Power Integrations (NASDAQ:POWI) Trading Down 4% - Here's What Happened

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) dropped 4% during mid-day trading on Friday . The company traded as low as $44.00 and last traded at $43.76. Approximately 144,616 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 551,334 shares. The stock had previously closed at $45.57.

Wall Street Analyst Weigh In

POWI has been the subject of a number of recent research reports. Susquehanna lowered their target price on Power Integrations from $70.00 to $55.00 and set a "positive" rating for the company in a research note on Thursday, August 7th. Benchmark decreased their target price on Power Integrations from $70.00 to $55.00 and set a "buy" rating for the company in a research report on Monday, August 11th. Finally, Wall Street Zen lowered Power Integrations from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $61.67.

Power Integrations Stock Down 5.7%

The company has a market capitalization of $2.41 billion, a price-to-earnings ratio of 74.05, a price-to-earnings-growth ratio of 2.81 and a beta of 1.38. The business has a 50-day moving average price of $47.68 and a 200-day moving average price of $50.94.

Power Integrations (NASDAQ:POWI - Get Free Report) last issued its 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 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 the consensus estimate of $115.02 million. During the same quarter in the previous year, the company posted $0.28 earnings per share. The business's quarterly revenue was up 9.1% compared to the same quarter last year. As a group, sell-side analysts predict that Power Integrations, Inc. will post 0.93 EPS for the current year.

Power Integrations Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, August 29th will be paid a dividend of $0.21 per share. The ex-dividend date is Friday, August 29th. This represents a $0.84 dividend on an annualized basis and a yield of 2.0%. Power Integrations's dividend payout ratio (DPR) is currently 144.83%.

Insider Activity at Power Integrations

In other news, VP Doug Bailey sold 16,989 shares of the company's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $46.41, for a total value of $788,459.49. Following the sale, the vice president directly owned 50,798 shares in the company, valued at approximately $2,357,535.18. This represents a 25.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Gagan Jain sold 2,036 shares of the company's stock in a transaction that occurred 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 completion of the sale, the vice president owned 18,812 shares in the company, valued at approximately $866,292.60. This represents a 9.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 36,014 shares of company stock worth $1,678,322. Corporate insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of POWI. Hantz Financial Services Inc. boosted its position in Power Integrations by 475.9% in the 2nd quarter. Hantz Financial Services Inc. now owns 478 shares of the semiconductor company's stock valued at $27,000 after buying an additional 395 shares during the last quarter. Allworth Financial LP raised its stake 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 valued at $30,000 after purchasing an additional 428 shares during the period. Bayforest Capital Ltd raised its stake in shares of Power Integrations by 54.3% in the 1st quarter. Bayforest Capital Ltd now owns 631 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 222 shares during the period. Geneos Wealth Management Inc. raised its stake in shares of Power Integrations by 576.3% in the 1st 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 during the period. Finally, Parkside Financial Bank & Trust grew its holdings in shares of Power Integrations by 125.9% in the 2nd quarter. Parkside Financial Bank & Trust now owns 585 shares of the semiconductor company's stock valued at $33,000 after acquiring an additional 326 shares in 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.