Power Integrations (NASDAQ:POWI) Sees Unusually-High Trading Volume - Here's What Happened

Key Points

• Power Integrations saw unusually-strong trading volume of about 617,673 shares on Wednesday (down 32% from the prior session) as the stock jumped to roughly $74.70 from a previous close of $67.37.
• Analysts are mixed — three Buy, two Hold and one Sell — leaving a consensus rating of "Hold" and a consensus target price of $56.50, significantly below the current share price.
• The company beat quarterly EPS estimates ($0.23 vs. $0.19) on $103.2M revenue (down 1.9% YoY) and raised its quarterly dividend to $0.215 (annualized $0.86, 1.2% yield), though the dividend carries a high payout ratio of 220%.

Shares of Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) saw unusually-strong trading volume on Wednesday . Approximately 617,673 shares changed hands during trading, a decline of 32% from the previous session's volume of 906,218 shares.The stock last traded at $74.6960 and had previously closed at $67.37.

Analyst Ratings Changes

A number of research analysts have recently weighed in on POWI shares. Stifel Nicolaus raised their price target on shares of Power Integrations from $56.00 to $62.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Northland Securities downgraded shares of Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 price target on the stock. in a report on Monday, April 6th. Susquehanna raised their price target on shares of Power Integrations from $50.00 to $53.00 and gave the company a "positive" rating in a report on Thursday, January 22nd. Benchmark raised their price target on shares of Power Integrations from $55.00 to $65.00 and gave the company a "buy" rating in a report on Monday, April 6th. Finally, Zacks Research upgraded shares of Power Integrations from a "strong sell" rating to a "hold" rating in a report on Thursday, February 26th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Power Integrations has a consensus rating of "Hold" and a consensus target price of $56.50.

Power Integrations Stock Performance

The company has a market capitalization of $3.94 billion, a price-to-earnings ratio of 182.21, a price-to-earnings-growth ratio of 4.69 and a beta of 1.30. The firm's 50-day simple moving average is $49.87 and its 200-day simple moving average is $43.21.

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

Power Integrations Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were issued a $0.215 dividend. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, February 27th. This is a boost from Power Integrations's previous quarterly dividend of $0.21. Power Integrations's payout ratio is currently 220.51%.

Insider Buying and Selling

In other news, Director Balu Balakrishnan sold 10,080 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $44.75, for a total value of $451,080.00. Following the completion of the transaction, the director directly owned 575,331 shares of the company's stock, valued at approximately $25,746,062.25. This represents a 1.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Gagan Jain sold 3,481 shares of the stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $48.22, for a total value of $167,853.82. Following the completion of the transaction, the vice president directly owned 30,769 shares of the company's stock, valued at approximately $1,483,681.18. The trade was a 10.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 41,831 shares of company stock valued at $1,936,896. 1.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Power Integrations

Hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. grew its stake in Power Integrations by 576.3% during the first quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock worth $32,000 after buying an additional 536 shares during the last quarter. Hantz Financial Services Inc. grew its stake in Power Integrations by 77.6% during the third quarter. Hantz Financial Services Inc. now owns 849 shares of the semiconductor company's stock worth $34,000 after buying an additional 371 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in Power Integrations during the fourth quarter worth about $36,000. UMB Bank n.a. grew its stake in Power Integrations by 61.7% during the fourth quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company's stock worth $38,000 after buying an additional 410 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. bought a new stake in Power Integrations during the fourth quarter worth about $48,000.

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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