Don't Ignore The Insider Selling In Navitas Semiconductor

Anyone interested in Navitas Semiconductor Corporation (NASDAQ:NVTS) should probably be aware that the Independent Director, David Moxam, recently divested US$156k worth of shares in the company, at an average price of US$2.08 each. On the bright side, that sale was only 9.0% of their holding, so we doubt it's very meaningful, on its own.

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Navitas Semiconductor Insider Transactions Over The Last Year

The insider, Daniel Kinzer, made the biggest insider sale in the last 12 months. That single transaction was for US$465k worth of shares at a price of US$3.10 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.00. So it may not shed much light on insider confidence at current levels.

Navitas Semiconductor insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Navitas Semiconductor

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Navitas Semiconductor insiders own 19% of the company, worth about US$76m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other 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. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. For example - Navitas Semiconductor has 3 warning signs we think you should be aware of.

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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.