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Have Navitas Semiconductor Insiders Been Selling Stock?

Simply Wall St ·  Sep 1 21:25

We'd be surprised if Navitas Semiconductor Corporation (NASDAQ:NVTS) shareholders haven't noticed that the Co-Founder, Daniel Kinzer, recently sold US$465k worth of stock at US$3.10 per share. However, the silver lining is that the sale only reduced their total holding by 3.3%, so we're hesitant to read anything much into it, on its own.

Navitas Semiconductor Insider Transactions Over The Last Year

In fact, the recent sale by Daniel Kinzer was the biggest sale of Navitas Semiconductor shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$3.02. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Navitas Semiconductor insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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NasdaqGM:NVTS Insider Trading Volume September 1st 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Navitas Semiconductor insiders own 19% of the company, currently worth about US$108m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Navitas Semiconductor Insider Transactions Indicate?

Insiders sold Navitas Semiconductor shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 4 warning signs for Navitas Semiconductor (1 is concerning!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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