Power Integrations (NASDAQ:POWI) Trading Up 7.7% - Here's What Happened

Key Points

• Stock surge: POWI climbed about 7.7% in mid-day trading to roughly $66.60 (intraday high $66.08) on ~651,384 shares, ~27% below its average daily volume.
• Mixed analyst views: Several firms raised price targets (e.g., Stifel to $62, Benchmark to $65), but MarketBeat's consensus is a "Hold" with an average target of $56.50—below the current share price.
• Fundamentals and payout: The company beat EPS estimates ($0.23 vs. $0.19) with revenue roughly in line at $103.2M (down 1.9% YoY), and raised its quarterly dividend to $0.215 (annualized $0.86) despite a high payout ratio of ~220%.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report)'s stock price was up 7.7% during mid-day trading on Tuesday . The company traded as high as $66.08 and last traded at $66.60. Approximately 651,384 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 895,851 shares. The stock had previously closed at $61.83.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on POWI shares. Stifel Nicolaus boosted their price objective on Power Integrations from $56.00 to $62.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Benchmark boosted their price objective on Power Integrations from $55.00 to $65.00 and gave the company a "buy" rating in a research note on Monday, April 6th. Weiss Ratings reissued a "sell (d)" rating on shares of Power Integrations in a research note on Monday, December 29th. Northland Securities downgraded Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 price target on the stock. in a research note on Monday, April 6th. Finally, Susquehanna increased their price target on Power Integrations from $50.00 to $53.00 and gave the stock a "positive" rating in a report on Thursday, January 22nd. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $56.50.

Power Integrations Stock Up 8.2%

The business has a 50-day moving average price of $49.44 and a two-hundred day moving average price of $43.00. The company has a market capitalization of $3.71 billion, a price-to-earnings ratio of 171.09, a price-to-earnings-growth ratio of 4.45 and a beta of 1.30.

Power Integrations (NASDAQ:POWI - Get Free Report) last issued its earnings results on Thursday, February 5th. The semiconductor company reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.19 by $0.04. Power Integrations had a return on equity of 5.15% and a net margin of 4.98%.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 earnings per share. Power Integrations's revenue for the quarter was down 1.9% on a year-over-year basis. On average, sell-side analysts anticipate that Power Integrations, Inc. will post 0.64 EPS for the current fiscal year.

Power Integrations Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were given a dividend of $0.215 per share. The ex-dividend date of this dividend was Friday, February 27th. This is a positive change from Power Integrations's previous quarterly dividend of $0.21. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.3%. Power Integrations's payout ratio is currently 220.51%.

Insider Transactions at Power Integrations

In other news, VP Sunil Gupta sold 2,168 shares of the firm's stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $45.58, for a total value of $98,817.44. Following the transaction, the vice president owned 95,766 shares in the company, valued at $4,365,014.28. This trade represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Gagan Jain sold 3,481 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $48.22, for a total value of $167,853.82. Following the completion of the transaction, the vice president owned 30,769 shares in the company, valued at $1,483,681.18. This represents a 10.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 41,831 shares of company stock valued at $1,936,896 over the last ninety days. Company insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Y Intercept Hong Kong Ltd bought a new position in shares of Power Integrations in the third quarter valued at approximately $3,997,000. Copeland Capital Management LLC lifted its holdings in shares of Power Integrations by 7.2% in the third quarter. Copeland Capital Management LLC now owns 1,276,860 shares of the semiconductor company's stock valued at $51,343,000 after purchasing an additional 86,123 shares in the last quarter. Quantbot Technologies LP lifted its holdings in shares of Power Integrations by 48,387.7% in the third quarter. Quantbot Technologies LP now owns 130,432 shares of the semiconductor company's stock valued at $5,245,000 after purchasing an additional 130,163 shares in the last quarter. SG Americas Securities LLC lifted its holdings in shares of Power Integrations by 108.7% in the fourth quarter. SG Americas Securities LLC now owns 44,351 shares of the semiconductor company's stock valued at $1,576,000 after purchasing an additional 23,096 shares in the last quarter. Finally, ASR Vermogensbeheer N.V. lifted its holdings in shares of Power Integrations by 8.2% in the third quarter. ASR Vermogensbeheer N.V. now owns 307,553 shares of the semiconductor company's stock valued at $12,366,000 after purchasing an additional 23,354 shares in 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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