Is Navitas Stock a Buy or Sell After a Director Dumps Shares Worth $1.2 Million?
Key Points
Gary Kent Wunderlich, a member of the Navitas Board of Directors, sold 128,300 shares for a transaction value of $1,189,754.06 across two sessions in December 2025.
The sale represented 8.68% of Mr. Wunderlich's direct holdings at the time of the transaction.
All shares sold were held directly; indirect holdings of 1,263,000 shares via Live Oak Sponsor Partners II, LLC were unchanged.
With only 86,964 shares remaining directly, recent trade sizes reflect shrinking available direct capacity after sequential sell-downs.
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Navitas Board of Directors member Gary Kent Wunderlich sold 128,300 shares of Navitas Semiconductor Corporation (NASDAQ:NVTS) in open-market transactions on Dec. 10 and Dec. 11, 2025, totaling $1,189,754.06, according to the SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 128,300 |
| Transaction value | $1.2 million |
| Post-transaction shares (direct) | 86,964 |
| Post-transaction shares (indirect) | 1,263,000 |
| Post-transaction value (direct ownership) | ~$798,329.52 |
Transaction value based on SEC Form 4 weighted average purchase price ($9.27); post-transaction value based on Dec. 11, 2025 market close ($9.27).
Key questions
- How significant was this sale relative to Mr. Wunderlich's historical trading pattern?
The 128,300 shares sold in this event exceeds both the median (49,967 shares) and mean (65,698 shares) size for Mr. Wunderlich's prior sell-only transactions. - What was the impact on Mr. Wunderlich's direct ownership stake?
Direct holdings dropped from 215,264 shares to 86,964 shares, leaving his remaining direct stake at 0.0404% of outstanding shares as of the latest report. - How does this sale affect indirect holdings or associated entities?
There was no change in indirect ownership; 1,263,000 shares remain held via Live Oak Sponsor Partners II, LLC, with the filing and footnotes clarifying no recent movement in these positions. - What does the shrinking direct capacity imply for future trading cadence?
Given only 86,964 directly-held shares remain, any future direct sales will necessarily be smaller in absolute terms, reflecting depleted available capacity rather than a change in intent or cadence.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $1.98 billion |
| Revenue (TTM) | $56.60 million |
| Net income (TTM) | ($125.00 million) |
| 1-year price change | 149.71% |
* 1-year price change calculated as of Dec. 11, 2025.
Company snapshot
- Navitas Semiconductor Corporation designs and sells gallium nitride (GaN) power integrated circuits, with revenue primarily from sales to electronics and semiconductor markets.
- The company targets manufacturers in China, the United States, Taiwan, Korea, and other international markets seeking advanced power management solutions.
Navitas Semiconductor Corporation is a technology company specializing in the development of GaN power integrated circuits, enabling higher efficiency and smaller form factors for power electronics. The company leverages a fabless model to focus on innovation and intellectual property, positioning itself as a key supplier to global electronics manufacturers. With a strategic emphasis on energy-efficient solutions, Navitas aims to capture growth opportunities in next-generation semiconductor applications.
What this transaction means for investors
The reduction in direct shares held by Navitas Board of Directors member Gary Kent Wunderlich is worth noting because it reduced his position substantially. While Mr. Wunderlich still has over a million Navitas shares indirectly, his disposition of about half his direct holdings after the stock had a massive run up this year suggests he is taking the opportunity to cash in.
Navitas shares have surged thanks to the fervor around artificial intelligence. The semiconductor company is shifting its focus towards the data center market. This area has seen massive tech spending as infrastructure is being built to accommodate AI systems.
On top of that, the company is partnering with AI semiconductor chip leader Nvidia, which also helped fuel Navitas stock's rise. After it announced it's working with Nvidia, Navitas shares soared to a 52-week high of $17.79 in October.
Right now, Navitas stock's valuation in on the high side with a price-to-sales ratio of about 30. It's a good time to sell Navitas shares, as Mr. Wunderlich has done, but it's not prudent to buy at this time.
Glossary
Form 4: A required SEC filing disclosing insider transactions in a company's securities.
Open-market transaction: The purchase or sale of securities on a public exchange, not through private negotiation.
Direct holdings: Shares owned personally by an individual, not through another entity or account.
Indirect holdings: Shares owned through another entity, such as a partnership or trust, rather than directly.
Live Oak Sponsor Partners II, LLC: An investment entity or partnership holding shares on behalf of its members or affiliates.
Weighted average purchase price: The average price per share, weighted by the number of shares bought or sold at each price.
Outstanding shares: The total number of a company's shares currently held by all shareholders, including insiders and the public.
Fabless model: A business approach where a company designs but does not manufacture its own semiconductor chips.
Gallium nitride (GaN): A semiconductor material used for high-efficiency, high-performance power electronics.
Sequential sell-down: The process of gradually reducing a position through multiple sales over time.
Insider trading: The buying or selling of a company's securities by individuals with access to nonpublic, material information.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
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