Power Integrations, Inc. (NASDAQ:POWI) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Power Integrations received an average analyst rating of "Hold" from seven covering analysts, with a mixed breakdown of one sell, three hold, and three buy ratings. The average 1-year price target is $64.50.
• The company beat first-quarter earnings expectations, reporting EPS of $0.25 on revenue of $108.3 million, both slightly ahead of estimates. It also forecast second-quarter revenue of $115 million to $120 million, roughly in line with Wall Street expectations.
• Recent insider activity showed stock sales by VP Gagan Jain and Director Balu Balakrishnan, while institutional investors including Goldman Sachs and UBS AM increased their holdings. The stock was trading near $73.28, above the consensus price target.

Shares of Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) have received an average rating of "Hold" from the seven analysts that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $64.50.

Several equities research analysts recently commented on the stock. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Power Integrations in a research report on Friday. Northland Securities cut shares of Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 price target for the company. in a research report on Monday, April 6th. Susquehanna raised their price target on shares of Power Integrations from $70.00 to $85.00 and gave the company a "positive" rating in a research note on Friday. Zacks Research upgraded shares of Power Integrations from a "strong sell" rating to a "hold" rating in a report on Thursday, February 26th. Finally, Benchmark increased their price objective on Power Integrations from $55.00 to $65.00 and gave the company a "buy" rating in a report on Monday, April 6th.

Insider Buying and Selling

In other Power Integrations news, VP Gagan Jain sold 3,481 shares of the stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $48.22, for a total transaction of $167,853.82. Following the completion of the sale, the vice president owned 30,769 shares of the company's stock, valued at approximately $1,483,681.18. This represents a 10.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Balu Balakrishnan sold 6,368 shares of the firm's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $46.53, for a total transaction of $296,303.04. Following the transaction, the director owned 581,251 shares of the company's stock, valued at approximately $27,045,609.03. The trade was a 1.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 21,152 shares of company stock valued at $994,599 over the last three months. 1.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Power Integrations

Large investors have recently modified their holdings of the company. Baird Financial Group Inc. boosted its position in Power Integrations by 5.4% during the first quarter. Baird Financial Group Inc. now owns 5,053 shares of the semiconductor company's stock valued at $255,000 after acquiring an additional 261 shares during the last quarter. Royal Bank of Canada grew its stake in Power Integrations by 5.0% in the first quarter. Royal Bank of Canada now owns 75,792 shares of the semiconductor company's stock valued at $3,827,000 after acquiring an additional 3,622 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Power Integrations by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,680 shares of the semiconductor company's stock valued at $1,701,000 after acquiring an additional 1,461 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Power Integrations by 14.9% during the first quarter. Goldman Sachs Group Inc. now owns 572,360 shares of the semiconductor company's stock valued at $28,904,000 after acquiring an additional 74,107 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Power Integrations by 15.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 174,754 shares of the semiconductor company's stock worth $8,825,000 after purchasing an additional 23,389 shares during the period.

More Power Integrations News

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Susquehanna raised its price target on Power Integrations to $85 from $70 and reiterated a positive rating, signaling more upside optimism after the latest results. Benzinga The Fly
• Positive Sentiment: Power Integrations reported first-quarter earnings of $0.25 per share, topping estimates, and revenue of $108.3 million versus consensus of $106.8 million, suggesting continued demand resilience. MarketBeat
• Positive Sentiment: The company’s second-quarter revenue guidance of $115 million to $120 million brackets Wall Street’s forecast, which investors may view as a constructive outlook following the earnings release. MarketBeat
• Positive Sentiment: Power Integrations declared a quarterly dividend of $0.215 per share, reinforcing capital return to shareholders. MSN
• Neutral Sentiment: The company appointed semiconductor veteran Mike Balow as senior vice president of worldwide sales, a leadership move that could support future growth but does not have an immediate financial impact. TipRanks
• Neutral Sentiment: The company also noted improving inventory levels, which is encouraging for operations but is still early evidence rather than a confirmed long-term trend. MSN

Power Integrations Stock Up 2.0%

Shares of POWI opened at $73.28 on Friday. The stock has a market cap of $4.08 billion, a PE ratio of 244.27, a PEG ratio of 5.56 and a beta of 1.54. Power Integrations has a 12-month low of $30.86 and a 12-month high of $81.59. The business has a 50-day simple moving average of $55.06 and a two-hundred day simple moving average of $45.36.

Power Integrations (NASDAQ:POWI - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. The firm had revenue of $108.31 million for the quarter, compared to analyst estimates of $106.75 million. Power Integrations had a return on equity of 5.32% and a net margin of 3.72%.The business's revenue for the quarter was up 2.6% on a year-over-year basis. During the same period last year, the firm posted $0.31 earnings per share. On average, equities research analysts expect that Power Integrations will post 0.64 EPS for the current year.

Power Integrations Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be paid 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 1.2%. Power Integrations's dividend payout ratio is presently 286.67%.

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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