Is Navitas Stock a Buy or Sell After a Director Dumps Shares Worth $1.6 Million?

On Dec. 12, 2025, Board of Directors member Dr. Ranbir Singh reported the indirect sale of 179,354 shares of Navitas Semiconductor (NASDAQ:NVTS), valued at ~$1.6 million, as disclosed in the SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 reported price ($8.68).

Key questions

• How does this transaction compare to Dr. Singh’s historical selling activity?
  The 179,354 shares sold in this filing are materially smaller than Dr. Singh’s recent sell-only median of 836,947 shares, consistent with the reduced holding base following a series of large sales earlier in 2025.
• What is the ownership impact following this transaction?
  Dr. Singh’s direct ownership remains at zero, and indirect holdings — attributed entirely to SiCPower, LLC — declined from 568,450 to 389,096 shares, representing a 31.55% reduction in his indirect stake.
• Was the transaction executed at a premium, discount, or in line with market pricing?
  The reported transaction price of $8.68 per share was slightly above the Dec. 12, 2025 closing price of $8.59.
• What is the significance of the indirect structure via SiCPower, LLC?
  All shares involved were held through SiCPower, LLC, with Dr. Singh acting as sole manager and disclaiming beneficial ownership except in his management capacity, clarifying that the disposition reflects entity-level management rather than personal trading of directly held shares.

Company overview

* 1-year price change calculated using Dec. 12, 2025 as the reference date.

Company snapshot

• Navitas Semiconductor designs and sells gallium nitride (GaN) power integrated circuits, which are used in applications such as consumer electronics, data centers, and electric vehicles.
• The company generates revenue by developing and selling advanced GaN power ICs to manufacturers and OEMs seeking higher efficiency and smaller form factors.
• Primary customers include electronics manufacturers and system integrators operating in China, the United States, Taiwan, Korea, and other international markets.

Navitas Semiconductor operates at the intersection of advanced power electronics and energy efficiency, leveraging proprietary GaN technology to deliver high-performance integrated circuits. The company's strategy focuses on enabling faster, smaller, and more efficient power solutions for a range of high-growth end markets.

With a footprint spanning multiple geographies and a focus on innovation, Navitas aims to capitalize on the accelerating adoption of GaN technology in next-generation electronic devices.

What this transaction means for investors

Board of Directors member Dr. Ranbir Singh's sale of Navitas Semiconductor stock on Dec. 12 is noteworthy because it represents a significant amount of his remaining shares held indirectly via SiCPower, LLC. It also comes on the heels of fellow Director Gary Kent Wunderlich's Dec. 10 and Dec. 11 sale of company shares.

The size and number of insider stock sales is concerning. Navitas shares saw a run up this year due to investor excitement around the rapid growth of the artificial intelligence market. Products sold by Navitas are used by data centers which house AI systems.

Even so, Navitas Semiconductor's sales in the third quarter were down to $10.1 million compared to $21.7 million in the prior year, and the company is not profitable. Considering the revenue decline despite the hot AI field, coupled with substantial insider stock sales after a share price run up, Navitas does not look like a stock to buy. If you own shares, now is the time to sell given its high price-to-sales ratio of 27.

Glossary

Indirect sale: A transaction where shares are sold through an entity or account, not directly by the individual.
Form 4: A required SEC filing disclosing insider trades by company officers, directors, or significant shareholders.
Disclaiming beneficial ownership: Statement that a person does not personally benefit from shares, except in a specific management role.
Beneficial ownership: The right to benefit from shares, even if not held in one's own name.
SiCPower, LLC: A limited liability company used as an entity to hold and manage shares on behalf of insiders.
Disposition: The act of selling or otherwise transferring ownership of an asset or security.
Median sale: The middle value in a series of sale amounts, used to show typical transaction size.
Entity-level management: Oversight and control of assets or shares by a company or organization, not by an individual directly.
OEM (Original Equipment Manufacturer): A company that produces parts or equipment used in another company's end products.
Gallium nitride (GaN): A semiconductor material enabling faster, more efficient electronic components than traditional silicon.
TTM: The 12-month period ending with the most recent quarterly report.
Integrated circuit (IC): A set of electronic circuits on a small chip, used in modern electronic devices.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.