Power Integrations (NASDAQ:POWI) Hits New 1-Year Low - Time to Sell?

Key Points

• Power Integrations' stock (NASDAQ:POWI) reached a new 52-week low of $39.15 amid trading, signaling potential selling pressure.
• Analysts have mixed sentiments, with Susquehanna lowering its price target to $55.00 while Benchmark maintains a "buy" rating with a target of $55.00.
• Power Integrations recently announced a quarterly dividend of $0.21 per share, with a current dividend yield of 2.1%, even as insiders sell shares, indicating possible concerns.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) shares reached a new 52-week low during trading on Wednesday . The stock traded as low as $39.15 and last traded at $40.21, with a volume of 759926 shares changing hands. The stock had previously closed at $39.37.

Wall Street Analysts Forecast Growth

Several analysts have commented on POWI shares. Susquehanna reduced their price objective on Power Integrations from $70.00 to $55.00 and set a "positive" rating for the company in a research note on Thursday, August 7th. Wall Street Zen downgraded Power Integrations from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Finally, Benchmark reaffirmed a "buy" rating and set a $55.00 price objective on shares of Power Integrations in a research note on Tuesday, September 23rd. Three research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $61.67.

Power Integrations Stock Performance

The company has a 50-day simple moving average of $45.75 and a 200-day simple moving average of $50.15. The company has a market cap of $2.26 billion, a price-to-earnings ratio of 69.33, a PEG ratio of 2.57 and a beta of 1.38.

Power Integrations (NASDAQ:POWI - Get Free Report) last released its earnings results on Wednesday, August 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.01. Power Integrations had a return on equity of 5.86% and a net margin of 7.59%.The company had revenue of $115.85 million for the quarter, compared to analysts' expectations of $115.02 million. During the same quarter in the previous year, the firm posted $0.28 EPS. The firm's quarterly revenue was up 9.1% on a year-over-year basis. As a group, equities research analysts forecast that Power Integrations, Inc. will post 0.93 EPS for the current year.

Power Integrations Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Friday, August 29th were issued a $0.21 dividend. The ex-dividend date was Friday, August 29th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.1%. Power Integrations's dividend payout ratio is currently 144.83%.

Insider Buying and Selling

In related news, VP Doug Bailey sold 16,989 shares of the company's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $46.41, for a total value of $788,459.49. Following the sale, the vice president owned 50,798 shares in the company, valued at $2,357,535.18. This represents a 25.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Gagan Jain sold 2,036 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $46.05, for a total value of $93,757.80. Following the completion of the sale, the vice president owned 18,812 shares in the company, valued at approximately $866,292.60. This represents a 9.77% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 36,470 shares of company stock worth $1,697,214. Insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Power Integrations

Several hedge funds have recently made changes to their positions in POWI. Invesco Ltd. raised its position in shares of Power Integrations by 1,345.8% in the 1st quarter. Invesco Ltd. now owns 1,314,208 shares of the semiconductor company's stock worth $66,367,000 after buying an additional 1,223,310 shares during the period. American Century Companies Inc. purchased a new position in shares of Power Integrations in the 1st quarter worth $36,919,000. Norges Bank purchased a new position in shares of Power Integrations in the 2nd quarter worth $32,897,000. Squarepoint Ops LLC raised its position in shares of Power Integrations by 843.8% in the 2nd quarter. Squarepoint Ops LLC now owns 519,952 shares of the semiconductor company's stock worth $29,065,000 after buying an additional 464,858 shares during the period. Finally, ASR Vermogensbeheer N.V. purchased a new position in Power Integrations in the first quarter valued at about $14,215,000.

About Power Integrations

Power Integrations, Inc designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems.

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