Power Integrations (NASDAQ:POWI) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Power Integrations experienced a significant trading volume surge, with approximately 1.43 million shares traded, marking a 136% increase from the previous session.
• Analysts have mixed ratings on the stock; while Benchmark maintains a "buy" rating with a $55 target price, Wall Street Zen downgraded it to a "hold."
• The company recently announced a quarterly dividend of $0.21 per share, reflecting an annualized dividend yield of 1.8%.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) shares saw unusually-strong trading volume on Tuesday . Approximately 1,431,209 shares traded hands during trading, an increase of 136% from the previous session's volume of 607,182 shares.The stock last traded at $44.07 and had previously closed at $43.15.

Wall Street Analysts Forecast Growth

POWI has been the subject of several analyst reports. Wall Street Zen cut shares of Power Integrations from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Benchmark reiterated a "buy" rating and set a $55.00 target price on shares of Power Integrations in a report on Tuesday, September 23rd. Susquehanna reduced their price objective on shares of Power Integrations from $70.00 to $55.00 and set a "positive" rating on the stock in a report on Thursday, August 7th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Power Integrations in a report on Wednesday, October 8th. Three investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $61.67.

Power Integrations Price Performance

The company has a market cap of $2.63 billion, a price-to-earnings ratio of 80.73, a PEG ratio of 2.27 and a beta of 1.37. The business's 50-day simple moving average is $43.57 and its 200-day simple moving average is $49.04.

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

Power Integrations Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Friday, August 29th were issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, August 29th. Power Integrations's dividend payout ratio is 144.83%.

Insider Activity

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

Institutional Trading of Power Integrations

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