Power Integrations (NASDAQ:POWI) Trading 16.5% Higher - Here's Why

Key Points

• Power Integrations (NASDAQ:POWI) shares surged 16.5% in recent trading, reaching a last traded price of $40.37, significantly above the previous close of $34.64.
• Analysts have varying opinions on the stock, with a "buy" rating from Benchmark and a lowered price target of $55.00 from Susquehanna, while Weiss Ratings maintains a "sell" rating.
• The company recently declared a quarterly dividend of $0.21, resulting in a 2.0% dividend yield, though its payout ratio is notably high at 144.83%.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) shares traded up 16.5% during trading on Monday . The company traded as high as $40.60 and last traded at $40.37. 1,025,345 shares were traded during trading, an increase of 79% from the average session volume of 571,418 shares. The stock had previously closed at $34.64.

Analysts Set New Price Targets

Several research firms recently commented on POWI. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Power Integrations in a research note on Wednesday, October 8th. Benchmark restated a "buy" rating and issued a $55.00 price target on shares of Power Integrations in a report on Tuesday, September 23rd. Wall Street Zen lowered shares of Power Integrations from a "buy" rating to a "hold" rating in a report 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 equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $61.67.

Power Integrations Price Performance

The company's fifty day moving average price is $43.69 and its 200 day moving average price is $49.10. The company has a market cap of $2.35 billion, a PE ratio of 72.07, a P/E/G ratio of 2.27 and a beta of 1.37.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping 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 business had revenue of $115.85 million during the quarter, compared to the consensus estimate of $115.02 million. During the same quarter last year, the company posted $0.28 earnings per share. The firm's quarterly revenue was up 9.1% compared to the same quarter last year. On average, analysts forecast that Power Integrations, Inc. will post 0.93 EPS for the current year.

Power Integrations Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Friday, August 29th were paid a $0.21 dividend. The ex-dividend date was Friday, August 29th. This represents a $0.84 annualized dividend and a dividend yield of 2.0%. Power Integrations's dividend payout ratio (DPR) is presently 144.83%.

Insider Activity

In other news, VP Gagan Jain sold 2,036 shares of Power Integrations stock in a transaction dated 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 transaction, the vice president owned 18,812 shares in the company, valued at $866,292.60. This trade represents a 9.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Doug Bailey sold 16,989 shares of Power Integrations stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $46.41, for a total transaction of $788,459.49. Following the completion of the transaction, the vice president owned 50,798 shares of the company's stock, valued at $2,357,535.18. The trade was a 25.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold 36,470 shares of company stock valued at $1,697,214 in the last quarter. Corporate insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Power Integrations

A number of institutional investors and hedge funds have recently made changes to their positions in POWI. Park Avenue Securities LLC raised its stake in Power Integrations by 11.1% in the first quarter. Park Avenue Securities LLC now owns 4,093 shares of the semiconductor company's stock valued at $207,000 after purchasing an additional 410 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of Power Integrations by 243.2% in the 1st quarter. GAMMA Investing LLC now owns 2,011 shares of the semiconductor company's stock worth $102,000 after purchasing an additional 1,425 shares in the last quarter. SG Americas Securities LLC bought a new position in shares of Power Integrations during the 1st quarter valued at about $344,000. Fifth Third Bancorp raised its holdings in shares of Power Integrations by 31.9% during the 1st quarter. Fifth Third Bancorp now owns 2,186 shares of the semiconductor company's stock valued at $110,000 after buying an additional 529 shares in the last quarter. Finally, Azzad Asset Management Inc. ADV bought a new stake in Power Integrations in the 1st quarter worth approximately $683,000.

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.

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