Navitas Semiconductor Senior VP Ronald Shelton Sells 38% Of Holding

We'd be surprised if Navitas Semiconductor Corporation (NASDAQ:NVTS) shareholders haven't noticed that the Senior VP, Ronald Shelton, recently sold US$332k worth of stock at US$8.31 per share. The eyebrow raising move amounted to a reduction of 38% in their holding.

View our latest analysis for Navitas Semiconductor

Navitas Semiconductor Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Vice President of GeneSiC Business, Ranbir Singh, for US$120m worth of shares, at about US$6.46 per share. That means that an insider was selling shares at slightly below the current price (US$8.49). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 43% of Ranbir Singh'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!

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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. We usually like to see fairly high levels of insider ownership. Navitas Semiconductor insiders own about US$278m worth of shares (which is 19% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Navitas Semiconductor Tell Us?

Insiders haven't bought Navitas Semiconductor stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with Navitas Semiconductor and understanding these should be part of your investment process.

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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, but not derivative transactions.

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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.