U.S. markets closed
  • S&P Futures

    4,221.25
    +11.25 (+0.27%)
     
  • Dow Futures

    33,346.00
    +86.00 (+0.26%)
     
  • Nasdaq Futures

    13,446.00
    +54.00 (+0.40%)
     
  • Russell 2000 Futures

    1,974.70
    +5.20 (+0.26%)
     
  • Crude Oil

    91.63
    -0.30 (-0.33%)
     
  • Gold

    1,806.10
    -7.60 (-0.42%)
     
  • Silver

    20.57
    -0.18 (-0.85%)
     
  • EUR/USD

    1.0299
    -0.0003 (-0.03%)
     
  • 10-Yr Bond

    2.7860
    -0.0110 (-0.39%)
     
  • Vix

    19.74
    -2.03 (-9.32%)
     
  • GBP/USD

    1.2207
    -0.0011 (-0.09%)
     
  • USD/JPY

    132.8610
    -0.0120 (-0.01%)
     
  • BTC-USD

    24,069.45
    +1,245.68 (+5.46%)
     
  • CMC Crypto 200

    569.51
    +38.29 (+7.21%)
     
  • FTSE 100

    7,507.11
    +18.96 (+0.25%)
     
  • Nikkei 225

    27,819.33
    -180.63 (-0.65%)
     

Is Navitas Semiconductor Corporation (NASDAQ:NVTS) Popular Amongst Insiders?

  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

If you want to know who really controls Navitas Semiconductor Corporation (NASDAQ:NVTS), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Navitas Semiconductor is a smaller company with a market capitalization of US$498m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Navitas Semiconductor.

Check out our latest analysis for Navitas Semiconductor

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Navitas Semiconductor?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Navitas Semiconductor does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Navitas Semiconductor's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

Navitas Semiconductor is not owned by hedge funds. Our data shows that Malibu IQ, LLC is the largest shareholder with 10% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.0% and 7.8%, of the shares outstanding, respectively. Additionally, the company's CEO Eugene Sheridan directly holds 2.3% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Navitas Semiconductor

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Shareholders would probably be interested to learn that insiders own shares in Navitas Semiconductor Corporation. As individuals, the insiders collectively own US$35m worth of the US$498m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 26%, private equity firms could influence the Navitas Semiconductor board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Private Company Ownership

It seems that Private Companies own 6.2%, of the Navitas Semiconductor stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Navitas Semiconductor (at least 2 which are concerning) , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here