Power Integrations (NASDAQ:POWI) Shares Gap Up - Here's What Happened

Key Points

• Power Integrations shares gapped up ahead of Wednesday’s open, opening at $88.17 after closing at $84.09, though the stock later traded lower around $83.21.
• Recent analyst action has been mixed, with several firms raising price targets, but the overall consensus remains Hold and the average target is $64.50.
• The company recently beat quarterly earnings estimates with $0.25 EPS on $108.31 million in revenue, and it also announced a quarterly dividend of $0.215 per share payable June 30.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $84.09, but opened at $88.17. Power Integrations shares last traded at $83.2090, with a volume of 754,741 shares trading hands.

Analysts Set New Price Targets

Several research firms have recently weighed in on POWI. Benchmark boosted their target price on shares of Power Integrations from $55.00 to $65.00 and gave the stock a "buy" rating in a research report on Monday, April 6th. Zacks Research raised Power Integrations from a "strong sell" rating to a "hold" rating in a report on Thursday, February 26th. Susquehanna lifted their target price on Power Integrations from $70.00 to $85.00 and gave the stock a "positive" rating in a research report on Friday, May 8th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Power Integrations in a report on Friday, May 8th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Power Integrations in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $64.50.

Power Integrations Stock Up 1.6%

The company has a market cap of $4.76 billion, a P/E ratio of 284.03, a PEG ratio of 4.31 and a beta of 1.54. The company has a 50 day moving average price of $61.44 and a 200-day moving average price of $48.08.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. Power Integrations had a net margin of 3.72% and a return on equity of 5.34%. The business had revenue of $108.31 million for the quarter, compared to analyst estimates of $106.75 million. During the same quarter last year, the business earned $0.31 earnings per share. The business's revenue for the quarter was up 2.6% on a year-over-year basis. On average, research analysts expect that Power Integrations, Inc. will post 0.64 earnings per share for the current fiscal year.

Power Integrations Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be given a $0.215 dividend. This represents a $0.86 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, May 29th. Power Integrations's dividend payout ratio (DPR) is 286.67%.

Insider Buying and Selling at Power Integrations

In related news, Director Balu Balakrishnan sold 53,880 shares of the stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $70.71, for a total value of $3,809,854.80. Following the completion of the sale, the director directly owned 522,376 shares of the company's stock, valued at approximately $36,937,206.96. This represents a 9.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Nicholas Brathwaite sold 6,895 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $72.41, for a total transaction of $499,266.95. Following the sale, the director owned 30,609 shares of the company's stock, valued at approximately $2,216,397.69. This represents a 18.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 61,088 shares of company stock worth $4,325,376 over the last three months. 1.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in POWI. Geneos Wealth Management Inc. lifted its position in Power Integrations by 576.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 536 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Power Integrations by 125.5% in the first quarter. EverSource Wealth Advisors LLC now owns 814 shares of the semiconductor company's stock worth $42,000 after purchasing an additional 453 shares during the period. Hantz Financial Services Inc. lifted its position in shares of Power Integrations by 77.6% during the 3rd quarter. Hantz Financial Services Inc. now owns 849 shares of the semiconductor company's stock worth $34,000 after purchasing an additional 371 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in Power Integrations during the 4th quarter valued at approximately $36,000. Finally, UMB Bank n.a. grew its holdings in Power Integrations by 61.7% in the 4th quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company's stock valued at $38,000 after buying an additional 410 shares during the last quarter.

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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