BlackRock Inc. Takes $730.56 Million Position in Power Integrations, Inc. $POWI

Key Points

• BlackRock acquired 8.72 million Power Integrations shares worth approximately $730.6 million, giving it a 15.65% stake in the semiconductor company.
• Power Integrations exceeded quarterly earnings expectations, reporting $0.37 in EPS versus $0.32 expected and revenue of $118.94 million. Revenue increased 2.6% year over year, although net margin was 5.58%.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and an average price target of $72.67, while insiders sold approximately $23.0 million of stock over the past 90 days.

BlackRock Inc. purchased a new stake in shares of Power Integrations, Inc. (NASDAQ:POWI - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 8,722,053 shares of the semiconductor company's stock, valued at approximately $730,559,000. BlackRock Inc. owned approximately 15.65% of Power Integrations at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in POWI. Geneos Wealth Management Inc. lifted its position in shares of Power Integrations by 576.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock worth $32,000 after buying an additional 536 shares during the last quarter. Harbor Investment Advisory LLC bought a new position in Power Integrations in the second quarter worth about $33,000. Kestra Advisory Services LLC acquired a new position in Power Integrations in the fourth quarter valued at approximately $36,000. UMB Bank n.a. grew its holdings in shares of Power Integrations by 61.7% during the fourth quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company's stock valued at $38,000 after purchasing an additional 410 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of Power Integrations by 125.5% during the first quarter. EverSource Wealth Advisors LLC now owns 814 shares of the semiconductor company's stock valued at $42,000 after purchasing an additional 453 shares during the last quarter.

Power Integrations Stock Performance

Shares of POWI opened at $55.18 on Friday. The firm has a market capitalization of $3.08 billion, a price-to-earnings ratio of 122.62 and a beta of 1.58. Power Integrations, Inc. has a one year low of $30.86 and a one year high of $91.18. The stock's fifty day moving average is $69.71 and its 200-day moving average is $63.06.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The semiconductor company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.05. The business had revenue of $118.94 million during the quarter, compared to the consensus estimate of $117.44 million. Power Integrations had a net margin of 5.58% and a return on equity of 5.50%. The company's quarterly revenue was up 2.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.35 earnings per share. Analysts forecast that Power Integrations, Inc. will post 0.77 EPS for the current fiscal year.

Insiders Place Their Bets

In other Power Integrations news, Director Balu Balakrishnan sold 124,287 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $86.44, for a total value of $10,743,368.28. Following the completion of the sale, the director directly owned 279,516 shares in the company, valued at $24,161,363.04. This represents a 30.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Sunil Gupta sold 6,860 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $83.67, for a total value of $573,976.20. Following the transaction, the vice president directly owned 64,379 shares of the company's stock, valued at approximately $5,386,590.93. The trade was a 9.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 273,997 shares of company stock worth $23,013,413 over the last ninety days. Company insiders own 1.20% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently issued reports on POWI shares. Williams Trading set a $80.00 price target on Power Integrations in a report on Thursday, August 6th. Weiss Ratings upgraded Power Integrations from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday. Stifel Nicolaus dropped their target price on Power Integrations from $95.00 to $80.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Power Integrations in a research note on Friday, May 8th. Finally, Needham & Company LLC reduced their price target on shares of Power Integrations from $90.00 to $80.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $72.67.

Power Integrations Company Profile

Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company's products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers.

The firm's product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion.

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