Power Integrations, Inc. (POWI) - What Are Researchers Thinking About This Stock?

Key Points

• Analyst sentiment is moderately bullish: Eight firms rate Power Integrations a “Moderate Buy,” split evenly between buy and hold recommendations, with an average 12-month price target of $68.83. Recent brokerages have generally lowered targets while maintaining positive or neutral ratings.
• The stock has declined significantly: Shares opened at $43.86, down 10.5%, and remain below their 50-day and 200-day moving averages. Power Integrations has a $2.45 billion market capitalization, a high price-to-earnings ratio of 97.47, and a beta of 1.54.
• Recent results modestly exceeded expectations: The company reported quarterly EPS of $0.37 versus the $0.32 consensus estimate and revenue of $118.94 million, up 2.6% year over year. Several major institutional investors, including BlackRock and William Blair, recently established or increased positions.

Shares of Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) have been assigned an average rating of "Moderate Buy" from the eight ratings firms that are currently covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $68.83.

Several brokerages have recently issued reports on POWI. Susquehanna lowered their price target on Power Integrations from $85.00 to $70.00 and set a "positive" rating on the stock in a research report on Wednesday, October 21st. Needham & Company LLC cut their price objective on Power Integrations from $90.00 to $80.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Weiss Ratings raised Power Integrations from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, August 19th. Zacks Research downgraded Power Integrations from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Stifel Nicolaus lowered their target price on Power Integrations from $80.00 to $72.00 and set a "buy" rating on the stock in a report on Monday, October 5th.

Power Integrations Trading Down 10.5%

Shares of Power Integrations stock opened at $43.86 on Friday. The firm has a fifty day simple moving average of $49.98 and a 200-day simple moving average of $58.55. The stock has a market capitalization of $2.45 billion, a price-to-earnings ratio of 97.47 and a beta of 1.54. Power Integrations has a 1-year low of $30.86 and a 1-year high of $91.18.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its earnings results on Wednesday, August 5th. The semiconductor company reported $0.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.05. The business had revenue of $118.94 million for the quarter, compared to analyst estimates of $117.44 million. Power Integrations had a net margin of 5.58% and a return on equity of 5.50%. Power Integrations's revenue was up 2.6% compared to the same quarter last year. During the same period last year, the business posted $0.35 EPS. As a group, research analysts predict that Power Integrations will post 0.77 earnings per share for the current year.

Institutional Investors Weigh In On Power Integrations

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Power Integrations in the 2nd quarter worth approximately $730,559,000. William Blair Investment Management LLC bought a new stake in shares of Power Integrations during the second quarter valued at approximately $199,517,000. Bank of New York Mellon Corp acquired a new position in shares of Power Integrations in the second quarter valued at $39,075,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Power Integrations in the second quarter valued at $34,281,000. Finally, Boston Trust Walden Corp raised its stake in shares of Power Integrations by 46.2% in the third quarter. Boston Trust Walden Corp now owns 1,290,017 shares of the semiconductor company's stock valued at $66,823,000 after purchasing an additional 407,546 shares in the last quarter.

Power Integrations Company Profile

Power Integrations, Inc designs and manufactures high-performance semiconductor technologies used in energy-efficient power conversion. Its products help convert and control electrical power in applications such as consumer electronics, appliances, industrial equipment, communications infrastructure, renewable-energy systems, and electric vehicles.

The company's product portfolio includes integrated circuits for AC-to-DC and DC-to-DC power supplies, LED lighting drivers, power-factor correction, motor drives, and high-voltage gate driving.

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