Power Integrations (NASDAQ:POWI) Reaches New 52-Week Low - Time to Sell?

Key Points

• Power Integrations' stock has reached a new 52-week low at $39.53, with a recent trading volume of nearly 193,000 shares.
• Analysts have provided mixed ratings, with a consensus rating of "Buy" and a target price of $61.67, while some firms have revised their price targets downwards.
• The company announced a $0.21 quarterly dividend to stockholders, reflecting a dividend yield of 2.1%, despite a high dividend payout ratio of 144.83%.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The stock traded as low as $39.53 and last traded at $39.61, with a volume of 192786 shares trading hands. The stock had previously closed at $40.81.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on POWI shares. Benchmark reaffirmed a "buy" rating and set a $55.00 price objective on shares of Power Integrations in a research report on Tuesday. Susquehanna cut their price objective on Power Integrations from $70.00 to $55.00 and set a "positive" rating for the company in a research report on Thursday, August 7th. Finally, Wall Street Zen lowered Power Integrations from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $61.67.

Power Integrations Trading Down 3.1%

The company has a fifty day simple moving average of $46.90 and a two-hundred day simple moving average of $50.67. The company has a market cap of $2.22 billion, a PE ratio of 68.10, a P/E/G ratio of 2.72 and a beta of 1.38.

Power Integrations (NASDAQ:POWI - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The semiconductor company reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.34 by $0.01. Power Integrations had a return on equity of 5.86% and a net margin of 7.59%.The business had revenue of $115.85 million for the quarter, compared to the consensus estimate of $115.02 million. During the same quarter in the prior year, the business posted $0.28 EPS. The business's revenue for the quarter was up 9.1% on a year-over-year basis. On average, research analysts anticipate that Power Integrations, Inc. will post 0.93 EPS for the current fiscal year.

Power Integrations Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Friday, August 29th will be issued a $0.21 dividend. The ex-dividend date is 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 presently 144.83%.

Insider Transactions at Power Integrations

In other news, VP Gagan Jain sold 2,036 shares of the stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $46.05, for a total value of $93,757.80. Following the transaction, 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 transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Doug Bailey sold 16,989 shares of the company's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $46.41, for a total value of $788,459.49. Following the completion of the sale, the vice president directly owned 50,798 shares of the company's stock, valued at approximately $2,357,535.18. This trade represents a 25.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 36,014 shares of company stock worth $1,678,322. Company insiders own 1.40% of the company's stock.

Institutional Trading of Power Integrations

Large investors have recently made changes to their positions in the company. Hantz Financial Services Inc. lifted its position in Power Integrations by 475.9% during the 2nd quarter. Hantz Financial Services Inc. now owns 478 shares of the semiconductor company's stock worth $27,000 after acquiring an additional 395 shares during the period. Allworth Financial LP lifted its position in Power Integrations by 257.8% during the 1st quarter. Allworth Financial LP now owns 594 shares of the semiconductor company's stock worth $30,000 after acquiring an additional 428 shares during the period. Bayforest Capital Ltd lifted its position in Power Integrations by 54.3% during the 1st quarter. Bayforest Capital Ltd now owns 631 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 222 shares during the period. Geneos Wealth Management Inc. lifted its position in Power Integrations by 576.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 536 shares during the period. Finally, Parkside Financial Bank & Trust raised its stake in shares of Power Integrations by 125.9% during the 2nd quarter. Parkside Financial Bank & Trust now owns 585 shares of the semiconductor company's stock worth $33,000 after buying an additional 326 shares in the last quarter.

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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