Power Integrations (NASDAQ:POWI) Sets New 1-Year High - Still a Buy?

Key Points

• Power Integrations hit a new 52-week high, trading as high as $60.16 (last $59.82) on Monday with ~72,536 shares changing hands and a market cap of $3.37 billion; its 50-day/200-day moving averages are $49.12 and $42.84.
• Analyst views are mixed—three Buys, two Holds and one Sell—with an average rating of "Hold" and an average price target of $56.50, though recent target increases include Benchmark $65 and Stifel $62 while Northland cut its target to $46.
• The company modestly beat quarterly EPS ($0.23 vs. $0.19) and revenue ($103.20M vs. $103.02M) but reported a 1.9% YoY revenue decline; it raised the quarterly dividend to $0.215 (annualized $0.86, 1.4% yield) despite a high payout ratio (~220%), and insiders sold roughly 41,831 shares last quarter.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) reached a new 52-week high during trading on Monday . The company traded as high as $60.16 and last traded at $59.8210, with a volume of 72536 shares changing hands. The stock had previously closed at $58.65.

Analyst Upgrades and Downgrades

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

Power Integrations Price Performance

The company's 50-day moving average price is $49.12 and its 200-day moving average price is $42.84. The company has a market cap of $3.37 billion, a P/E ratio of 155.70, a P/E/G ratio of 4.45 and a beta of 1.30.

Power Integrations (NASDAQ:POWI - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.23 EPS for the quarter, beating analysts' consensus estimates of $0.19 by $0.04. The company had revenue of $103.20 million for the quarter, compared to analyst estimates of $103.02 million. Power Integrations had a return on equity of 5.15% and a net margin of 4.98%.The company's quarterly revenue was down 1.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.30 earnings per share. On average, equities research analysts predict that Power Integrations, Inc. will post 0.93 EPS for the current year.

Power Integrations Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were paid a dividend of $0.215 per share. The ex-dividend date of this dividend was Friday, February 27th. This represents a $0.86 annualized dividend and a dividend yield of 1.4%. This is an increase from Power Integrations's previous quarterly dividend of $0.21. Power Integrations's dividend payout ratio (DPR) is 220.51%.

Insider Buying and Selling at Power Integrations

In other Power Integrations news, VP Sunil Gupta sold 2,168 shares of the business's stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $45.58, for a total transaction of $98,817.44. Following the sale, the vice president directly owned 95,766 shares of the company's stock, valued at $4,365,014.28. The trade was a 2.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Balu Balakrishnan sold 10,080 shares of the firm's stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $44.75, for a total value of $451,080.00. Following the completion of the transaction, the director owned 575,331 shares of the company's stock, valued at approximately $25,746,062.25. This represents a 1.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 41,831 shares of company stock valued at $1,936,896 over the last quarter. Insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Power Integrations

Large investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. boosted its holdings in shares of 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 buying an additional 536 shares during the period. Hantz Financial Services Inc. boosted its holdings in shares of Power Integrations by 77.6% during the 3rd 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 period. Kestra Advisory Services LLC bought a new stake in shares of Power Integrations during the 4th quarter worth about $36,000. UMB Bank n.a. boosted its holdings in shares of Power Integrations by 61.7% during the 4th 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 period. Finally, Eurizon Capital SGR S.p.A. bought a new stake in shares of Power Integrations during the 4th quarter worth about $48,000.

Power Integrations Company Profile

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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