note on Monday, September 14th. Four research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $14.43.

Institutional Trading of Navitas Semiconductor

A number of hedge funds and other institutional investors have recently made changes to their positions in NVTS. Rakuten Securities Inc. acquired a new position in Navitas Semiconductor during the second quarter worth $27,000. Root Financial Partners LLC acquired a new position in shares of Navitas Semiconductor during the 3rd quarter worth about $27,000. Beaird Harris Wealth Management LLC boosted its stake in shares of Navitas Semiconductor by 247.8% during the 2nd quarter. Beaird Harris Wealth Management LLC now owns 1,739 shares of the company’s stock worth $31,000 after buying an additional 1,239 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of Navitas Semiconductor by 3,200.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 4,125 shares of the company’s stock valued at $36,000 after acquiring an additional 4,000 shares in the last quarter. Finally, State of Wyoming grew its holdings in shares of Navitas Semiconductor by 92.8% in the 1st quarter. State of Wyoming now owns 4,803 shares of the company’s stock valued at $42,000 after acquiring an additional 2,312 shares in the last quarter. 46.14% of the stock is currently owned by institutional investors and hedge funds.

Navitas Semiconductor Stock Performance

The company has a fifty day moving average price of $10.73 and a two-hundred day moving average price of $13.23. The company has a market cap of $2.41 billion, a P/E 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.