Power Integrations, Inc. (NASDAQ:POWI) Given Average Rating of "Hold" by Analysts

Key Points

• Analyst consensus: Hold — Six analysts cover Power Integrations with a split of 1 sell, 2 hold and 3 buy ratings and an average 12‑month price target of $59.75, while recent notes ranged from Northland's $46 market‑perform to Benchmark's $65 buy.
• Q4 results slightly beat estimates with $0.23 EPS vs $0.19 expected and $103.2M revenue, but revenue was down 1.9% year‑over‑year; the stock trades at a ~138.5 P/E with a ~$3.0B market cap.
• Corporate actions include a raised quarterly dividend to $0.215 (annualized $0.86, ~1.6% yield) despite a very high payout ratio (220.5%), and insiders sold 41,831 shares (~$1.94M) in the past 90 days while insiders collectively own about 1.4% of the stock.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) has earned an average recommendation of "Hold" from the six research firms that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, two have given a hold recommendation and three have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $59.75.

POWI has been the topic of several recent research reports. Northland Securities lowered shares of Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 price target on the stock. in a research report on Monday, April 6th. Zacks Research upgraded shares of Power Integrations from a "strong sell" rating to a "hold" rating in a research report on Thursday, February 26th. Weiss Ratings reiterated a "sell (d)" rating on shares of Power Integrations in a research report on Monday, December 29th. Susquehanna raised their target price on Power Integrations from $50.00 to $53.00 and gave the stock a "positive" rating in a research report on Thursday, January 22nd. Finally, Benchmark raised their target price on Power Integrations from $55.00 to $65.00 and gave the stock a "buy" rating in a research report on Monday, April 6th.

Power Integrations Stock Performance

Power Integrations stock opened at $54.03 on Wednesday. The firm has a market cap of $3.00 billion, a price-to-earnings ratio of 138.54, a price-to-earnings-growth ratio of 4.05 and a beta of 1.30. Power Integrations has a 1 year low of $30.86 and a 1 year high of $60.12. The firm's 50 day moving average price is $48.56 and its two-hundred day moving average price is $42.48.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.04. The firm had revenue of $103.20 million for the quarter, compared to analyst estimates of $103.02 million. Power Integrations had a net margin of 4.98% and a return on equity of 5.15%. The firm's quarterly revenue was down 1.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.30 earnings per share. As a group, equities analysts predict that Power Integrations will post 0.93 EPS for the current fiscal year.

Power Integrations Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were given a $0.215 dividend. This represents a $0.86 annualized dividend and a dividend yield of 1.6%. This is a boost from Power Integrations's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Friday, February 27th. Power Integrations's payout ratio is 220.51%.

Insiders Place Their Bets

In other news, CEO Jennifer A. Lloyd sold 3,322 shares of the firm's stock in a transaction on Monday, February 9th. The stock was sold at an average price of $46.57, for a total value of $154,705.54. Following the completion of the sale, the chief executive officer owned 76,307 shares of the company's stock, valued at $3,553,616.99. This trade represents a 4.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Sunil Gupta sold 1,272 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $45.97, for a total value of $58,473.84. Following the completion of the sale, the vice president directly owned 96,933 shares of the company's stock, valued at approximately $4,456,010.01. This trade represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 41,831 shares of company stock worth $1,936,896. 1.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Power Integrations

Institutional investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. boosted its stake in shares of Power Integrations by 576.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock valued at $32,000 after buying an additional 536 shares during the period. Hantz Financial Services Inc. boosted its stake in shares of Power Integrations by 77.6% during the 3rd quarter. Hantz Financial Services Inc. now owns 849 shares of the semiconductor company's stock valued at $34,000 after buying an additional 371 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Power Integrations during the 4th quarter valued at $36,000. UMB Bank n.a. boosted its stake in shares of Power Integrations by 61.7% during the 4th quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company's stock valued at $38,000 after buying an additional 410 shares during the period. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in shares of Power Integrations during the 4th quarter valued at $48,000.

About Power Integrations

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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