Trade Alert: Senior VP Of Navitas Semiconductor Ronald Shelton Has Sold Stock

We'd be surprised if Navitas Semiconductor Corporation (NASDAQ:NVTS) shareholders haven't noticed that the Senior VP, Ronald Shelton, recently sold US$226k worth of stock at US$7.54 per share. That sale was 46% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Navitas Semiconductor

The Last 12 Months Of Insider Transactions At Navitas Semiconductor

The Executive Vice President of GeneSiC Business, Ranbir Singh, made the biggest insider sale in the last 12 months. That single transaction was for US$120m worth of shares at a price of US$6.46 each. That means that even when the share price was below the current price of US$7.54, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 43% of Ranbir Singh's holding.

Insiders in Navitas Semiconductor didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Navitas Semiconductor

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Navitas Semiconductor insiders own 20% of the company, currently worth about US$263m 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?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Every company has risks, and we've spotted 3 warning signs for Navitas Semiconductor you should know about.

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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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