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

Key Points

• Analysts remain cautious on Power Integrations, with the stock carrying an average "Hold" rating from seven firms and a consensus 12-month target price of $64.50. Sentiment is mixed, with three buy ratings, three hold ratings, and one sell rating.
• Insiders have been selling shares, including large transactions by directors Nicholas Brathwaite and Balu Balakrishnan. Over the last quarter, insiders sold 335,085 shares worth about $27.3 million, while insiders own just 1.40% of the stock.
• The company reported solid quarterly results, beating EPS and revenue estimates with $0.25 EPS on $108.31 million in revenue. Power Integrations also declared a quarterly dividend of $0.215 per share, though the payout ratio is very high at 286.67%.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) has received an average rating of "Hold" from the seven ratings firms that are presently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $64.50.

Several equities analysts recently commented on POWI shares. Susquehanna upped their price objective on Power Integrations from $70.00 to $85.00 and gave the company a "positive" rating in a research note on Friday, May 8th. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Power Integrations in a research report on Friday, May 8th. Zacks Research upgraded Power Integrations from a "strong sell" rating to a "hold" rating in a research report on Thursday, February 26th. Benchmark upped their price target on shares of Power Integrations from $55.00 to $65.00 and gave the stock a "buy" rating in a report on Monday, April 6th. Finally, Northland Securities cut 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 report on Monday, April 6th.

Insider Transactions at Power Integrations

In related news, Director Nicholas Brathwaite sold 6,895 shares of the stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $72.41, for a total value of $499,266.95. Following the transaction, the director owned 30,609 shares of the company's stock, valued at $2,216,397.69. This represents a 18.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Balu Balakrishnan sold 124,287 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $86.44, for a total value of $10,743,368.28. Following the completion of the transaction, the director directly owned 279,516 shares in the company, valued at approximately $24,161,363.04. This represents a 30.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 335,085 shares of company stock valued at $27,338,789. 1.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Power Integrations

Large investors have recently made changes to their positions in the business. Geneos Wealth Management Inc. lifted its holdings in shares of Power Integrations by 576.3% during the first quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 536 shares during the last quarter. Hantz Financial Services Inc. grew its position in Power Integrations by 77.6% in the 3rd quarter. Hantz Financial Services Inc. now owns 849 shares of the semiconductor company's stock worth $34,000 after purchasing an additional 371 shares during the period. Kestra Advisory Services LLC bought a new stake in Power Integrations in the 4th quarter worth approximately $36,000. UMB Bank n.a. grew its position in Power Integrations by 61.7% in the 4th quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company's stock worth $38,000 after purchasing an additional 410 shares during the period. Finally, EverSource Wealth Advisors LLC grew its position in shares of Power Integrations by 125.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 814 shares of the semiconductor company's stock valued at $42,000 after acquiring an additional 453 shares during the period.

Power Integrations Trading Up 1.0%

Power Integrations stock opened at $84.99 on Thursday. Power Integrations has a 12 month low of $30.86 and a 12 month high of $89.00. The business's 50 day simple moving average is $66.00 and its 200 day simple moving average is $50.16. The company has a market cap of $4.74 billion, a price-to-earnings ratio of 283.31, a PEG ratio of 3.66 and a beta of 1.57.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. Power Integrations had a return on equity of 5.34% and a net margin of 3.72%.The business had revenue of $108.31 million for the quarter, compared to the consensus estimate of $106.75 million. During the same quarter in the prior year, the business earned $0.31 earnings per share. Power Integrations's revenue for the quarter was up 2.6% on a year-over-year basis. As a group, equities research analysts forecast that Power Integrations will post 0.89 earnings per share for the current fiscal year.

Power Integrations Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be issued a $0.215 dividend. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.86 annualized dividend and a dividend yield of 1.0%. Power Integrations's dividend payout ratio is presently 286.67%.

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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