Shares of Navitas Semiconductor Corp (NVTS) are set to open sharply lower on Friday, plummeting 5.19% in pre-market trading. This significant decline comes in the wake of substantial insider selling that has rattled investor confidence in the semiconductor company.

The sell-off was primarily triggered by news that Navitas Semiconductor's President and CEO, Eugene Sheridan, offloaded approximately 2.16 million shares of the company. This large-scale disposal by the top executive has raised concerns among investors about the company's future prospects and current valuation. Adding to the negative sentiment, two other company directors, Gary Kent Wunderlich Jr. and David Moxam, also reported disposals of their common shares. Notably, David Moxam sold 714,199 shares at $6.5 per share on May 27, retaining only 78,649 shares after the transaction.

The timing and scale of these insider sales, particularly the CEO's massive share disposal, have clearly unsettled the market. Investors often view insider selling, especially when it involves multiple high-ranking executives, as a potential red flag regarding a company's outlook. As trading continues, market participants will likely be closely monitoring any further developments or statements from Navitas Semiconductor regarding these significant insider sales and their implications for the company's future.