Power Integrations (NASDAQ:POWI) Sets New 52-Week Low - Time to Sell?

Key Points

• Power Integrations' stock reached a new 52-week low of $38.33 amid trading, indicating potential concerns among investors.
• Analysts have mixed views on the company, with a consensus rating of "Moderate Buy" and a target price averaging $61.67, while some firms downgraded their ratings, signaling caution.
• The company recently declared a quarterly dividend of $0.21 per share, reflecting a 2.2% dividend yield; however, its payout ratio of 144.83% raises questions about sustainability.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $38.33 and last traded at $39.04, with a volume of 670340 shares trading hands. The stock had previously closed at $38.60.

Analysts Set New Price Targets

A number of brokerages have issued reports on POWI. Weiss Ratings restated a "sell (d+)" rating on shares of Power Integrations in a research note on Saturday, September 27th. Susquehanna dropped their price objective on Power Integrations from $70.00 to $55.00 and set a "positive" rating on the stock in a report on Thursday, August 7th. Benchmark reaffirmed a "buy" rating and issued a $55.00 price target on shares of Power Integrations in a report on Tuesday, September 23rd. Finally, Wall Street Zen cut Power Integrations from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $61.67.

Power Integrations Stock Performance

The stock has a market capitalization of $2.19 billion, a P/E ratio of 67.31, a price-to-earnings-growth ratio of 2.52 and a beta of 1.37. The stock has a 50-day moving average price of $44.66 and a two-hundred day moving average price of $49.61.

Power Integrations (NASDAQ:POWI - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The semiconductor company reported $0.35 earnings per share for the quarter, topping 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 firm had revenue of $115.85 million for the quarter, compared to analyst estimates of $115.02 million. During the same period last year, the company earned $0.28 EPS. The business's quarterly revenue was up 9.1% compared to the same quarter last year. Equities analysts anticipate that Power Integrations, Inc. will post 0.93 earnings per share for the current fiscal year.

Power Integrations Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Friday, August 29th were given a dividend of $0.21 per share. The ex-dividend date was Friday, August 29th. This represents a $0.84 annualized dividend and a dividend yield of 2.2%. Power Integrations's payout ratio is currently 144.83%.

Insider Activity at Power Integrations

In other Power Integrations news, VP Doug Bailey sold 16,989 shares of Power Integrations stock in a transaction on Monday, August 18th. The stock was 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. The trade was a 25.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Gagan Jain sold 2,036 shares of Power Integrations stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $46.05, for a total value of $93,757.80. Following the transaction, the vice president owned 18,812 shares of the company's stock, valued at $866,292.60. The trade was 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 worth $1,697,214 over the last 90 days. 1.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC increased its position in Power Integrations by 16.1% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 6,057 shares of the semiconductor company's stock valued at $374,000 after acquiring an additional 840 shares during the last quarter. GAMMA Investing LLC increased its position in Power Integrations by 17,230.4% during the first quarter. GAMMA Investing LLC now owns 101,556 shares of the semiconductor company's stock valued at $5,129,000 after acquiring an additional 100,970 shares during the last quarter. Rhumbline Advisers increased its position in Power Integrations by 37.9% during the first quarter. Rhumbline Advisers now owns 252,300 shares of the semiconductor company's stock valued at $12,741,000 after acquiring an additional 69,324 shares during the last quarter. UMB Bank n.a. increased its position in Power Integrations by 91.6% during the first quarter. UMB Bank n.a. now owns 1,205 shares of the semiconductor company's stock valued at $61,000 after acquiring an additional 576 shares during the last quarter. Finally, Park Avenue Securities LLC increased its position in Power Integrations by 11.1% during the first quarter. Park Avenue Securities LLC now owns 4,093 shares of the semiconductor company's stock valued at $207,000 after acquiring an additional 410 shares during the last quarter.

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.

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