Anyone interested in Navitas Semiconductor Corporation (NASDAQ:NVTS) should probably be aware that the Independent Director, Richard Hendrix, recently divested US$323k worth of shares in the company, at an average price of US$4.04 each. The eyebrow raising move amounted to a reduction of 14% in their holding.
Navitas Semiconductor Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Co-Founder, Daniel Kinzer, for US$465k worth of shares, at about US$3.10 per share. That means that even when the share price was below the current price of US$3.77, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 3.3% of Daniel Kinzer's holding.
Insiders in Navitas Semiconductor didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Navitas Semiconductor insiders own about US$138m worth of shares (which is 20% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Navitas Semiconductor Tell Us?
An insider 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 5 warning signs for Navitas Semiconductor (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.
But note: Navitas Semiconductor may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
