Power Integrations, Inc. (NASDAQ:POWI) to Issue $0.22 Quarterly Dividend

Key Points

• Power Integrations declared a quarterly dividend of $0.215 per share, payable June 30 to holders of record on May 29 (ex-dividend date May 29), reflecting an annualized yield of about 1.2%.
• The company has raised its dividend for 12 consecutive years and currently has a payout ratio of 43%, though analysts' $1.05 EPS forecast for next year would imply a higher future payout ratio (~81.9%) against the $0.86 annualized dividend.
• Shares are trading lower (down ~8.2%), the company recently beat quarterly EPS ($0.23 vs. $0.19) with roughly flat revenue, and there has been notable insider selling alongside large institutional position changes (significant buys by firms like Price T. Rowe and Snyder Capital).

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Investors of record on Friday, May 29th will be given a dividend of 0.215 per share by the semiconductor company on Tuesday, June 30th. This represents a c) annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, May 29th.

Power Integrations has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 12 years. Power Integrations has a payout ratio of 43.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Power Integrations to earn $1.05 per share next year, which means the company should continue to be able to cover its $0.86 annual dividend with an expected future payout ratio of 81.9%.

Power Integrations Trading Down 8.2%

POWI opened at $71.83 on Friday. The company has a 50 day moving average of $55.06 and a 200 day moving average of $45.36. The company has a market cap of $4.00 billion, a PE ratio of 184.18, a price-to-earnings-growth ratio of 5.94 and a beta of 1.54. Power Integrations has a 12 month low of $30.86 and a 12 month high of $78.95.

Power Integrations (NASDAQ:POWI - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.19 by $0.04. The company had revenue of $103.20 million during the quarter, compared to the consensus estimate of $103.02 million. Power Integrations had a net margin of 4.98% and a return on equity of 5.15%. Power Integrations's revenue for the quarter was down 1.9% on a year-over-year basis. During the same period last year, the firm earned $0.30 EPS. Research analysts forecast that Power Integrations will post 0.64 earnings per share for the current fiscal year.

Insider Activity

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 value of $167,853.82. Following the sale, the vice president directly owned 30,769 shares in the company, valued at $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 is available through this hyperlink. Also, CEO Jennifer A. Lloyd sold 3,322 shares of the stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $46.57, for a total transaction of $154,705.54. Following the completion of the sale, the chief executive officer owned 76,307 shares in the company, valued at $3,553,616.99. This represents a 4.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 21,152 shares of company stock valued at $994,599. 1.40% of the stock is owned by company insiders.

Institutional Trading of Power Integrations

Several institutional investors and hedge funds have recently made changes to their positions in POWI. Snyder Capital Management L P raised its position in shares of Power Integrations by 148.8% during the 4th quarter. Snyder Capital Management L P now owns 2,064,707 shares of the semiconductor company's stock valued at $73,380,000 after buying an additional 1,234,981 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Power Integrations by 1,885.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 943,365 shares of the semiconductor company's stock valued at $33,528,000 after buying an additional 895,857 shares in the last quarter. M&T Bank Corp raised its position in shares of Power Integrations by 3,635.7% during the 4th quarter. M&T Bank Corp now owns 748,555 shares of the semiconductor company's stock valued at $26,604,000 after buying an additional 728,517 shares in the last quarter. Wellington Management Group LLP raised its position in shares of Power Integrations by 35.7% during the 3rd quarter. Wellington Management Group LLP now owns 2,261,281 shares of the semiconductor company's stock valued at $90,926,000 after buying an additional 595,404 shares in the last quarter. Finally, State Street Corp raised its position in shares of Power Integrations by 18.0% during the 4th quarter. State Street Corp now owns 3,400,970 shares of the semiconductor company's stock valued at $120,870,000 after buying an additional 518,284 shares in the last quarter.

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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