Power Integrations (NASDAQ:POWI) Reaches New 1-Year Low Following Analyst Downgrade

Key Points

• Power Integrations (NASDAQ:POWI) has reached a new 52-week low of $39.53 after Susquehanna downgraded their price target from $70.00 to $55.00.
• The company announced a $0.21 quarterly dividend, which reflects an annualized yield of 2.0%, despite a high dividend payout ratio of 129.23%.
• Power Integrations recently reported quarterly earnings of $0.35 EPS, exceeding expectations and showing a 9.1% increase in revenue year-over-year.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) shares reached a new 52-week low on Thursday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The stock traded as low as $39.53 and last traded at $41.84, with a volume of 241035 shares traded. The stock had previously closed at $47.49.

Several other research firms also recently commented on POWI. Susquehanna decreased their price objective on Power Integrations from $70.00 to $55.00 and set a "positive" rating on the stock in a research note on Thursday. Benchmark restated a "buy" rating and set a $70.00 price objective on shares of Power Integrations in a research report on Wednesday, July 16th. Finally, Stifel Nicolaus lifted their target price on shares of Power Integrations from $70.00 to $75.00 and gave the company a "buy" rating in a research note on Tuesday, May 13th. One analyst has rated the stock with a hold rating, four have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, Power Integrations presently has a consensus rating of "Buy" and a consensus price target of $70.00.

Institutional Trading of Power Integrations

A number of hedge funds and other institutional investors have recently bought and sold shares of POWI. Capital International Investors increased its holdings in Power Integrations by 5.8% during the 4th quarter. Capital International Investors now owns 1,503,132 shares of the semiconductor company's stock worth $92,743,000 after purchasing an additional 82,681 shares during the period. Invesco Ltd. increased its stake in shares of Power Integrations by 1,345.8% during the first quarter. Invesco Ltd. now owns 1,314,208 shares of the semiconductor company's stock valued at $66,367,000 after buying an additional 1,223,310 shares during the period. Northern Trust Corp increased its stake in shares of Power Integrations by 7.9% during the first quarter. Northern Trust Corp now owns 1,075,076 shares of the semiconductor company's stock valued at $54,291,000 after buying an additional 79,036 shares during the period. Snyder Capital Management L P increased its stake in shares of Power Integrations by 22.3% during the fourth quarter. Snyder Capital Management L P now owns 882,518 shares of the semiconductor company's stock valued at $54,451,000 after buying an additional 160,784 shares during the period. Finally, Stephens Investment Management Group LLC increased its stake in shares of Power Integrations by 1.5% during the second quarter. Stephens Investment Management Group LLC now owns 749,969 shares of the semiconductor company's stock valued at $41,923,000 after buying an additional 10,993 shares during the period.

Power Integrations Trading Up 2.4%

The firm has a market cap of $2.48 billion, a PE ratio of 76.17, a P/E/G ratio of 1.77 and a beta of 1.31. The business's 50-day simple moving average is $54.04 and its 200 day simple moving average is $54.26.

Power Integrations (NASDAQ:POWI - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The semiconductor company reported $0.35 earnings per share (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 period last year, the business posted $0.28 EPS. The business's revenue was up 9.1% compared to the same quarter last year. Analysts expect that Power Integrations, Inc. will post 0.93 earnings per share for the current year.

Power Integrations Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, August 29th will be given a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, August 29th. Power Integrations's payout ratio is currently 129.23%.

Power Integrations Company Profile

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.