Power Integrations (NASDAQ:POWI) Stock Price Down 6.3% - Here's Why

Key Points

• Power Integrations shares fell 6.3% in mid-day trading, hitting an intraday low of $65.91 after closing at $70.87 the prior day. Trading volume was far below average, with 147,217 shares changing hands versus a 1.0 million daily average.
• Analyst sentiment remains mixed: while several firms raised price targets, the stock currently has a consensus Hold rating and an average target price of $76.20. The most recent reports included a bullish target hike from Susquehanna to $85 and Stifel to $95, but Deutsche Bank and Weiss maintained more cautious views.
• The company recently beat quarterly EPS and revenue estimates, reporting $0.25 EPS on $108.31 million in revenue, both ahead of forecasts. Power Integrations also paid a quarterly dividend of $0.215 per share, equal to a 1.3% annual yield.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) shares dropped 6.3% during mid-day trading on Friday . The stock traded as low as $65.91 and last traded at $66.4160. 147,217 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 1,035,390 shares. The stock had previously closed at $70.87.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on POWI. Susquehanna increased their price objective on shares of Power Integrations from $70.00 to $85.00 and gave the company a "positive" rating in a research report on Friday, May 8th. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Power Integrations in a research note on Friday, May 8th. Benchmark boosted their price objective 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. Stifel Nicolaus increased their target price on shares of Power Integrations from $82.00 to $95.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Power Integrations in a research note on Friday, May 8th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $76.20.

Power Integrations Stock Down 7.4%

The business's fifty day moving average price is $76.77 and its 200 day moving average price is $60.60. The firm has a market capitalization of $3.66 billion, a PE ratio of 218.79, a PEG ratio of 3.71 and a beta of 1.57.

Power Integrations (NASDAQ:POWI - Get Free Report) last released its earnings results on Thursday, May 7th. The semiconductor company reported $0.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. Power Integrations had a return on equity of 5.34% and a net margin of 3.72%.The business had revenue of $108.31 million for the quarter, compared to analyst estimates of $106.75 million. During the same quarter in the previous year, the company posted $0.31 earnings per share. The company's revenue for the quarter was up 2.6% compared to the same quarter last year. On average, analysts anticipate that Power Integrations, Inc. will post 0.76 earnings per share for the current year.

Power Integrations Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, May 29th were issued a dividend of $0.215 per share. This represents a $0.86 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend was Friday, May 29th. Power Integrations's dividend payout ratio is currently 286.67%.

Insider Activity at Power Integrations

In other news, VP Sunil Gupta sold 6,860 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $83.67, for a total transaction of $573,976.20. Following the completion of the transaction, the vice president directly owned 64,379 shares of the company's stock, valued at approximately $5,386,590.93. This represents a 9.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Balu Balakrishnan sold 124,287 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $86.44, for a total value of $10,743,368.28. Following the completion of the sale, the director directly owned 279,516 shares of the company's stock, valued at $24,161,363.04. This represents a 30.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 334,772 shares of company stock worth $27,322,535 over the last 90 days. Company insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Snyder Capital Management L P boosted its position in shares of Power Integrations by 148.8% during the 4th quarter. Snyder Capital Management L P now owns 2,064,707 shares of the semiconductor company's stock worth $73,380,000 after purchasing an additional 1,234,981 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Power Integrations by 1,885.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 943,365 shares of the semiconductor company's stock worth $33,528,000 after buying an additional 895,857 shares in the last quarter. M&T Bank Corp boosted its holdings in Power Integrations by 3,635.7% during the fourth quarter. M&T Bank Corp now owns 748,555 shares of the semiconductor company's stock worth $26,604,000 after buying an additional 728,517 shares in the last quarter. Wellington Management Group LLP boosted its position in Power Integrations by 35.7% during the third quarter. Wellington Management Group LLP now owns 2,261,281 shares of the semiconductor company's stock worth $90,926,000 after purchasing an additional 595,404 shares in the last quarter. Finally, State Street Corp raised its stake in Power Integrations by 18.0% in the 4th quarter. State Street Corp now owns 3,400,970 shares of the semiconductor company's stock valued at $120,870,000 after purchasing an additional 518,284 shares during the last quarter.

About Power Integrations

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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