Power Integrations (NASDAQ:POWI) Sets New 1-Year High - Time to Buy?

Key Points

• Power Integrations hit a new 52-week high during trading, reaching as high as $84.90 after previously closing at $70.85, reflecting strong recent momentum in the stock.
• Recent earnings were better than expected, with the company posting $0.25 EPS versus $0.23 consensus and revenue of $108.31 million, slightly above estimates. Analysts currently have a mixed view, with an average rating of Hold and an average price target of $64.50.
• The company also declared a quarterly dividend of $0.215 per share, implying a 1.0% annual yield, though the payout ratio is high at 286.67%. Insiders have sold shares in recent months, even as some hedge funds increased their stakes.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) reached a new 52-week high during trading on Tuesday . The stock traded as high as $84.90 and last traded at $83.29, with a volume of 466870 shares changing hands. The stock had previously closed at $70.85.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on POWI shares. Zacks Research raised shares of Power Integrations from a "strong sell" rating to a "hold" rating in a report on Thursday, February 26th. Weiss Ratings restated a "sell (d+)" rating on shares of Power Integrations in a research report on Friday, May 8th. Susquehanna increased their price target on shares of Power Integrations from $70.00 to $85.00 and gave the company a "positive" rating in a research report on Friday, May 8th. Northland Securities cut 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 research report on Monday, April 6th. Finally, Benchmark increased their price target 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. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $64.50.

Power Integrations Price Performance

The business has a 50 day moving average of $60.70 and a 200 day moving average of $47.77. The company has a market cap of $4.61 billion, a PE ratio of 275.88, a price-to-earnings-growth ratio of 4.31 and a beta of 1.54.

Power Integrations (NASDAQ:POWI - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. Power Integrations had a return on equity of 5.34% and a net margin of 3.72%.The company had revenue of $108.31 million during the quarter, compared to analyst estimates of $106.75 million. During the same quarter last year, the firm posted $0.31 earnings per share. The firm's revenue was up 2.6% on a year-over-year basis. Sell-side analysts forecast that Power Integrations, Inc. will post 0.64 EPS for the current fiscal year.

Power Integrations Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th will be given a dividend of $0.215 per share. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.86 annualized dividend and a yield of 1.0%. Power Integrations's dividend payout ratio (DPR) is currently 286.67%.

Insider Buying and Selling at Power Integrations

In other Power Integrations news, Director Nicholas Brathwaite sold 6,895 shares of the firm's stock in a transaction 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 completion of the transaction, the director owned 30,609 shares of the company's stock, valued at approximately $2,216,397.69. This trade represents a 18.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Gagan Jain sold 3,481 shares of the firm's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $48.22, for a total value of $167,853.82. Following the transaction, the vice president directly owned 30,769 shares of the company's stock, valued at $1,483,681.18. This represents a 10.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 10,689 shares of company stock valued at $683,375 in the last three months. Insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Power Integrations

Large investors have recently modified their holdings of the stock. State of Alaska Department of Revenue raised its position in shares of Power Integrations by 248.4% in the 4th quarter. State of Alaska Department of Revenue now owns 30,924 shares of the semiconductor company's stock worth $1,098,000 after purchasing an additional 22,049 shares during the last quarter. UBS Group AG raised its position in shares of Power Integrations by 149.5% in the 4th quarter. UBS Group AG now owns 276,073 shares of the semiconductor company's stock worth $9,812,000 after purchasing an additional 165,405 shares during the last quarter. Quantbot Technologies LP raised its position in shares of Power Integrations by 48,387.7% in the 3rd quarter. Quantbot Technologies LP now owns 130,432 shares of the semiconductor company's stock worth $5,245,000 after purchasing an additional 130,163 shares during the last quarter. Y Intercept Hong Kong Ltd purchased a new position in shares of Power Integrations in the 3rd quarter worth about $3,997,000. Finally, SG Americas Securities LLC raised its position in shares of Power Integrations by 108.7% in the 4th quarter. SG Americas Securities LLC now owns 44,351 shares of the semiconductor company's stock worth $1,576,000 after purchasing an additional 23,096 shares during the last quarter.

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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