Power Integrations (NASDAQ:POWI) Price Target Lowered to $80.00 at Stifel Nicolaus

Key Points

• Stifel Nicolaus cut Power Integrations’ price target from $95 to $80 while maintaining a Buy rating, implying roughly 27% upside from the prior close. The broader analyst consensus is Hold, with an average target of $72.67.
• Power Integrations beat second-quarter expectations, reporting $0.37 EPS versus $0.32 expected and revenue of $118.94 million versus $117.44 million forecast; revenue rose 2.6% year over year.
• Shares traded at $62.93, while insiders sold approximately $27.3 million of stock over the past 90 days. The company’s valuation remains elevated, with a P/E ratio above 200.

Power Integrations (NASDAQ:POWI - Get Free Report) had its price objective dropped by analysts at Stifel Nicolaus from $95.00 to $80.00 in a report released on Thursday,Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. Stifel Nicolaus' price target would suggest a potential upside of 27.12% from the stock's previous close.

A number of other equities analysts also recently issued reports on the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Power Integrations in a research report on Friday, May 8th. Needham & Company LLC reduced their price objective on shares of Power Integrations from $90.00 to $80.00 and set a "buy" rating on the stock in a research note on Thursday. Zacks Research cut shares of Power Integrations from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 20th. Weiss Ratings reissued a "sell (d+)" rating on shares of Power Integrations in a research note on Friday, May 8th. Finally, Susquehanna boosted their target price on shares of Power Integrations from $70.00 to $85.00 and gave the company a "positive" rating in a report on Friday, May 8th. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $72.67.

Power Integrations Trading Up 1.6%

NASDAQ:POWI traded up $0.98 during mid-day trading on Thursday, hitting $62.93. 72,297 shares of the company's stock were exchanged, compared to its average volume of 1,016,429. Power Integrations has a fifty-two week low of $30.86 and a fifty-two week high of $91.18. The company has a 50 day simple moving average of $74.56 and a 200-day simple moving average of $61.89. The firm has a market capitalization of $3.51 billion, a P/E ratio of 207.75 and a beta of 1.58.

Power Integrations (NASDAQ:POWI - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.05. The firm had revenue of $118.94 million during the quarter, compared to the consensus estimate of $117.44 million. Power Integrations had a net margin of 3.72% and a return on equity of 5.34%. The company's revenue for the quarter was up 2.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.35 earnings per share. As a group, analysts expect that Power Integrations will post 0.76 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Nicholas Brathwaite sold 6,895 shares of Power Integrations stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $72.41, for a total transaction of $499,266.95. Following the transaction, the director owned 30,609 shares of the company's stock, valued at $2,216,397.69. The trade was a 18.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Balu Balakrishnan sold 124,287 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $86.44, for a total transaction of $10,743,368.28. Following the transaction, the director owned 279,516 shares in the company, valued at approximately $24,161,363.04. This trade represents a 30.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 334,772 shares of company stock worth $27,322,535 in the last ninety days. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Power Integrations

A number of large investors have recently bought and sold shares of POWI. Harbor Investment Advisory LLC bought a new position in shares of Power Integrations in the second quarter worth $33,000. Geneos Wealth Management Inc. boosted its stake in Power Integrations by 576.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock worth $32,000 after purchasing an additional 536 shares during the period. EverSource Wealth Advisors LLC grew its holdings in 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 buying an additional 453 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in Power Integrations during the 4th quarter valued at about $36,000. Finally, UMB Bank n.a. increased its position in shares of Power Integrations by 61.7% during the fourth 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.

Trending Headlines about Power Integrations

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

• Positive Sentiment: Q2 results exceeded expectations. Power Integrations reported earnings of $0.37 per share, above the $0.32 consensus estimate, while revenue of $118.94 million topped the $117.44 million forecast. Revenue increased 2.6% year over year, and earnings rose from $0.35 per share in the prior-year quarter. Power Integrations Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Inventory conditions improved. Reports on the earnings release highlighted better inventory levels, which could support operating performance and future sales if end-market demand strengthens. Power Integrations Q2 Beats on Revenue, Inventory Levels Improve
• Positive Sentiment: New high-voltage GaN technology adds a potential growth catalyst. The company demonstrated what it called the world’s first 2,200-volt gallium-nitride technology for next-generation high-voltage power systems. Power Integrations Demonstrates 2200 V GaN Technology
• Positive Sentiment: Power Integrations declared a quarterly dividend of $0.215 per share, payable September 30 to shareholders of record August 31. The annualized yield is approximately 1.4%.
• Neutral Sentiment: Third-quarter revenue guidance is $122 million to $130 million, compared with the $125.6 million analyst consensus. The midpoint is broadly in line with expectations, but the range signals limited near-term growth visibility.
• Negative Sentiment: Needham lowered its price target from $90 to $80, although it maintained a Buy rating. The reduction may weigh on sentiment, particularly given Power Integrations’ elevated valuation and modest revenue growth. Power Integrations Price Target Lowered at Needham

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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