Power Integrations (NASDAQ:POWI) Trading Up 6.7% - Still a Buy?

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report)'s stock price was up 6.7% during trading on Wednesday . The company traded as high as $53.69 and last traded at $54.34. Approximately 218,499 shares were traded during trading, a decline of 54% from the average daily volume of 470,834 shares. The stock had previously closed at $50.92.

Wall Street Analysts Forecast Growth

POWI has been the topic of several analyst reports. Wall Street Zen cut Power Integrations from a "buy" rating to a "hold" rating in a research note on Saturday, May 31st. Stifel Nicolaus upped their target price on Power Integrations from $70.00 to $75.00 and gave the stock a "buy" rating in a report on Tuesday, May 13th. Finally, Benchmark reaffirmed a "buy" rating and set a $78.00 price target on shares of Power Integrations in a research report on Friday, February 7th. Three analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $74.67.

Power Integrations Stock Performance

The stock has a market capitalization of $3.08 billion, a PE ratio of 96.04, a price-to-earnings-growth ratio of 4.08 and a beta of 1.31. The stock's 50 day moving average is $49.55 and its two-hundred day moving average is $57.11.

Power Integrations (NASDAQ:POWI - Get Free Report) last issued its quarterly earnings results on Monday, May 12th. The semiconductor company reported $0.31 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.03. The firm had revenue of $105.53 million for the quarter, compared to analyst estimates of $105.44 million. Power Integrations had a net margin of 7.69% and a return on equity of 4.48%. Power Integrations's quarterly revenue was up 15.1% compared to the same quarter last year. During the same period last year, the company posted $0.18 EPS. Equities research analysts expect that Power Integrations, Inc. will post 0.93 EPS for the current fiscal year.

Power Integrations Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Friday, May 30th will be issued a $0.21 dividend. The ex-dividend date is Friday, May 30th. This represents a $0.84 dividend on an annualized basis and a yield of 1.53%. Power Integrations's payout ratio is 129.23%.

Insider Buying and Selling at Power Integrations

In other news, CEO Balu Balakrishnan sold 9,544 shares of the firm's stock in a transaction that occurred on Wednesday, April 2nd. The shares were sold at an average price of $51.19, for a total transaction of $488,557.36. Following the completion of the sale, the chief executive officer now owns 590,580 shares in the company, valued at $30,231,790.20. This trade represents a 1.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Sandeep Nayyar sold 1,929 shares of the firm's stock in a transaction that occurred on Wednesday, April 2nd. The stock was sold at an average price of $50.89, for a total transaction of $98,166.81. Following the sale, the chief financial officer now owns 107,357 shares of the company's stock, valued at $5,463,397.73. This represents a 1.77% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 12,561 shares of company stock worth $642,092. Insiders own 1.40% of the company's stock.

Institutional Trading of Power Integrations

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC acquired a new stake in Power Integrations in the 4th quarter valued at approximately $288,000. Charles Schwab Investment Management Inc. increased its holdings in Power Integrations by 5.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 654,973 shares of the semiconductor company's stock valued at $40,412,000 after purchasing an additional 33,741 shares during the last quarter. Bank of America Corp DE increased its holdings in Power Integrations by 18.5% in the 4th quarter. Bank of America Corp DE now owns 401,125 shares of the semiconductor company's stock valued at $24,749,000 after purchasing an additional 62,750 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in Power Integrations in the 4th quarter valued at approximately $7,470,000. Finally, Wells Fargo & Company MN increased its holdings in Power Integrations by 6.2% in the 4th quarter. Wells Fargo & Company MN now owns 115,956 shares of the semiconductor company's stock valued at $7,154,000 after purchasing an additional 6,750 shares during 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.