Power Integrations (NASDAQ:POWI) Stock Price Down 4% - Should You Sell?

Key Points

• Power Integrations' stock fell 4% during trading, closing at $43.76 after previously trading at a low of $44.00, with a significant decline in average session volume.
• Wall Street analysts have adjusted ratings on Power Integrations, with one firm lowering the stock from a "buy" to a "hold," while another reduced its price target from $70 to $55, yet the average rating remains "Buy" with a price target of $61.67.
• The company recently reported quarterly earnings of $0.35 per share, exceeding analyst expectations, along with a year-over-year revenue increase of 9.1% to $115.85 million.

Shares of Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) fell 4% during mid-day trading on Friday . The stock traded as low as $44.00 and last traded at $43.76. 144,616 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 551,334 shares. The stock had previously closed at $45.57.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on POWI shares. Benchmark decreased their price target on shares of Power Integrations from $70.00 to $55.00 and set a "buy" rating for the company in a research note on Monday, August 11th. Wall Street Zen cut shares of Power Integrations from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Finally, Susquehanna decreased their target price on Power Integrations from $70.00 to $55.00 and set a "positive" rating for the company in a research report on Thursday, August 7th. Three investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $61.67.

Power Integrations Trading Up 0.2%

The company's fifty day moving average is $47.41 and its 200 day moving average is $50.80. The company has a market cap of $2.42 billion, a P/E ratio of 58.04, a price-to-earnings-growth ratio of 2.81 and a beta of 1.38.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The semiconductor company reported $0.35 EPS for the quarter, beating 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 company had revenue of $115.85 million during the quarter, compared to analyst estimates of $115.02 million. During the same period in the prior year, the business posted $0.28 EPS. The firm's revenue was up 9.1% compared to the same quarter last year. Analysts anticipate 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 will be paid on Tuesday, September 30th. Stockholders of record on Friday, August 29th will be paid a dividend of $0.21 per share. The ex-dividend date of this dividend is Friday, August 29th. This represents a $0.84 annualized dividend and a dividend yield of 2.0%. Power Integrations's payout ratio is 144.83%.

Insider Buying and Selling

In related news, 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 sale, the vice president owned 18,812 shares in the company, valued at $866,292.60. The trade was a 9.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Doug Bailey sold 16,989 shares of the business's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $46.41, for a total transaction of $788,459.49. Following the transaction, the vice president directly 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 disclosure for this sale can be found here. In the last 90 days, insiders have sold 36,014 shares of company stock valued at $1,678,322. 1.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Hantz Financial Services Inc. increased its stake in shares of Power Integrations by 475.9% in the 2nd quarter. Hantz Financial Services Inc. now owns 478 shares of the semiconductor company's stock worth $27,000 after acquiring an additional 395 shares in the last quarter. Allworth Financial LP increased its holdings in shares of Power Integrations by 257.8% in the 1st quarter. Allworth Financial LP now owns 594 shares of the semiconductor company's stock worth $30,000 after purchasing an additional 428 shares in the last quarter. Bayforest Capital Ltd raised its stake in shares of Power Integrations by 54.3% in the first quarter. Bayforest Capital Ltd now owns 631 shares of the semiconductor company's stock worth $32,000 after purchasing an additional 222 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Power Integrations by 576.3% during the first quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 536 shares in the last quarter. Finally, Parkside Financial Bank & Trust boosted its position in shares of Power Integrations by 125.9% during 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.