Power Integrations (NASDAQ:POWI) Shares Gap Up After Dividend Announcement

Key Points

• Dividend declared: Power Integrations announced a $0.215 quarterly dividend (ex-dividend date May 29, payable June 30), implying a $0.86 annualized payout and a ~1.1% yield, though the dividend payout ratio is a high 220.51%.
• The stock gapped up premarket after the announcement, opening at $77.22 from a $71.83 close and last trading around $76.82 on volume of ~251,781 shares.
• Analysts are mixed—Susquehanna raised its target to $85 while others trimmed or held ratings, leaving a MarketBeat consensus of "Hold" with an average target of $64.50; the company recently posted a modest Q1 earnings beat and issued Q2 revenue guidance of $115M–$120M broadly in line with expectations.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report)'s stock price gapped up prior to trading on Friday after the company announced a dividend. The stock had previously closed at $71.83, but opened at $77.22. Power Integrations shares last traded at $76.8220, with a volume of 251,781 shares traded. The newly announced dividend which will be paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th will be given a $0.215 dividend. The ex-dividend date is Friday, May 29th. This represents a $0.86 annualized dividend and a yield of 1.1%. Power Integrations's dividend payout ratio is presently 220.51%.

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Analysts Set New Price Targets

Several research analysts have issued reports on POWI shares. Stifel Nicolaus increased their price objective on Power Integrations from $56.00 to $62.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Northland Securities cut Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 price objective for the company. in a research report on Monday, April 6th. Susquehanna increased their price objective on Power Integrations from $70.00 to $85.00 and gave the stock a "positive" rating in a research report on Friday. Benchmark upped their target price on Power Integrations from $55.00 to $65.00 and gave the company a "buy" rating in a report on Monday, April 6th. Finally, Zacks Research upgraded Power Integrations from a "strong sell" rating to a "hold" rating in a research report on Thursday, February 26th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $64.50.

Power Integrations Stock Performance

The company has a market capitalization of $4.26 billion, a PE ratio of 196.83, a price-to-earnings-growth ratio of 5.94 and a beta of 1.54. The stock's fifty day simple moving average is $55.06 and its 200-day simple moving average is $45.36.

Power Integrations (NASDAQ:POWI - Get Free Report) last released its earnings results on Thursday, February 5th. The semiconductor company reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.19 by $0.04. Power Integrations had a net margin of 4.98% and a return on equity of 5.15%. The company had revenue of $103.20 million for the quarter, compared to analyst estimates of $103.02 million. During the same period in the prior year, the firm earned $0.30 EPS. The firm's quarterly revenue was down 1.9% on a year-over-year basis. On average, equities analysts anticipate that Power Integrations, Inc. will post 0.64 EPS for the current year.

Power Integrations News Summary

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Street upgrade — Susquehanna raised its price target from $70 to $85 and moved to a "positive" rating, giving the stock further upside thesis from analysts. Article Title
• Positive Sentiment: Quarterly earnings beat — POWI reported Q1 EPS of $0.25 (vs. $0.23 consensus) and revenue of $108.31M (vs. $106.75M), signalling modest top/bottom-line outperformance. Article Title
• Positive Sentiment: Inventory & sales commentary improved — Company commentary and coverage note that Q1 sales beat targets and inventory levels are improving, which reduces channel risk and supports near-term revenue visibility. Article Title
• Positive Sentiment: Dividend declared — POWI declared a $0.215 quarterly dividend (ex-dividend date May 29; payable June 30), supporting income-oriented investor interest and signaling board confidence in cash flow. Article Title
• Positive Sentiment: Sales leadership hire — The appointment of Michael/Mike Balow as SVP of Worldwide Sales strengthens commercial execution and could help revenue acceleration if he expands channel or design-win momentum. Article Title
• Neutral Sentiment: Q2 guidance provided — Management issued Q2 revenue guidance of $115M–$120M (consensus ~ $115.1M). The range is roughly in line with Street expectations, so its net market impact is neutral-to-slightly-positive depending on execution.
• Neutral Sentiment: Supplemental materials available — Company released a press slide deck and conference-call materials alongside the release for deeper investor review; useful for conviction but not an immediate catalyst. Article Title

Insiders Place Their Bets

In related news, Director Balu Balakrishnan sold 6,368 shares of the stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $46.53, for a total transaction of $296,303.04. Following the transaction, the director directly owned 581,251 shares in the company, valued at approximately $27,045,609.03. This represents a 1.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Jennifer A. Lloyd sold 3,322 shares of the stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $46.57, for a total value of $154,705.54. Following the transaction, the chief executive officer owned 76,307 shares in the company, valued at $3,553,616.99. This trade represents a 4.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 21,152 shares of company stock valued at $994,599. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Power Integrations

Large investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. lifted its position in Power Integrations by 576.3% during the first quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock worth $32,000 after buying an additional 536 shares during the period. Hantz Financial Services Inc. lifted its position in Power Integrations by 77.6% during the third quarter. Hantz Financial Services Inc. now owns 849 shares of the semiconductor company's stock worth $34,000 after buying an additional 371 shares during the period. Kestra Advisory Services LLC purchased a new position in Power Integrations during the fourth quarter worth about $36,000. UMB Bank n.a. lifted its position in Power Integrations by 61.7% during the fourth quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company's stock worth $38,000 after buying an additional 410 shares during the period. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in Power Integrations during the fourth quarter worth about $48,000.

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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