Sivers Semiconductors: A $1.2 Billion Order Book Sits Uneasily Against Insider Exits

Sivers Semiconductors drops 15% after Q2 miss; insider selling contrasts with warrant exercise, while $1.2B pipeline offers hope.

The optics could hardly be more contradictory. One of Sivers Semiconductors' institutional backers has just doubled down in a meaningful way, while several of its own board members spent the preceding weeks trimming their exposure. For a company already nursing a 27% weekly decline, the mixed messaging has left investors grappling with a simple question: which signal carries more weight?

The Stockholm-based chip developer closed Friday at EUR 2.44, down 15% on the session after delivering second-quarter numbers that disappointed. The stock now trades roughly 38% below its 50-day moving average of EUR 3.94, a gap that underscores just how quickly sentiment has deteriorated.

A Vote of Confidence, Delivered in Warrants

Mid-August brought what the company framed as a notable show of faith. Bootstrap Europe IV SCSp exercised all of its warrants, subscribing to 1,659,015 new ordinary shares. The move injected fresh capital into Sivers without requiring a separate equity issuance — and, crucially, the investor chose to convert rather than let the rights lapse, a decision that typically signals conviction in the underlying asset.

That endorsement, however, stands in stark contrast to activity further up the corporate ladder. Board chairman Bami Bastani sold 275,000 shares on July 16, while simultaneously donating 60,000 shares to charitable organizations and gifting another 70,000 to family members. Around the same period, Headwaters Capital LLC — representing board member Todd Thomson — disposed of 950,000 shares by July 22 and contributed 50,000 more to philanthropic causes. Thomson retains 477,027 shares following the transactions.

Charitable giving and family transfers can explain away part of the selling, but the sheer scale of the disposals is hard to dismiss entirely. When leadership figures reduce their stakes in sizeable chunks, the market tends to take notice — and not in a constructive way.

The Numbers Behind the Slide

The quarterly report that triggered Friday's sell-off showed group revenue of SEK 53.8 million for the second quarter, down from SEK 61.4 million in the same period last year. Adjusted EBITDA came in at minus SEK 35.5 million. Management attributed the top-line contraction to a deliberate pullback in NRE (non-recurring engineering) activities as customer programs shift toward production.

The strategic logic is visible in the product revenue line, which climbed 18% year-over-year — or 13% at constant exchange rates — suggesting the pivot to a product-centric model is gaining traction. The company also pointed to its order pipeline, which had grown to $1.2 billion by July, a 268% increase versus December 2025. That figure offers a compelling counter-narrative to the weak quarterly numbers, provided the pipeline converts into actual revenue.

Short Sellers Add to the Pressure

The stock's volatility — an annualized 169% on a 30-day basis — reflects more than just earnings disappointment. Public short positions at firms including Arrowstreet Capital emerged roughly a month ago, and the share price has since contracted by 29.3%. Citadel Securities has reportedly dropped off the list of disclosed short sellers, while Arrowstreet and D. E. Shaw remain in the frame.

The company has also moved to shore up its balance sheet, raising SEK 825 million through a rights issue and converting a $12 million convertible loan into equity. That capital buffer buys time for the transformation effort, but it does not resolve the central tension: with adjusted EBITDA still firmly negative, any future capital raise is likely to be met with skepticism.

The relative strength index sits at 37.2, suggesting the recent sell-off may be somewhat overdone without yet signaling a reversal. For now, the market's attention will focus on whether that $1.2 billion pipeline starts showing up in hard revenue figures — and whether the insider selling has run its course.