This trade activity should not be overlooked: Navitas Semiconductor Corporation (NVTS)

Navitas Semiconductor Corporation (NASDAQ: NVTS) stock jumped 18.36% on Friday to $5.35 against a previous-day closing price of $4.52. With 1.09 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.06 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $5.38 whereas the lowest price it dropped to was $4.64. The 52-week range on NVTS shows that it touched its highest point at $22.19 and its lowest point at $3.51 during that stretch. It currently has a 1-year price target of $9.62.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NVTS was up-trending over the past week, with a rise of 1.13%, but this was up by 42.67% over a month. Three-month performance dropped to -10.08% while six-month performance fell -50.69%. The stock lost -46.07% in the past year, while it has lost -68.55% so far this year. A look at the trailing 12-month EPS for NVTS yields -0.62 with Next year EPS estimates of -0.23. For the next quarter, that number is -0.09. This implies an EPS growth rate of -701.60% for this year and 29.00% for next year.

Float and Shares Shorts:

At present, 119.54 million NVTS shares are outstanding with a float of 86.22 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.56 million, which was 4.49% higher than short shares on Jun 14, 2022. In addition to Mr. Eugene A. Sheridan as the firm’s Co-Founder, CEO, Pres & Chairman, Mr. Daniel M. Kinzer serves as its Co-Founder, CTO, COO & Director.

Institutional Ownership:

Through their ownership of 32.84% of NVTS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.26% of NVTS, in contrast to 6.83% held by mutual funds. Shares owned by individuals account for 2.84%. As the largest shareholder in NVTS with 3.51% of the stake, SSgA Funds Management, Inc. holds 4,341,127 shares worth 4,341,127. A second-largest stockholder of NVTS, BAMCO, Inc., holds 2,606,671 shares, controlling over 2.11% of the firm’s shares. Invesco Capital Management LLC is the third largest shareholder in NVTS, holding 2,034,888 shares or 1.65% stake. With a 2.27% stake in NVTS, the Invesco WilderHill Clean Energy E is the largest stakeholder. A total of 2,812,030 shares are owned by the mutual fund manager. The SPDR S&P Semiconductor ETF, which owns about 2.07% of NVTS stock, is the second-largest Mutual Fund holder. It holds 2,556,181 shares valued at 9.87 million. Baron Discovery Fund holds 1.42% of the stake in NVTS, owning 1,750,000 shares worth 6.75 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, NVTS reported revenue of $6.74M and operating income of -$34.99M. Over the past year, revenue came in at $25.16M while operating income stood at -$96.24M. It generated $79.79M net income for the quarter, which came to -$65.55M over the last twelve months. The EBITDA in the recently reported quarter was -$86.54M and diluted EPS was $0.61. EBITDA for the full year was -$101.58M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NVTS since 8 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NVTS analysts setting a high price target of $15.00 and a low target of $5.00, the average target price over the next 12 months is $9.63. Based on these targets, NVTS could surge 180.37% to reach the target high and fall by -6.54% to reach the target low. Reaching the average price target will result in a growth of 80.0% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NVTS will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of -$0.30 being high and -$0.32 being low. For NVTS, this leads to a yearly average estimate of -$0.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Navitas Semiconductor Corporation surprised analysts by $0.00 when it reported -$0.08 EPS against a consensus estimate of -$0.08. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.08 and the low estimate is -$0.09. The average estimate for the next quarter is thus -$0.09.

Summary of Insider Activity:

Insiders traded NVTS stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 375,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 3 over the past year. The total number of shares bought during that period was 41,710,893 while 876,829 shares were sold.

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