Power Integrations (NASDAQ:POWI) Trading Up 7.7% - Still a Buy?

Key Points

• Shares jumped 7.7% to about $71.10 mid-day, but that move occurred on roughly 254,563 shares traded—about 73% below the stock's average daily volume.
• Analyst sentiment is mixed—three Buys, two Holds and one Sell—with a MarketBeat consensus of "Hold" and a consensus price target of $56.50, well under the current share price.
• Power Integrations slightly beat EPS estimates ($0.23 vs. $0.19) with revenue roughly in line, raised its quarterly dividend to $0.215 (1.2% yield) despite a very high payout ratio (220%), and insiders have been net sellers recently.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report)'s share price was up 7.7% during mid-day trading on Wednesday . The company traded as high as $70.76 and last traded at $71.0960. Approximately 254,563 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 945,542 shares. The stock had previously closed at $66.02.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on POWI shares. Stifel Nicolaus lifted their target price on Power Integrations from $56.00 to $62.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Susquehanna lifted their target price on Power Integrations from $50.00 to $53.00 and gave the company a "positive" rating in a research report on Thursday, January 22nd. Zacks Research raised Power Integrations from a "strong sell" rating to a "hold" rating in a research report on Thursday, February 26th. Northland Securities lowered Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 target price on the stock. in a research report on Monday, April 6th. Finally, Benchmark boosted their price target on Power Integrations from $55.00 to $65.00 and gave the stock a "buy" rating in a research report on Monday, April 6th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $56.50.

Power Integrations Stock Performance

The stock has a market cap of $3.89 billion, a price-to-earnings ratio of 178.85, a price-to-earnings-growth ratio of 5.36 and a beta of 1.30. The company has a 50-day simple moving average of $52.26 and a two-hundred day simple moving average of $44.38.

Power Integrations (NASDAQ:POWI - Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.04. The firm had revenue of $103.20 million for the quarter, compared to analyst estimates of $103.02 million. Power Integrations had a return on equity of 5.15% and a net margin of 4.98%.The business's quarterly revenue was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.30 EPS. As a group, sell-side analysts predict that Power Integrations, Inc. will post 0.64 earnings per share for the current fiscal year.

Power Integrations Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, February 27th were given a dividend of $0.215 per share. This is a positive change from Power Integrations's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Friday, February 27th. This represents a $0.86 annualized dividend and a dividend yield of 1.2%. Power Integrations's payout ratio is presently 220.51%.

Insider Buying and Selling

In other news, CEO Jennifer A. Lloyd sold 3,322 shares of Power Integrations stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $46.57, for a total transaction of $154,705.54. Following the completion of the transaction, the chief executive officer directly owned 76,307 shares in the company, valued at approximately $3,553,616.99. The trade was a 4.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Balu Balakrishnan sold 10,080 shares of Power Integrations stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $44.75, for a total value of $451,080.00. Following the transaction, the director owned 575,331 shares of the company's stock, valued at $25,746,062.25. This represents a 1.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 41,831 shares of company stock worth $1,936,896 over the last 90 days. Company insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Janney Montgomery Scott LLC bought a new position in shares of Power Integrations during the 1st quarter worth approximately $295,000. Louisiana State Employees Retirement System bought a new position in shares of Power Integrations during the 1st quarter worth approximately $1,260,000. Tactive Advisors LLC bought a new position in shares of Power Integrations during the 1st quarter worth approximately $393,000. Invesco Ltd. boosted its stake in shares of Power Integrations by 80.9% during the 4th quarter. Invesco Ltd. now owns 242,853 shares of the semiconductor company's stock worth $8,631,000 after acquiring an additional 108,599 shares during the period. Finally, Vident Advisory LLC boosted its stake in shares of Power Integrations by 13.0% during the 4th quarter. Vident Advisory LLC now owns 11,697 shares of the semiconductor company's stock worth $416,000 after acquiring an additional 1,349 shares during the period.

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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